The Trump administration has suspended Microsoft, Adobe and several other major technology companies from a US program that helps skilled foreign workers obtain permanent residency, accusing the firms of fraud. Vice President JD Vance announced the move on Thursday, alongside a separate investigation into nine universities over their use of international student programs.
The suspension targets the permanent labor certification process, the route employers use to sponsor skilled foreign workers for green cards. Alongside Microsoft and Adobe, the administration named Capgemini, Cognizant, HCL, Infosys, Tata and Wipro.
"Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," Vance said in a news conference on Thursday, according to Reuters.
Labor Secretary Keith Sonderling said the government would not accept any new or pending permanent labor certification applications involving the suspended companies.
The program is a mainstay of the tech industry. H-1B visas, which are designed for highly skilled positions that employers may struggle to fill with qualified US workers, count technology companies among their largest users, with nearly three-quarters of approved visas going to workers from India, according to The Associated Press.
Vance also said the administration would investigate nine universities, including Harvard, Yale and Stanford, over allegations they are abusing a program that allows international students to come to the US, using it to undermine wages for American workers.
Microsoft and Adobe did not immediately respond to requests for comment.
Analysis
Why This Matters
- The suspensions cut off a major recruitment channel for some of the world's largest technology employers at a time of intense competition for specialised engineering talent.
- Thousands of pending green card applications from workers at the named firms are now in limbo, and nearly three-quarters of approved H-1B visas go to workers from India, according to The Associated Press.
- The fraud accusation, combined with the university investigation, points to a broader administration push against employment-based immigration pathways.
Background
The permanent labor certification program, known as PERM, requires employers to show that no qualified US workers are available for a position before they can sponsor a foreign employee for a green card. Alongside the H-1B visa, it is a common route for skilled migrants to move from temporary to permanent status in the United States. Technology companies and Indian IT services firms have been among the heaviest users for decades. Thursday's move extends the administration's long-standing emphasis on restricting immigration and prioritising American workers, a theme Vance invoked directly in his remarks.
Key Perspectives
The administration: Vance framed the suspension as protecting American workers, telling Microsoft to hire "great American workers" and accusing the affected firms of fraud. The Labor Department, under Secretary Keith Sonderling, will accept no new or pending applications from the named companies.
The affected companies: Microsoft, Adobe and the Indian IT services firms rely heavily on skilled foreign workers for specialised roles, and industry arguments hold that these workers complement rather than displace US employees. Microsoft and Adobe had not responded to requests for comment by the time of the announcement.
Critics and skeptics: Immigration lawyers and advocates may challenge whether the fraud allegations hold up in court, and warn that abruptly blocking the program could disrupt company operations and push talent and hiring to other countries. The inclusion of major Indian firms also raises the stakes for US-India economic relations.
What to Watch
- Whether any suspended company files a legal challenge, and how quickly the Labor Department processes or rejects the backlog of pending applications.
- Whether the administration extends the suspension to other major technology employers.
- The findings of the investigations into Harvard, Yale, Stanford and six other universities.
- Any ripple effects on the H-1B program, which shares the same underlying policy debate about skilled foreign labour.