Trump Administration Suspends Green Card Sponsorships for Major Tech Firms and Probes Universities

The Trump administration announced a significant escalation in its crackdown on immigration fraud on Thursday, suspending employment-based green card sponsorships for eight major technology firms and launching probes into nine prestigious universities over alleged misuse of student exchange visas.

During a White House press conference, Vice President J.D. Vance accused the affected companies of abusing H-1B visa and green card processes to replace American workers with what he described as “foreign indentured servants.” Officials stated that Microsoft and Adobe, along with six IT outsourcing firms, would be barred from applying or processing pending permanent labor certification applications.

Other companies included in the suspension are Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. Labor Secretary Keith Sonderling confirmed that the Department of Labor would not accept any new or process any pending applications involving these firms due to ongoing federal investigations.

Sonderling cited data showing that these companies had sought to hire nearly 3 million foreign workers, secured more than 230,000 H-1B visa approvals, and obtained over 100,000 permanent labor certifications since 2009. In fiscal year 2026, Amazon led in approved H-1B beneficiaries, followed by Tata Consultancy Services, Infosys, Apple, and Microsoft. Microsoft was also the largest filer of PERM applications through June 2026, the first step in the permanent labor certification process which requires employers to prove foreign hires do not harm U.S. workers’ wages or jobs.

Vance specifically targeted Microsoft, stating, “There has been no company in the United States, unfortunately, that has abused the system more than Microsoft.” He noted that the company laid off 6,000 American workers last year while simultaneously obtaining 6,300 H-1B visas and nearly 3,000 green cards. Vance added that Microsoft announced plans to cut an additional 4,800 jobs in July.

Microsoft responded by clarifying that 80% of its H-1B applications in the last fiscal year were for extending or changing the status of current employees rather than hiring new workers. The company stated that filings for new employees accounted for only 1% of its U.S. workforce and asserted that it pays H-1B employees comparably to other workers. Vance dismissed these defenses, accusing companies of deliberately posting ineffective job advertisements to justify hiring foreign labor.

In a separate but related move, the administration announced investigations into nine universities: Harvard, Yale, Stanford, Brown, the University of Pittsburgh, the University of California, Davis, the California Institute of Technology, Arizona State, and the Massachusetts Institute of Technology. Vance alleged that these institutions were using the J-1 visa program to undercut the wages of American graduate students and researchers.

Labor Inspector General Anthony D’Esposito emphasized the severity of the probe, stating, “I don’t care how prestigious a university thinks it is. Break the law and screw the American people, and I will personally cuff you in the university square.” Harvad, Brown, Pitt, and MIT acknowledged receipt of subpoenas, while Stanford and UC Davis pledged cooperation. Arizona State affirmed its compliance with U.S. law, and Yale indicated it would review documents upon receipt.

Immigration experts warn the suspensions could adversely affect workers. Lidice Samper, an immigration lawyer, noted that employees nearing the six-year limit on H-1B visas face the greatest risk. Doug Rand, a former senior adviser at U.S. Citizenship and Immigration Services, criticized the policy as “incoherent,” arguing that blocking green cards leaves H-1B workers more dependent on their employers.

The moves follow a broader pattern of immigration enforcement under the Trump administration. In August, the administration proposed a $103,265 fee for H-1B petitions, though a federal judge struck down a similar $100,000 fee in June, ruling it an unauthorized tax. Additionally, the Department of Homeland Security recently proposed a $70,000 fee for Optional Practical Training programs.

These actions coincide with declining international enrollment in U.S. universities. Data indicates that new J-1 research scholars fell 27% last year, and international student enrollment dropped 17% in fall 2025, resulting in over $1.1 billion in lost revenue. The administration has also attempted to tighten rules for international students and scrutinize university compliance, including previous subpoenas issued to Harvard in July 2025.