On 8 October 2026, the Trump administration suspended eight major IT firms, including Microsoft, from the US Permanent Labor Certification (PERM) green card programme. The action also included the launch of a visa fraud strike team and the opening of investigations into nine prominent US universities. The measures target alleged abuse of employment-based immigration and exchange-visitor visa programmes, affecting thousands of skilled foreign workers and students.According to Deccan Herald, the PERM programme, which allows US employers to sponsor foreign workers for permanent residency, was suspended for Microsoft, Cognizant, Capgemini, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Adobe. The US Department of Labor cited alleged fraud and concerns that these companies were replacing American workers with foreign employees as the primary reasons for the suspension.As reported by The Indian Express, the announcement came just hours before President Donald Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation. Vice President JD Vance, at a news conference, accused Microsoft of misusing the visa system, stating that the company laid off 6,000 US workers while obtaining 6,300 H-1B visas and nearly 3,000 green cards in the previous year. Vance also called for investigations into several universities, including Stanford and MIT, for alleged visa fraud.Trump's Birthright Citizenship Stand May End 'The American Dream' For ImmigrantsFurther details revealed that the administration’s actions extended to criticism of universities’ use of J-1 exchange-visitor visas, with Vance suggesting that nine institutions, such as Harvard, Yale, and MIT, merited investigation for potential misuse. The PERM suspension requires companies to demonstrate a lack of qualified American applicants before sponsoring foreign workers, a process Vance claimed was being manipulated.As coverage revealed, Labor Secretary Keith Sonderling confirmed that no new or pending PERM applications from the affected companies would be processed. The administration also opened probes into nine elite universities, intensifying scrutiny of both corporate and academic visa practices.“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vice President JD Vance stated during the announcement.Political reactions to the suspensions were sharply divided. Allies of President Donald Trump praised the crackdown as necessary to protect American jobs, while Democratic leaders, including California Governor Gavin Newsom and Representative Pramila Jayapal, criticised the move as detrimental to America’s ability to attract global talent and undermining the legal immigration system.Industry responses indicated that Indian IT firms have reduced reliance on H-1B visas in favour of local hiring, according to statements from NASSCOM and Microsoft. Microsoft clarified that 80% of its H-1B applications were for existing employees, not new hires, and emphasised its commitment to hiring American workers and maintaining high compensation standards.A new visa fraud strike team was also announced by the Department of Labor Inspector General Anthony D’Esposito. The team will coordinate investigations across agencies, pursue fugitives linked to alleged fraud, and work with the Justice Department to prosecute offenders. The initiative is part of a broader White House effort to eliminate fraud in employment-based immigration programmes.“We will follow the money, uncover the schemes, and work with attorney general Todd Blanche to prosecute criminals,” Inspector General D’Esposito said regarding the strike team’s mandate.In addition to the PERM suspension, recent enforcement actions included the proposal of a $103,265 H-1B visa fee and subpoenas served to universities under investigation. The freeze does not directly affect current H-1B visa holders but blocks a key pathway to permanent residency for many skilled foreign workers, particularly those from India.Analysis showed that the visa fraud strike team’s announcement and the PERM suspension are distinct but related elements of the administration’s broader immigration enforcement strategy. The investigations into universities and IT firms are ongoing, with further updates expected from US authorities and affected employers.US Pauses Visa Appointments Worldwide Amid Trump's Immigration CrackdownNote: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.