Donald Trump’s administration has barred Microsoft, Adobe, and other tech companies from sponsoring foreign workers for US residency, citing over-reliance on immigration programs and fraud.

Vice-president JD Vance accused these tech giants of abusing the H-1B visa program, stating that no US company had abused it more than Microsoft. Vance warned these firms they could not lay off American workers and replace them with foreign employees.

This move affects not just Microsoft but also six other IT outsourcing companies, including Cognizant, Infosys, and Tata Consultancy Services, who were suspended from the Permanent Labor Certification program. The Labor Department is investigating and serving subpoenas to these companies.

In response, the Indian government criticized Vance’s comments, calling them offensive and ignoring the contributions of Indian professionals to the US economy and innovation ecosystem. Meanwhile, Microsoft claims its US workforce is predominantly American, while Tata Consultancy Services states its strategy is to hire locally in the US.

This announcement is part of the Trump administration’s broader crackdown on immigration, following previous attempts to impose fees on H-1B visa applications. The White House’s fee attempt was blocked by a federal judge in June.