The Trump administration is suspending Microsoft, Adobe and several of the world's largest IT outsourcing firms from a key program that helps foreign workers get green cards, accusing the companies of abusing the system at the expense of American workers.

Vice President JD Vance and Labor Secretary Keith Sonderling announced the move Thursday at a news conference focused on H-1B and J-1 visa fraud. Officials also revealed a new investigation into nine major U.S. universities, including Harvard, Yale and Stanford.

What the Suspension Means

The companies are being blocked from the Permanent Labor Certification Program, known as PERM. Employers use it to show the Labor Department that no qualified, willing and available American worker can fill a job. That certification is required before most employment-based green card petitions can be filed.

Besides Microsoft and Adobe, Sonderling named six IT services companies: Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini. He said the department "will not accept any new or process any pending permanent labor certification applications involving these companies," Reuters reported.

Sonderling said Microsoft and Adobe were suspended because of multiple active federal investigations. Officials have not said how long the suspensions will last.

According to Sonderling, the companies have requested nearly 3 million foreign workers since 2009, receiving more than 230,000 H-1B approvals and more than 100,000 PERM certifications.

Vance Takes Aim at Microsoft

Vance singled out Microsoft, claiming the tech giant laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas and nearly 3,000 green cards. He accused the company of replacing laid-off workers with foreign employees and called it a "scandalous system," according to Fox Business.

At the same time, Vance called Microsoft "a great American company" and said the goal was to change its behavior, not to punish it. "The message to Microsoft is you've got to hire American workers," he said.

Microsoft and Adobe did not immediately respond to requests for comment. None of the allegations against the companies have been proven.

H-1B visas allow U.S. employers to hire foreign workers in specialized fields such as technology and engineering. Many of those workers later seek permanent residency through employer-sponsored green cards, which is where the PERM process comes in. Vance said the administration is working to reform both the H-1B program and the J-1 program, which covers exchange visitors such as students and researchers.

Universities Under Investigation

Labor Department Inspector General Anthony D'Esposito announced a J-1 visa fraud investigation involving nine schools: Harvard, Yale, Stanford, Brown, MIT, Caltech, the University of Pittsburgh, UC Davis and Arizona State. Subpoenas have already been served.

Vance claimed the universities brought in international students in ways that undercut American wages. D'Esposito said investigators will look at whether foreign influence, improper financial ties or visa abuse are compromising federally funded research, calling such conduct "institutional betrayal."

Attorney General Todd Blanche warned that criminal charges could follow against any companies or individuals found to have broken the law. He said the Justice Department is investigating companies that favor foreign workers over Americans.

Part of a Wider Immigration Push

The crackdown is the latest effort by the Trump administration to reshape legal immigration. Earlier this year, the White House announced a major change to the green card process requiring most foreigners to apply from outside the country. The administration has also pushed a $100,000 fee on new H-1B visas, which has faced legal challenges.

Vance urged Congress to reform the H-1B program and said the administration would keep acting in the meantime.

Investors largely shrugged off the news. Microsoft shares rose about 0.2% and Adobe gained about 0.4% Thursday, while Cognizant slipped about 0.7% and Infosys fell about 2.2%.

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