Nicolai Haugsted
Trump administration launches a sweeping crackdown that could leave thousands of foreign tech workers facing an uncertain future in America.
America’s technology industry has spent decades recruiting talent from around the world, relying on foreign engineers, programmers and researchers to help build some of its most successful companies.
But securing a future in the United States is becoming considerably more complicated for international workers.
President Donald Trump’s administration is tightening its grip on employment-based immigration, arguing that major corporations have been taking advantage of visa programs at the expense of American workers.
Now, some of Silicon Valley’s biggest names – companies that contribute with billions of dollars in US taxes – are facing restrictions that could leave thousands of foreign employees uncertain about their prospects of obtaining permanent residency.
And the administration isn’t stopping with the technology industry, according to Reuters.
Microsoft faces particularly harsh criticism
On Thursday, the US government announced that it would suspend a crucial part of the employment-based green card process for Microsoft, Adobe and several major IT services companies.
The restrictions target the permanent labor certification process, commonly known as PERM.
Employers typically need this certification before sponsoring foreign employees for employment-based green cards. They must demonstrate that hiring a foreign worker will not adversely affect American workers’ wages or employment opportunities.
The administration will no longer accept new applications or process pending ones involving the affected companies.
Vice President JD Vance singled out Microsoft for particularly sharp criticism.
“There has been no company in the United States, unfortunately, that has abused the system more than Microsoft,” Vance said.
According to the vice president, Microsoft laid off approximately 6,000 American workers last year while benefiting from 6,300 H-1B temporary worker visas and nearly 3,000 green cards.
Microsoft disputed the broader implication that it was using immigration programs to undercut American employees.
The company explained that approximately 80 percent of its H-1B applications during the previous fiscal year involved extending or changing the immigration status of existing employees rather than recruiting new workers.
It also maintained that employees holding H-1B visas receive the same compensation as colleagues performing comparable work.
Tech companies hit with sweeping restrictions
Microsoft is far from the only corporation affected by the administration’s latest measures.
Labor Secretary Keith Sonderling confirmed that the suspension also applies to Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
“We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.
The administration argues that the companies have relied excessively on foreign labor.
According to Sonderling, the affected employers have collectively sought nearly three million foreign workers since 2009, securing more than 230,000 H-1B approvals and over 100,000 permanent labor certifications.
Vance also accused some businesses of manipulating recruitment procedures.
He claimed that employers sometimes publish job advertisements that attract few qualified applicants, then use the apparent shortage of American candidates to justify hiring foreign workers at lower wages.
The vice president said the restrictions would remain in place “as long as it needs to.”
His message to the affected companies was that their recruitment practices must change.
Tata Consultancy Services declined to comment on the announcement, while several other companies did not immediately respond to Reuters.
India’s IT industry association, Nasscom, argued that Indian technology companies operating in the United States have already substantially reduced their dependence on H-1B visas.
Awkward timing for Microsoft’s CEO
The announcement came on a particularly remarkable day for Microsoft’s leadership.
Just hours after Vance accused the company of abusing the immigration system, Trump honored several prominent technology executives for their contributions to the United States.
Among those recognized was Microsoft CEO Satya Nadella.
Nadella himself previously held an H-1B visa, the same category of temporary work authorization now facing increasing scrutiny from the administration.
Elon Musk, another recipient of the honor, also previously held an H-1B visa.
Three other executives recognized at the event were immigrants.
Nadella thanked Trump for the recognition in a post on X, expressing his commitment to advancing technology and contributing to American prosperity.
The contrast highlighted the administration’s complicated relationship with an industry that has benefited enormously from international recruitment.
Microsoft, meanwhile, remains the largest filer of PERM applications, according to Labor Department figures.
The company announced in July that it would eliminate approximately 4,800 jobs, representing about 2.1 percent of its global workforce.
Prestigious universities are next on the list
The administration’s latest immigration measures extend well beyond corporate offices.
Federal authorities are also investigating nine prominent American universities over allegations involving exchange-visitor visas.
Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology are among the institutions facing scrutiny.
Officials suspect that some universities may have misused visa programs in ways that disadvantaged American workers.
Labor Department Inspector General Anthony D’Esposito confirmed that subpoenas had already been issued.
Investigators will examine potential visa abuses, inappropriate financial relationships and foreign influence that could compromise federally funded research.
The allegations have not been established as findings of wrongdoing.
Nevertheless, the investigations represent another significant escalation in the administration’s confrontation with some of America’s most prestigious academic institutions.
Universities warn of serious economic consequences
The crackdown has prompted concern among higher education representatives, who argue that international students and researchers provide substantial benefits to the American economy.
Sarah Spreitzer, vice president of the American Council on Education, warned that the administration’s policies could have consequences extending far beyond university campuses.
“It could have an enormous economic impact on the whole US economy,” she said.
According to Spreitzer, international students have historically spent approximately $40 billion annually while studying in the United States.
Universities also rely on international researchers for scientific projects, technological innovation and federally supported academic work.
The new investigations follow an already contentious relationship between the Trump administration and Harvard.
Last year, the Department of Homeland Security subpoenaed Harvard over alleged misconduct involving international students and questions about compliance with immigration law.
Harvard described that action as “unfounded retribution” but indicated that it would comply with legal requirements.
Other universities have also experienced consequences from the changing immigration environment.
Reuters recently reported that declining international applications contributed to Columbia University’s decision to pause admissions to one of its journalism programs.
