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Microsoft Adobe H-1B Visa Suspension Amid Fraud Claims — AI-generated representative image: A US government press conference announcing the suspension of tech firms from the H-1B visa programme.

Editorial Team

White House widens H-1B visa crackdown on tech firms and universities as Trump administration cites fraud

The United States government is suspending several major technology companies, including Microsoft and Adobe, from a skilled worker visa programme that offers foreign employees a path to permanent residency, citing allegations of fraud. The suspensions were announced Thursday as the White House intensifies pressure on employers to hire American workers.

Vice President JD Vance delivered the announcement at a news conference, singling out Microsoft directly. "Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," Vance said.

The move marks a significant escalation in the Trump administration's long-running scrutiny of the H-1B visa programme, which supporters of the president have argued undercuts American wages and is vulnerable to abuse. The action directly affects the technology sector, the largest user of H-1B visas, and could reshape how major employers recruit skilled foreign talent.

The crackdown also extends beyond corporations, with officials simultaneously announcing action against nine universities over alleged J-1 visa fraud involving international students and scholars.

Key Developments in the Visa Crackdown

Vance claimed that Microsoft laid off 6,000 American workers while obtaining 6,300 H-1B foreign work visas and nearly 3,000 permanent residencies, known as green cards. "You cannot lay off American workers and replace them with foreign indentured servants," Vance said.

Secretary of Labor Keith Sonderling confirmed that several additional information technology firms would also be suspended from the programme, including Indian tech giants Infosys and Tata Consultancy Services. The Department of Labor stated it had uncovered $22bn worth of visa fraud.

Officials also announced a crackdown on alleged J-1 visa fraud involving nine universities, including MIT, Harvard, Yale, Stanford and Cal State, over claims that institutions brought in international students to undercut US wages.

Background of the H-1B Programme

The H-1B visa programme is designed for high-skilled jobs that are difficult to fill with American workers. Technology companies are the biggest users, with nearly three-quarters of approvals going to workers from India. According to data from US Citizenship and Immigration Services, Microsoft ranks fifth among US employers using H-1B visas, while Amazon holds the top position.

The programme has long been a target of supporters of President Donald Trump, who argue that it undercuts American workers and is rife with abuse. A J-1 visa, by contrast, allows foreign nationals to enter the US temporarily for education or cultural programmes, and universities commonly use these visas to bring in international PhD candidates and scholars.

Official Claims and Company Response

Microsoft pushed back against Vance's assertions in a blog post, stating that "80 percent of the visas were to extend or change the status of existing Microsoft employees." The company added that remaining filings for new employees involved individuals already legally in the United States, representing only 1 percent of its US workforce, and were "not new arrivals to our country."

Vance also claimed that when schools employ an American researcher, that person earns $20,000 more than someone brought in under a J-1 visa. Data supporting this claim was not provided by the White House. Adobe did not respond to a request for comment.

Across the technology sector, more than 131,000 layoffs have occurred in 2026 alone, according to Layoffs.fyi, which tracks job cuts across the tech and startup industries.

Current Status and Next Steps

The suspensions were announced hours before President Trump was scheduled to honour Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation. The India-born Nadella was among six business leaders slated for recognition on Thursday, five of whom were foreign-born, including Tesla chief Elon Musk and Google co-founder Sergey Brin.

Following the news, Microsoft's stock fell 1.5 percent in late trading, while Adobe shares rose 2.1 percent. Further details on the scope and timeline of the suspensions have not yet been officially confirmed.