Trump administration freezes green cards for Microsoft, IT firms, probes universities
The US suspended Microsoft and other IT firms from a key green-card program, accusing them of abusing the system. Vice President Vance claimed Microsoft laid off US workers while hiring foreign workers. The suspension also covers Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. The Labor Department is investigating nine universities, including Harvard, Yale, and Stanford, for alleged misuse of exchange-visitor visas.
How this was made

The 30-second read
Why it matters
Regulatory action creates immediate hiring uncertainty for affected companies and may pressure their stock prices.
Market read
The freeze targets the tech sector's talent pipeline, likely prompting short‑term stock pressure for the named firms.
What to watch
Potential for policy reversal under future administration and companies' ability to use alternative visa categories.
Background
The Trump administration announced a freeze on green‑card applications for major U.S. tech firms, citing abuse of the program, and opened investigations into nine top universities.
Ticker impact
Microsoft was suspended from the green‑card program by the Trump administration.
likely downward pressure as investors price in regulatory risk
The suspension directly affects Microsoft's ability to retain foreign talent, which could impact project timelines and cost structure.
Adobe was also suspended from the green‑card program.
potential short‑term sell pressure
Regulatory action may limit Adobe's access to skilled foreign workers, affecting growth prospects.
Cognizant was listed among the firms barred from processing green‑card applications.
likely modest decline as market assesses hiring risk
The suspension could increase labor costs and delay client deliveries.
Infosys was included in the green‑card suspension list.
downward pressure pending further guidance
Regulatory constraints on visa pathways affect Infosys's US delivery capabilities.
Wipro was among the firms barred from green‑card applications.
likely modest sell pressure
Regulatory limits could raise costs and affect project timelines.
Market effects
IT services and software sector faces heightened regulatory scrutiny, potentially tightening hiring pipelines.
U.S. tech stocks may see short‑term pressure; foreign ADRs could be similarly affected.
The crackdown signals broader U.S. immigration policy shifts, influencing global talent flows.
Counterpoint
The suspension may be short‑lived; firms could adapt via domestic hiring, limiting long‑term impact.
Key entities
- companyMicrosoft
Largest filer of PERM applications, now suspended.
- companyAdobe
Software maker included in suspension.
- companyCognizant
IT outsourcer barred from green‑card processing.
- companyInfosys
Indian IT firm affected by the freeze.
- companyTata Consultancy Services
IT services giant listed in the suspension.


