The Trump administration announced Thursday that it is suspending green-card processing for Microsoft and several major IT outsourcing firms, while also opening investigations into nine leading U.S. universities.
Companies hit by the suspension
Microsoft was singled out by Vice President JD Vance, who said the firm had laid off 6,000 American workers last year while receiving 6,300 H-1B visas and nearly 3,000 green cards. The administration framed those numbers as evidence of a hiring pattern that favors foreign labor over domestic talent.
The labor department’s data show Microsoft files the most PERM applications, the labor-certification step required for most employment-based green cards. This volume places the company at the center of the agency’s scrutiny.
In a statement, the company said about 80% of its recent H-1B filings were to extend or change status for existing employees rather than to hire new staff. It emphasized that the majority of those workers are already on the payroll and that the filings are routine adjustments.
Labor Secretary Keith Sonderling added that the freeze also covers Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. He noted these firms have sought nearly three million foreign workers since 2009, receiving over 230,000 H-1B approvals and more than 100,000 permanent labor certifications.
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According to immigration data, Amazon.com employed the most approved H-1B beneficiaries in fiscal 2026, followed by Tata Consultancy Services, Infosys, Apple and Microsoft. The ranking highlights the concentration of high-skill visas within a small group of tech giants.
Government rationale and enforcement actions
Vance said the suspensions will remain “as long as it needs to,” urging companies to alter hiring practices that rely on low-paid foreign workers when U.S. candidates are unavailable. He argued that the policy is intended to protect jobs for American workers.
He claimed some firms post ineffective job ads and then cite a lack of applicants to justify hiring abroad. The administration suggests that such tactics undermine the integrity of the visa system.
Microsoft counters that its H-1B employees receive salaries comparable to U.S. workers in similar roles. The company also pointed to internal wage data that it says meets federal standards.
India’s IT industry body Nasscom reported that Indian tech firms in the United States have reduced reliance on H-1B visas. It also noted that few of their workers have pursued green cards through the PERM process, suggesting a shift in recruitment strategy.
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University investigations
The labor inspector general, Anthony D’Esposito, has issued subpoenas to nine universities—Harvard, Yale, Stanford, Brown, the Massachusetts Institute of Technology, and others—for possible misuse of exchange-visitor visas. Subpoenas were issued in September last year as part of an enforcement drive called “Project Firewall,” and they focus on alleged irregularities in visa sponsorship.
Investigators will examine whether foreign influence, improper financial ties or visa abuse are compromising federally funded research at these institutions. The review aims to determine if any violations have affected the integrity of grant-funded projects.
Sarah Spreitzer, a vice president at the American Council on Education, warned that the probe could have a substantial economic impact. She noted that international students historically spend about $40 billion annually in the United States, supporting local economies across many states.
Harvard previously called a related subpoena “unfounded” but said it would comply within legal limits.
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