Trump administration – Microsoft, Adobe, and several major IT firms have been suspended from a federal program aiding skilled foreign workers in obtaining permanent residency.
The doors to permanent residency just slammed shut for some of the world’s largest technology firms. In a sweeping move announced Thursday. the Trump administration barred Microsoft. Adobe. and several major IT companies from participating in a key program designed to help skilled foreign workers secure green cards. citing allegations of fraud.
For companies like Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro, the impact is immediate. Secretary of Labor Keith Sonderling confirmed that the government has halted all new and pending permanent labor certification applications involving these firms. The decision forces a sudden. high-stakes collision between the tech sector’s reliance on international talent and a federal administration intent on reshaping the domestic workforce.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” U.S. Vice President JD Vance said during a Thursday news conference.
Microsoft, which found itself the primary target of the administration’s rhetoric, pushed back on the fraud claims. In a statement, the company emphasized that the vast majority of its U.S. staff are American citizens. Of the roughly 6. 000 H-1B visa applications the company submitted in the last fiscal year. 80% were strictly to extend or change the status of existing employees. not to recruit new personnel from abroad. The remaining filings. the company noted. represented individuals already residing legally in the United States. amounting to just 1% of its total U.S. workforce. Microsoft maintains that it adheres to rigorous visa standards and compensates H-1B holders on par with their domestic counterparts.
The friction here centers on the H-1B visa category. a program historically utilized by tech firms to fill highly specialized roles. With nearly three-quarters of all approved visas going to workers from India. the program has long been a pillar of the industry’s staffing strategy. The government’s move to sever these companies from the green card pipeline effectively freezes the path to permanent residency for thousands of these specialized employees.
Beyond the corporate fallout, the administration is widening the scope of its scrutiny. Vice President Vance announced that officials are now investigating nine universities, including Harvard, Yale, and Stanford. The administration claims these institutions are abusing programs that allow international students into the country. alleging that these pathways are being used to drive down wages for American workers.
As of Thursday afternoon, Adobe had not responded to requests for comment. The policy remains a stark pivot, leaving thousands of foreign-born professionals in legal limbo as the administration intensifies its focus on the intersection of labor, immigration, and corporate practice.
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