The Trump administration has suspended certain employment-based green-card filings involving major technology and IT companies, including Microsoft, Adobe, Infosys and several other firms, as part of an expanding crackdown on skilled-worker immigration.
The US government says the action is aimed at investigating alleged abuse of immigration programmes and protecting American workers from unfair competition.
The suspension affects the PERM labour certification process, which is required for many employment-based green-card applications. Under the system, employers are generally required to demonstrate that hiring a foreign worker will not negatively affect the wages or employment opportunities of American workers.
US Vice President JD Vance strongly criticised Microsoft while announcing the move.
“There has been no company in the United States, unfortunately, that has abused the system more than Microsoft,” Vance said.
He pointed to Microsoft’s workforce reductions and use of foreign-worker visas, claiming the company laid off thousands of American employees while benefiting from thousands of H-1B visas and nearly 3,000 green cards.
The announcement came shortly before President Donald Trump was scheduled to present Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation.
Microsoft, however, disputed the suggestion that it uses the H-1B programme to undercut American workers.
The company said approximately 80% of the H-1B applications it filed during the last fiscal year involved extending or changing the immigration status of existing employees rather than bringing in new workers.
Microsoft also said it pays H-1B employees the same as other workers performing comparable jobs.
The company announced in July that it would eliminate about 4,800 positions, representing roughly 2.1% of its worldwide workforce.
US Labor Secretary Keith Sonderling said the suspension would also apply to Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
“We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.
According to the administration, the companies have collectively sought almost three million foreign workers since 2009, with more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.
Vance said the suspensions would remain in place for as long as necessary, arguing that the affected companies need to change aspects of their hiring practices.
He also accused some employers of advertising jobs in ways that make it difficult to attract applicants before using the lack of applicants as justification for hiring foreign workers at lower costs.
The affected companies could face limited immediate financial consequences, but analysts warn that the longer-term effects could be more significant for the technology industry.
“The immediate financial impact on major technology companies may be relatively limited at this moment, but the longer-term implications for innovation and competitiveness could be much more significant,” said Ken Mahoney, CEO of Mahoney Asset Management.
Adobe, Cognizant, Infosys, HCL Technologies, Wipro and Capgemini had not immediately responded to requests for comment, while Tata Consultancy Services declined to comment.
India’s IT industry body, Nasscom, said Indian technology companies operating in the US have already reduced their dependence on H-1B visas and that comparatively few employees pursue green cards through the PERM route.
Universities Also Face Investigations
The immigration crackdown is not limited to technology companies.
Vance also announced investigations into nine major US universities, including Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology.
The administration is examining whether exchange-visitor visa programmes are being misused in ways that could affect American workers’ wages.
Labor Inspector General Anthony D’Esposito said subpoenas had already been issued as investigators examine allegations involving foreign influence, financial relationships and possible visa violations connected to federally funded research.
The investigation adds another chapter to the Trump administration’s ongoing dispute with Harvard over international students and immigration compliance.
Last year, the Department of Homeland Security subpoenaed Harvard over alleged misconduct involving international students and questions about the university’s compliance with immigration requirements. Harvard rejected the action as “unfounded retribution” but said it would comply with legal requirements.
The latest measures form part of a broader immigration enforcement campaign that has increasingly placed pressure on companies and universities that rely heavily on international talent.
The Labor Department launched an enforcement initiative known as “Project Firewall” last year, while the administration has also introduced other measures affecting the H-1B visa programme.
The developments come at a time when major technology companies are seeking closer cooperation with the Trump administration on issues including artificial intelligence regulation, even as immigration policies create new tensions between the government and the technology sector.
