Trump Is Targeting the Visa Pipeline That Keeps Big Tech Running

The Trump administration today suspended Microsoft and major information technology companies from a key employment-based green-card programme and launched investigations into nine leading U.S. universities, expanding its crackdown on immigration that it says is aimed at preventing fraud and protecting American workers.

The Labor Department said it would halt new and pending permanent labor certification applications involving Microsoft, software maker Adobe and six other IT services companies. Vice President JD Vance also announced investigations into universities including Harvard, Yale and Stanford over alleged misuse of exchange-visitor visas.

The moves mark a significant escalation in President Donald Trump’s efforts to restrict immigration, potentially disrupting a major route to permanent residency for foreign technology workers while intensifying scrutiny of international researchers and students.

“There has been no company in the United States, unfortunately, that has abused the system more than Microsoft,” Vance said, accusing the company of laying off 6,000 American workers last year while benefiting from 6,300 H-1B temporary worker visas and nearly 3,000 green cards.

His remarks came hours before Trump honoured technology executives for their contributions to the United States, including Microsoft CEO Satya Nadella. Nadella previously held an H-1B visa, as did billionaire Elon Musk, who was also honoured. Three other executives recognised at the event were immigrants.

Nadella thanked Trump for the medal in a post on X, saying he would continue to advance technology and drive American prosperity.

Microsoft is the largest filer of applications under the permanent labor certification, or PERM, programme, according to U.S. Labor Department data. The process requires employers to demonstrate that hiring a foreign worker will not adversely affect the wages or employment prospects of U.S. workers.

Microsoft said about 80% of the H-1B applications it filed in the last fiscal year were intended to extend or change the status of existing employees rather than recruit new workers. The company announced in July that it would cut 4,800 jobs, equivalent to about 2.1% of its global workforce.

Labor Secretary Keith Sonderling said the suspension also covered Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.

“We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.

He said the companies had sought nearly three million foreign workers since 2009 and received more than 230,000 H-1B visa approvals and more than 100,000 permanent labor certifications.

Amazon.com was the largest employer of approved H-1B beneficiaries in fiscal 2026, followed by Tata Consultancy Services, Infosys, Apple and Microsoft, according to U.S. immigration data.

Vance said the suspensions would remain in place “as long as it needs to,” adding that the administration wanted the companies to change their hiring practices.

He alleged that some employers advertised jobs in ways that discouraged applications from American workers before using the lack of applicants to justify hiring foreign workers at lower wages.

Microsoft said it paid H-1B employees the same as other employees performing comparable work.

Adobe, Cognizant, Infosys, HCL Technologies, Wipro and Capgemini did not immediately respond to requests for comment. Tata Consultancy Services declined to comment.

Nasscom, India’s information technology industry association, said Indian technology companies operating in the United States had significantly reduced their reliance on H-1B visas and that relatively few of their employees pursued green cards through the PERM process.

The latest action follows a wider enforcement drive launched by the Labor Department in September last year under the name “Project Firewall”. The initiative came as a White House proclamation imposed a one-time $100,000 fee on new H-1B petitions for workers hired from abroad.

The programme has opened about 200 cases and resulted in millions of dollars in penalties, according to the administration. Vance also announced investigations into nine universities over what officials described as the misuse of exchange-visitor visas to undermine American wages.

The institutions include Harvard University, Yale University, Stanford University, Brown University and the Massachusetts Institute of Technology. Labor Inspector General Anthony D’Esposito said subpoenas had already been served.

Investigators will examine whether foreign influence, improper financial relationships or visa abuse are compromising federally funded research, D’Esposito said.

The investigations could have implications for universities that depend on international students and researchers for tuition revenue, research funding and specialised expertise.

“It could have an enormous economic impact on the whole US economy,” said Sarah Spreitzer, a vice president at the American Council on Education, which represents college and university presidents. International students historically spent $40 billion a year while in the United States, she said.

The probe adds to the administration’s ongoing dispute with Harvard over international students and immigration compliance. Last year, the Department of Homeland Security subpoenaed the university over alleged misconduct by international students and its compliance with immigration law.

Harvard described the subpoena as “unfounded retribution” but said it would comply to the extent required by law.

The administration’s shifting visa policies have also affected other universities. Columbia University paused admissions to one of its journalism programmes after a sharp decline in international applications.

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