The United States government has suspended Microsoft and several major technology companies from a key green card programme while launching investigations into nine universities over alleged visa abuse and practices that could undermine American workers’ wages.
The measures announced on Thursday form part of President Donald Trump’s administration’s broader efforts to tighten immigration rules and protect jobs for American citizens.
The crackdown could restrict a major pathway to permanent residency for foreign technology workers and increase scrutiny of universities employing international researchers.
US Vice President JD Vance accused Microsoft of abusing the immigration system, citing the company’s workforce reductions alongside its use of foreign workers.
“There has been no company in the United States, unfortunately, that has abused the system more than Microsoft,” Vance said.
He claimed Microsoft laid off 6,000 American workers last year while benefiting from 6,300 H-1B temporary worker visas and nearly 3,000 green cards.
His remarks came hours before Trump honoured technology billionaires, including Microsoft Chief Executive Officer Satya Nadella, for their contributions to the United States.
Microsoft, which is the largest filer of applications under the permanent labour certification programme, said about 80 per cent of the H-1B applications it submitted in the last fiscal year were intended to extend or change the status of existing employees rather than recruit new workers.
The US Labour Department said the suspension would also affect Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Capgemini and software maker Adobe.
The restrictions cover new and pending applications under the permanent labour certification process, commonly known as PERM, which is required for most employment-based green cards.
Labour Secretary Keith Sonderling said the affected companies had sought nearly three million foreign workers since 2009, receiving more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.
“We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.
Vance said the suspensions would remain in place “as long as it needs to,” adding that the administration wanted the companies to change their recruitment practices.
He alleged that some employers advertised jobs ineffectively before using the lack of applicants to justify hiring foreign workers at lower wages.
Microsoft defended its employment practices, saying it paid H-1B workers the same wages as other employees performing comparable jobs.
Adobe, Cognizant, Infosys, HCL Technologies, Wipro and Capgemini did not immediately respond to requests for comment, while Tata Consultancy Services declined to comment.
The action follows the launch of Project Firewall by the Labour Department in September last year to investigate alleged abuses of the H-1B visa programme.
A White House proclamation also introduced a one-time $100,000 fee on new H-1B petitions for workers hired from abroad.
Meanwhile, the administration announced investigations into nine American universities, including Harvard, Yale, Stanford, Brown University and the Massachusetts Institute of Technology, over alleged misuse of exchange-visitor visas to undermine American workers’ wages.
Labour Inspector General Anthony D’Esposito said subpoenas had already been served and investigators would examine whether foreign influence, improper financial relationships or visa abuse were compromising federally funded research.
The investigations could have significant economic consequences, according to Sarah Spreitzer, a vice president at the American Council on Education, which represents college and university presidents.
She said international students had historically spent $40bn annually in the United States.
The latest action also intensifies the administration’s dispute with Harvard over international students.
Last year, the Department of Homeland Security subpoenaed the university over alleged misconduct involving foreign students and its compliance with immigration laws.
Harvard described the subpoena as “unfounded retribution” but said it would comply with legal requirements.
The Trump administration’s changing visa policies have also affected international student recruitment.
Reuters previously reported that a sharp decline in applications to Columbia University contributed to the institution suspending admissions to one of its journalism programmes.
