WASHINGTON — The U.S. government has stopped processing new and pending permanent labour-certification applications involving Microsoft, Adobe and several major information-technology outsourcing companies, expanding its crackdown on skilled-worker immigration.

The action affects the PERM process, a required first step for many employment-based green cards. It does not appear to cancel existing H-1B temporary-work visas, Reuters reported.

Officials allege abuse; investigations remain open

Vice President JD Vance and Labor Secretary Keith Sonderling accused the companies of using immigration programs to replace American workers. The administration named Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini alongside Microsoft and Adobe.

Those are government allegations, not findings by a court or regulator. Microsoft said roughly 80 per cent of its H-1B filings in the last fiscal year extended or changed the status of current employees rather than hiring new workers. It also said H-1B employees receive the same pay as comparable employees. Tata declined to comment to Reuters, while the other named companies did not immediately respond.

Nine universities also face scrutiny

Officials said subpoenas had been served as part of investigations into nine universities, including Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology. The administration alleges possible misuse of J-1 exchange-visitor visas and says investigators will examine foreign influence, financial relationships and federally funded research.

No violation has been established. The American Council on Education warned that the probes and rapidly changing visa rules could have broad economic effects, while supporters of skilled-worker programs argue they help the United States attract global talent.

What the suspension changes

The Labor Department said it will not accept new PERM applications or process pending ones involving the named companies for an unspecified period. PERM generally requires an employer to show that hiring a foreign worker will not harm the wages or job prospects of U.S. workers.

The measure could delay or block a common route to permanent residency for affected employees, including international technology workers already in the United States. The investigations may produce further evidence or policy changes, but the announced suspensions should not be treated as proof of fraud.

Sources: Reuters, October 8; The Associated Press, October 8.

Lead image: Microsoft corporate logo via Wikimedia Commons, used for identification; not an image of the government announcement, affected workers or university investigations.