The US suspends Microsoft, Adobe, Cognizant, Infosys, and others from a program that lets skilled foreign workers gain permanent residency, citing alleged fraud (Dan Rosenzweig-Ziff/Reuters)

The US government has suspended Microsoft, Adobe, and several other major IT firms from a green card programme designed for skilled foreign workers to gain permanent residency, officials announced on Thursday. The move comes after allegations of fraud and as part of a strategy to encourage companies to hire more Americans.

US Vice President JD Vance stated, "You’re a great American company, but you’ve got to hire great American workers." He added, "There has been no company in the United States that has abused this system more than Microsoft." Secretary of Labour Keith Sonderling echoed similar sentiments, saying, "We will not accept any new or process any pending permanent labour certification applications involving these companies."

The Permanent Labour Certificate (PERM) process requires employers to secure certification from the Department of Labour, proving no qualified, willing, or available US worker is available for a specific job. This step is mandatory before filing petitions for most employment-based green cards. Vance also announced an investigation into nine universities, including Harvard, Yale, and Stanford, for allegedly hiring international students to undercut American wages.

Labour Inspector General Anthony D’Esposito revealed that subpoenas have already been served, stating, "If an American university is breaking the law to save $1 while exposing American research to a foreign adversary, that is not academic excellence. It’s institutional betrayal."