US suspends Microsoft, Infosys, Tata, Wipro from green card programme over alleged H-1B abuse

The Trump administration has suspended Microsoft from a US programme that allows companies to seek green cards for foreign workers employed in the country on H-1B visas.

Vice President JD Vance and US Labour Department officials announced the action on Thursday, accusing Microsoft and other major technology and outsourcing companies of abusing the H-1B visa system at the expense of American workers.

The administration said the suspension followed an ongoing investigation into the company's use of the visa system. Vance said the government had decided to suspend Microsoft's participation in the PERM programme, which is a key step for employers seeking permanent residency for foreign workers.

"Thanks to an ongoing investigation, we have decided to suspend the PERM program for Microsoft, which means they will no longer be able to take those H1-Bs and apply for permanent resident status within the United States of America," Vance said in a post on X.

The vice president also accused Microsoft of using foreign workers in a way that undercut US wages and displaced American employees.

"There has been no company in the United States, unfortunately, that has abused the system more than Microsoft," Vance said at a White House news conference.

He claimed Microsoft laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas and nearly 3,000 green cards.

"For every worker that Microsoft laid off, they replaced that worker with 1½ foreign indentured servants," Vance said.

Microsoft had not immediately responded to requests for comment.

Other IT companies also targeted

US Labour Secretary Keith Sonderling said Microsoft was not the only company facing action.

The administration also announced the suspension of several other companies from the programme, including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini and Adobe.

The move expands the administration's scrutiny of companies that rely heavily on foreign workers and comes as the Trump administration continues its wider push to tighten the H-1B visa system.

Universities also under investigation

The Labour Department also announced investigations into nine universities over allegations involving international students and US wages. The institutions include Harvard, Yale and Stanford.

Labour Department Inspector General Anthony D'Esposito said subpoenas had already been served as part of the investigations.

The administration has increasingly focused on alleged misuse of programmes involving foreign workers and international students, arguing that such practices can affect employment opportunities and wages for American workers.