The US administration has frozen some green-card filings involving Microsoft, Adobe and major technology outsourcing companies while launching investigations into nine leading universities, intensifying its crackdown on skilled-worker and exchange-visitor visa programmes.
The measures could disrupt a common route to permanent residency for thousands of foreign technology workers. The administration says it is targeting alleged fraud and the loss of jobs and wages for American workers.
US vice-president JD Vance said the action against Microsoft was intended to pressure the company to employ more US citizens.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Mr Vance said.
Labour secretary Keith Sonderling said the suspension would cover Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
“We will not accept any new or process any pending permanent labour certification applications involving these companies,” Mr Sonderling said.
The permanent labour certification process, known as PERM, is required for most employment-based green cards. Employers must demonstrate that hiring a foreign worker would not harm the wages, working conditions or job opportunities of US workers before an approved application proceeds to the country’s immigration agency.
The freeze does not appear to directly affect existing H-1B visa holders, whose visas allow companies to employ foreign workers temporarily. It could, however, obstruct a frequently used route to permanent residency for those workers.
Indian IT companies including Infosys, Tata Consultancy Services, Wipro and HCL Technologies, alongside Cognizant, have long been among the biggest users of H-1B visas. Microsoft is the largest filer of PERM applications, according to data compiled by Permtrack.app.
Microsoft, Adobe, Cognizant, Infosys, HCL Technologies, Wipro and Capgemini did not immediately respond to requests for comment. Tata Consultancy Services declined to comment.
Universities face exchange-visa investigations
Mr Vance also said nine universities would be investigated over what the administration described as the misuse of J-1 exchange-visitor visas to undercut American wages.
The institutions include Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology. Labour inspector general Anthony D’Esposito said subpoenas had already been issued.
The action follows a series of steps against skilled-worker immigration programmes. Last September, the Labour Department began an enforcement drive known as Project Firewall, while a White House proclamation imposed a one-time 100,000 US dollar fee on new H-1B petitions for workers hired from abroad.
The latest measures come as technology companies press the administration for lighter regulation of artificial intelligence. Microsoft chief executive Satya Nadella attended a White House AI summit on September 29.
