WASHINGTON, D.C.: The Trump administration froze some green-card filings by Microsoft, Adobe and several major IT outsourcing companies on October 8, potentially blocking a common route to permanent residency for thousands of foreign technology workers.

The Labor Department said it would not accept new or process pending permanent labor certification applications involving Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.

The administration also opened investigations into nine universities, including Harvard, Yale and Stanford, over what it called misuse of exchange-visitor visas to undercut American wages.

The twin actions mark the broadest strike yet against skilled-worker immigration programs as the administration widens a visa crackdown it says targets fraud and American job losses.

"Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," Vice President JD Vance said.

"We will not accept any new or process any pending permanent labor certification applications involving these companies," Labor Secretary Keith Sonderling said.

Under the Labor Department's permanent labor certification process, known as PERM, which is required for most employment-based green cards, employers must show that hiring a foreign worker will not harm the wages, working conditions, or job opportunities of U.S. workers. Approved applications then go to U.S. Citizenship and Immigration Services.

The freeze does not appear to directly affect current H-1B visa holders, which allow companies to employ foreign workers temporarily. But it could block a common route employers use to sponsor those workers for permanent residency.

Indian IT firms such as Infosys, TCS, Wipro and HCL, along with Cognizant, have long been among the biggest users of H-1B visas.

Amazon.com was the largest employer of approved H-1B beneficiaries in fiscal 2026, followed by Tata Consultancy Services, Infosys, Apple and Microsoft, according to USCIS data. Microsoft is also the largest filer of PERM applications, according to Permtrack.app, which compiles Labor Department disclosure data.

Microsoft, Adobe, Cognizant, Infosys, HCL Technologies, Wipro and Capgemini did not immediately respond to requests for comment. Tata Consultancy Services declined to comment.

The suspensions are the latest in a series of steps against skilled-worker programs. In September last year, the Labor Department launched an enforcement drive called "Project Firewall," as a White House proclamation imposed a one-time US$100,000 fee on new H-1B petitions for workers hired from abroad.

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

The action comes despite closer ties between the administration and tech leaders, who are lobbying for lighter AI regulation. Microsoft CEO Satya Nadella was among the executives at a White House AI summit on September 29.

The nine universities under investigation also include Brown and the Massachusetts Institute of Technology. Vance accused them of using J-1 exchange-visitor visas to bring in international students and undercut American wages. Labor Inspector General Anthony D'Esposito said the Department of Labor had already served subpoenas.

"We will investigate whether foreign influence, improper financial relationships, or visa abuse are compromising federally funded research," D'Esposito said. "If an American university is breaking the law to save $1 while exposing American research to a foreign adversary, that is not academic excellence. It's institutional betrayal."