The United States has suspended permanent labour certification applications linked to Microsoft, Adobe and major IT services companies as part of a widening crackdown on alleged immigration fraud and the protection of American jobs. US Vice President JD Vance announced the move on October 8, 2026, also naming Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini among the affected companies. The administration said the suspension would remain in place until further notice, potentially disrupting a key pathway to permanent residency for skilled foreign workers.
Vance accused Microsoft of misusing the immigration system, citing workforce reductions alongside its use of H-1B visas and green cards. Labour Secretary Keith Sonderling said the government would stop accepting new and processing pending permanent labour certification applications involving the listed companies. Microsoft responded that most of its H-1B applications in the previous fiscal year involved extending or changing the status of existing employees, adding that it paid comparable wages to H-1B workers and other employees performing similar jobs. India’s IT industry body Nasscom said Indian technology companies in the US had significantly reduced their dependence on H-1B visas.
Separately, the administration announced investigations into nine universities, including Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology, over alleged misuse of exchange-visitor visas and possible violations affecting American workers. Labour investigators have reportedly issued subpoenas to examine potential visa abuse, foreign influence and financial relationships involving federally funded research. The investigations have raised concerns about the broader impact on international education and research, with experts warning that tighter visa policies could affect universities’ finances and the US economy. The measures mark a significant escalation in the Trump administration’s efforts to tighten skilled-worker immigration and increase scrutiny of foreign nationals and institutions.
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