US freezes green card program for Microsoft and IT firms, probes nine universities over visa fraud

The Trump administration on Thursday suspended Microsoft, Adobe and five major information technology outsourcing firms from the PERM program, the permanent labor certification system that serves as the first step toward employment based green cards for foreign workers holding H-1B visas. The suspended outsourcers named in the action include Infosys, Tata Consultancy Services, Wipro, HCL and Cognizant. Administration officials cited fraud and system abuse as the basis for the suspension.

Vice President JD Vance made the administration's case in stark terms, saying Microsoft had laid off 6,000 American workers last year while using 6,300 H-1B visas and nearly 3,000 green cards. Vance accused the technology firms of hiring foreign staff at lower wages to undercut American employees. The companies have previously argued that the visa system fills gaps for specialized skills that are hard to hire for domestically, and industry groups have warned that restrictions push work and talent to other countries.

In a parallel move announced the same day, the administration opened investigations into nine prominent universities, including Harvard, Stanford and Yale, over alleged misuse of visa programs. Officials did not release details of what misuse is alleged, and the universities did not immediately respond to requests for comment on Thursday.

The actions amount to the broadest strike yet against skilled worker immigration in the United States. Suspension from the PERM program effectively cuts off one of the most common paths by which foreign technology workers move from temporary H-1B status to permanent residency, and the investigations extend the pressure from employers to the schools that train and host large numbers of international students.

The timing drew wide attention because Microsoft chief executive Satya Nadella had been honored by President Trump with a medal for contributions to America only hours before the suspension was announced. The administration has not said whether the suspended companies can appeal or how long the suspensions will remain in effect.