The United States government has suspended several major technology companies, including Microsoft and Adobe, from a federal programme that provides a pathway to permanent residency for skilled foreign workers. The move comes amid allegations of visa fraud and increased pressure from the White House for firms to prioritize American employees.
US Vice President JD Vance announced the suspensions during a news conference on Thursday. He directed a sharp message at Microsoft, stating that the company must hire American workers despite its status as a major domestic employer.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said. He highlighted that the Redmond-based tech giant laid off 6,000 American workers while simultaneously obtaining 6,300 H-1B visas and nearly 3,000 green cards for foreign staff.
Visa program suspension targets tech giants
Vance argued that the current system allows companies to replace domestic staff with foreign labourers who have limited rights. “You cannot lay off American workers and replace them with foreign indentured servants,” he said. He noted that visa holders are completely subordinate to their employers and must leave the country if they lose their jobs.
The Department of Labor also announced that several other major information technology firms would face suspensions. Among those named were Indian technology giants Infosys and Tata Consultancy Services. Labor Secretary Keith Sonderling stated that the department had uncovered $22 billion worth of visa fraud across the sector.
“Today we are protecting something far more valuable than any dollar amount. We are protecting the American worker,” Sonderling said.
Neither Adobe nor Microsoft responded to requests for comment regarding the suspensions. Following the announcement, Microsoft shares dropped 7.5 percent. Adobe stock rose 4 percent in midday trading.
Universities face scrutiny over J-1 visas
The crackdown extended beyond corporate employers to higher education institutions. Officials announced an investigation into nine universities, including MIT, Harvard, Yale, Stanford, and Cal State, for alleged fraud involving J-1 visas.
The J-1 visa allows foreign nationals to enter the US temporarily for education or cultural exchange programmes. Universities typically use these visas to bring in international PhD candidates and scholars. The White House alleges that some institutions exploit these visas to undercut US wage standards.
Vance claimed that American researchers employed by universities earn $20,000 more annually than those brought in under the J-1 programme. Al Jazeera requested data to support this wage comparison, but the White House did not provide a response.
The broader context for these actions includes significant job cuts across the technology sector. According to Layoffs.fyi, the industry has seen more than 131,000 layoffs in 2026 alone. The administration views the visa suspensions as a necessary step to ensure that foreign labour is not used to displace American workers during this period of contraction.
Source: Al Jazeera
