U.S. officials suspended Microsoft, Adobe and major IT firms from the Permanent Labour Certification Programme, accusing them of exploiting a system that has allowed hundreds of thousands of foreign workers to bypass American workers. The move targets companies that have sought nearly three million foreign workers since 2009, with Microsoft alone responsible for 6,300 H-1B visas and 3,000 green cards despite laying off 6,000 American workers.
Vice-President J.D. Vance cited Microsoft's practice of replacing American workers with foreign indentured servants, noting that for every worker laid off, the company replaced them with one and a half foreign workers. The administration also investigated nine universities for potential J-1 visa fraud, accusing them of misusing programs that allow international students to work in the U.S.
The suspensions mark the broadest crackdown yet on skilled-worker immigration programmes, potentially limiting a path to permanent residency for foreign tech workers. The administration says the move protects American jobs and addresses fraud, though companies like Microsoft have denied allegations, stating that 80% of their H-1B applications were for extending current employees' status, not hiring new workers.