The Trump administration froze on Thursday some green-card filings by Microsoft, Adobe, and major IT outsourcers and opened probes into nine elite universities, widening a visa crackdown it says targets fraud and American job losses. The twin actions mark the broadest strike yet against skilled-worker immigration programs, potentially blocking a common path to permanent residency for thousands of foreign tech workers while putting some of the country's most prominent research universities on notice.
The moves come even as the administration cultivates closer ties with the same tech leaders whose companies are now in its crosshairs. "Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," Vice President JD Vance said.
Labour Secretary Keith Sonderling said the suspension would also cover Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini. "We will not accept any new or process any pending permanent labour certification applications involving these companies," Sonderling said.
Vance also said nine universities, including Harvard, Yale, and Stanford, would be investigated for what the administration called the misuse of exchange-visitor visas to undercut American wages. Microsoft, Adobe, Cognizant, Infosys, HCL Technologies, Wipro, and Capgemini did not immediately respond to requests for comment.
Tata Consultancy Services declined to comment. Under the Labour Department's permanent labour certification process, known as PERM, which is required for most employment-based green cards, employers must show that hiring a foreign worker will not harm the wages, working conditions, or job opportunities of US workers.
Approved applications then go to US Citizenship and Immigration Services (USCIS). The freeze does not appear to directly affect current holders of H-1B visas, which allow companies to employ foreign workers temporarily, but it could block a common route by which employers sponsor those workers for permanent residency.
Industry analysts suggest that this policy shift could lead to a significant talent crunch in the US technology sector. By targeting the PERM process, the administration is effectively tightening the bottleneck for high-skilled immigration, which has historically been a cornerstone of American innovation.
The investigation into universities focuses on whether academic institutions have been facilitating visa programs in a way that bypasses standard labor market tests. Officials claim that some programs have been used to bring in foreign nationals at lower pay scales than their American counterparts.
As the legal and administrative battles unfold, tech giants are expected to lobby heavily against these restrictions. The outcome of these probes could redefine the landscape for international students and professionals seeking to build careers in the United States.
For now, the uncertainty remains high for thousands of employees currently in the pipeline. Legal experts advise that affected companies may seek judicial intervention to challenge the freeze, arguing that the administration's actions lack sufficient statutory basis.