Labor certifications frozen
The Trump administration has suspended Microsoft, Adobe and several large IT companies from a program that lets employers sponsor skilled foreign workers for permanent residency. Vice President JD Vance announced the decision at the White House and accused the companies of fraud.
Labor Secretary Keith Sonderling said the government will not accept new applications, or process pending ones, from Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. "We will not accept any new or process any pending permanent labor certification applications involving these companies," he said.
"Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," Vance said. He added that Microsoft laid off about 6,000 American workers while hiring 6,300 H-1B visa holders.
What the freeze does and does not do
The action does not directly affect people who already hold H-1B visas, which let companies employ foreign workers temporarily. But it can block the common route those workers use to apply for a green card. Technology companies are the heaviest users of the program, and nearly three-quarters of approvals go to workers from India.
Microsoft did not respond immediately to requests for comment.
Nine universities face a J-1 investigation
Vance also said nine universities merit investigation over their use of the J-1 exchange visa program, which brings foreign students, researchers and teachers to the United States. They are Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, MIT and Arizona State.
"Elite universities bring in foreigners to undercut the wages of American residents," Vance said. Anthony D'Esposito, the Labor Department's inspector general, said the schools have been served subpoenas.
University groups and immigration lawyers argue the J-1 program funds research and teaching work that campuses struggle to staff. Vance called on Congress to reform the H-1B system. The announcement is the latest step in a wider crackdown on foreign students and workers.