Trump Admin Cracks Down On Foreign Worker Fraud: Bans MSFT From H1-B Program, Probes 9 Colleges Over J-1 Visas, Hikes Costs For Students

The U.S. suspended Microsoft (MSFT) and Adobe (ADBE) from the H-1B visa program, alleging abuse. Microsoft disputes claims, stating 80% of H-1B applications were for existing employees. The administration also investigates nine universities, including Harvard, Yale, and Stanford, over visa program misuse.

Congress criticized PM Modi for not protecting Indian IT firms after the US suspended eight companies (Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, Capgemini) from the PERM green card program. The US accused these firms of misusing the system, potentially affecting future green card applications. Congress suggested India could respond using laws like the Digital Personal Data Protection Act, 2023.

The Trump administration suspended eight tech firms, including Microsoft, TCS, and Infosys, from the PERM green card process. Microsoft denies replacing US workers, while TCS expects minimal disruption. The crackdown also involves investigations into nine universities over J-1 visa fraud.

The US has frozen green card filings for Microsoft, Adobe, and six other IT firms, alleging visa abuse. Current H-1B workers can keep their status, but their path to permanent residency is blocked. Microsoft states 80% of its H-1B applications were for current employees. The freeze is part of a year-long escalation, with a $100,000 fee imposed on new H-1B petitions last year. The timing is notable as it comes before Microsoft's CEO receives a presidential award.

Microsoft and Adobe lost access to the US green card system's PERM process. Labor Secretary Keith Sonderling announced the suspensions, affecting new and pending applications. Microsoft stock fell 1.35%, while Adobe rose 3.56%. Both companies defended their hiring practices. Microsoft spent $32.49B on R&D and $11.97B on stock-based compensation in fiscal 2025, while Adobe spent $4.29B on R&D and $1.94B on stock-based compensation.

The US suspended eight IT firms, including Microsoft, Tata, Infosys, Wipro, HCL, Cognizant, Capgemini, and Adobe, from a green card program for foreign workers. The suspension is due to alleged abuse of the system, with claims that these companies have taken jobs from American workers. The Department of Labour will not process new or pending applications from these companies.