On Thursday, the Trump administration froze some green card applications from Microsoft, Adobe, and major IT outsourcing firms, and launched an investigation into nine top universities, widening a visa crackdown that the government says targets fraud and protects American jobs.

These two actions represent the broadest crackdown to date on skilled worker immigration programs, potentially cutting off a common path for foreign tech workers to obtain permanent residency, while also putting some of America's leading research universities on notice.

"Unfortunately, no company in America abuses this system more than Microsoft," said Vice President JD Vance.

He said the company laid off 6,000 American workers last year while benefiting from 6,300 H-1B temporary work visas and nearly 3,000 green cards.

The announcement regarding the permanent labor certification process, known as PERM, came just hours before Trump was scheduled to award Microsoft CEO Satya Nadella the National Medal of Technology and Innovation.

Under PERM, which is required for most employment-based green cards, employers must prove that hiring a foreign worker will not harm the wages or job opportunities of American workers.

According to Department of Labor data, Microsoft is the largest filer of PERM applications.

The company said in a statement that about 80% of the H-1B petitions it filed in its last fiscal year were to extend or change the status of existing employees, rather than to hire new workers.

In July, the company said it would cut 4,800 positions, or about 2.1% of its global workforce.

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

"We will not accept any new permanent labor certification applications involving these companies, nor will we process any pending applications," Sonderling said.

He said that since 2009, these companies have sought nearly 3 million foreign workers and obtained more than 230,000 H-1B visa approvals and more than 100,000 permanent labor certifications.

According to US immigration data, Amazon.com was the top employer by approved H-1B beneficiaries for fiscal year 2026, followed by Tata Consultancy Services, Infosys, Apple, and Microsoft.

Vance said the suspension would last "as long as necessary," adding that the administration wants these companies to change their hiring practices.

He said some companies post ineffective job advertisements and then cite a lack of applicants to justify hiring lower-paid foreign workers.

Microsoft said in its statement that its H-1B employees are paid the same as other employees doing comparable work.

"The immediate financial impact on big tech companies may be relatively limited for now, but the long-term impact on innovation and competitiveness could be much greater," said Ken Mahoney, CEO of Mahoney Asset Management.

Nasscom, India's IT industry body, said Indian tech companies in the US have significantly reduced their reliance on H-1B visas, and relatively few of their employees seek green cards through the PERM process.

The crackdown broadens.

The suspension is the latest in a series of measures targeting skilled worker programs.

Last September, the Department of Labor launched an enforcement initiative called "Project Firewall," while a White House proclamation imposed a one-time $100,000 fee on new H-1B applications for hiring workers from abroad.

During President Donald Trump's second term, companies have faced increasing pressure to keep jobs and production in the United States rather than moving them overseas.

The move comes as the administration maintains closer ties with tech leaders, who are lobbying for looser AI regulation.

Universities under scrutiny.

Vance also said nine universities, including Harvard, Yale, and Stanford, will be investigated over what the government calls abuse of exchange visitor visas to suppress American wages.

The nine schools also include Brown University and MIT.

Labor Department Inspector General Anthony D'Esposito said subpoenas have been served.

D'Esposito said investigators will examine whether foreign influence, improper financial relationships, or visa abuse is harming federally funded research.

"This could have a huge economic impact on the entire US economy," said Sarah Spreitzer, vice president of the American Council on Education, which represents university presidents.

She said international students have historically spent $40 billion a year in the United States.

The investigation deepens the administration's long-running battle with Harvard over foreign students.

Last year, the Department of Homeland Security issued a subpoena to the school regarding alleged misconduct by international students and their compliance with immigration law.

Harvard called the subpoena "baseless retaliation" but said it would comply to the extent required by law.