Visa Crackdown SLAMS Microsoft, Adobe

The White House froze green-card sponsorships for several tech giants after alleging widespread abuse of work-visa rules that sidelined American workers.

Story Highlights

The Labor Department halted PERM processing for Microsoft, Adobe, and major IT outsourcers amid fraud probes.
Vice President JD Vance said Microsoft laid off thousands while using visa programs, citing abuse of the system.
Nine elite universities face review over alleged misuse of exchange-visitor visas to undercut wages.
The move escalates a long-running fight over whether H-1B and PERM harm or help U.S. workers.

Labor Department Halts Green-Card Certifications for Major Employers

The Department of Labor paused new and pending Permanent Labor Certification applications for Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Secretary of Labor Keith Sonderling said the agency will not accept or process filings tied to these firms while investigations proceed. The decision blocks a key step for foreign workers moving from temporary status to permanent residency. The freeze follows earlier Inspector General actions and relies on existing labor rules to hold cases during probes.

Vice President JD Vance framed the action as a protection of American jobs. He accused tech companies of abusing the system to replace or undercut U.S. workers. The administration highlighted Microsoft as a top concern, citing layoffs combined with heavy use of visa and green-card channels. Reporting attributed to federal officials and Vance said Microsoft shed about 6,000 U.S. jobs while continuing immigration filings, a pairing they argue signals systemic misuse. Microsoft has pushed back in other coverage, defending business decisions.

Universities Face Scrutiny Over Exchange-Visitor Visa Practices

The administration said nine universities, including Harvard, Yale, Stanford, Brown, the University of Pittsburgh, the University of California Davis, the California Institute of Technology, Arizona State University, and the Massachusetts Institute of Technology, will be reviewed for alleged misuse of exchange-visitor visas. Officials said the concern is wage undercutting and displacement in campus-linked programs. Agencies described the effort as part of a broader anti-fraud push spanning technology, outsourcing, and higher education employers.

Under federal labor rules, the Permanent Labor Certification process, known as PERM, requires employers to test the U.S. labor market before seeking green cards for foreign workers. Critics have long argued employers can design job ads or screening to avoid hiring qualified Americans. Government watchdogs and court guidance stress that employers may reject U.S. applicants only for lawful, job-related reasons. A Department of Labor Inspector General report has flagged persistent noncompliance risks in the program.

Why This Crackdown Resonates With Workers Across Parties

Workers on both the right and the left have complained for years that visa middlemen and large firms bend the rules, depressing wages and narrowing paths to good jobs. Federal documents have cited fraud indicators in the H-1B program, such as underpayment or misuse of job sites. Independent research and policy briefs have described wage theft and workforce replacement patterns in some cases, reinforcing public anger toward both corporate practices and federal oversight gaps. These patterns shaped the administration’s tougher stance.

🇺🇸 US VISA CRACKDOWN: A WARNING SHOT FOR INDIAN IT PROFESSIONALS

Yesterday’s move by the Trump administration has raised fresh concerns for thousands of Indian technology professionals building their future in America.

The US has suspended Microsoft, Adobe, TCS, Infosys, Wipro,… pic.twitter.com/xtzvHxCB8d

— Samriddhi (समृद्धि) (@SunnyIndia06) October 8, 2026

The freeze creates real uncertainty for foreign workers awaiting decisions and for teams that rely on them. It also pressures firms to show strong recruitment of U.S. talent and clean internal controls. The administration says this is not a blanket attack on legal immigration but a targeted enforcement wave to restore program integrity. Companies may appeal or seek rapid resolution, but for now, the message from Washington is clear: follow the rules, or lose access to the pipeline.