The Trump administration announced Thursday that it was suspending Microsoft, Adobe and several other technology companies from a program allowing skilled foreign workers to obtain permanent US residency, citing alleged visa fraud.
Vice President JD Vance said the action was part of a broader effort to protect American workers, while officials also announced investigations into universities accused of misusing international exchange programs.
Vance accused Microsoft of laying off 6,000 American employees while securing approximately 6,300 H-1B visas and nearly 3,000 green cards for foreign workers.
He argued that companies were exploiting immigration programs to replace domestic employees with lower-cost foreign labor.
Microsoft disputed the allegations, stating that 80 percent of its visa filings involved extending or changing the status of existing employees.
The company said remaining applications concerned workers already legally residing in the United States and represented approximately 1 percent of its American workforce.
Labor Secretary Keith Sonderling identified Indian technology companies Infosys and Tata Consultancy Services among additional firms facing suspension.
The Department of Labor also claimed to have uncovered $22 billion in visa fraud.
According to Layoffs.fyi, technology companies have eliminated more than 131,000 positions during 2026.
Microsoft ranks fifth among American employers using H-1B visas, while Amazon ranks first.
Officials simultaneously announced scrutiny of nine universities, including Harvard, Yale, Stanford, MIT and Cal State, over alleged misuse of J-1 exchange visas.
Vance claimed universities paid American researchers approximately $20,000 more than comparable international workers recruited through the program.
J-1 visas permit temporary entry for educational and cultural exchanges, including academic research appointments.
The administration's announcement preceded a scheduled White House ceremony honoring Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation.
Microsoft shares declined 1.5 percent following the announcement, while Adobe gained 2.1 percent in late Thursday trading.
The measures extend the administration's scrutiny of employment-based immigration programs, which critics argue disadvantage American workers, while supporters maintain they help employers recruit specialized international talent.