On Thursday, the US government blocked Microsoft, Adobe, and major IT outsourcing firms from an essential green-card initiative while launching investigations into nine prominent universities, expanding a broader regulatory effort to curb fraud and safeguard domestic employment.
JD Vance, Vice President of the US, said, “There has been no company in the United States that has abused the system more than Microsoft.” He said the company laid off 6,000 American workers last year while benefiting from 6,300 H-1B temporary worker visas and nearly 3,00 green cards.
The administration’s criticism came hours before President Trump honoured several immigrant Tech Leaders, including Microsoft CEO Satya Nadella and Elon Musk.
Meanwhile, Microsoft remains the top filer of PERM applications, which require employers to prove foreign hires wil not harm US wages.
Labour Secretary Keith Sonderling said the suspension would also cover Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. “We will not accept any new or pending permanent labour certification applications involving these companies,” Sonderling said.
Vance stated that the suspensions will remain indefinite until recruitment practices change, accusing companies of using poor job advertisements to falsely claim a lack of American applicants.
Microsoft defended its compensation policies, maintaining that H-1B staff receive equal pay for comparable work. Cognizant, Infosys, Wipro, HCL Technologies, Capgemini and Adobe didn’t immediately respond, whereas Tata Consultancy Services declined to comment.
Vance also said nine universities, including Harvard, Yale and Stanford, would be investigated for what the administration calls the misuse of exchange visitor visas to undercut American wages.
Brown and MIT are among the nine universities targeted in the probe, and Labour Inspector General Anthony D’Esposito stated that official subpoenas are already out.
“It could have an enormous economic impact on the whole US economy,” said Sarah Spreitzer, a vice president at the American Council on Education, which represents college and university presidents. International students historically spent $40 billion a year while in the US, she said.
Tanishka Jain is a Content Writer at TradeFlock with 2+ years of experience in business journalism, with a sharp eye for spotting trends shaping the industry. She has authored over 50 articles, specializing in business analyses that break down what's really moving the market. Her writing is engaging and accessible, built to help readers of all backgrounds make sense of business shifts. Several of her trend-based analyses have gone on to prove accurate, reflecting her strong read on where the market is headed. in
