President Donald Trump’s administration is escalating its America First immigration crackdown, accusing major technology companies of exploiting foreign worker programs.
The latest enforcement action targets corporate access to employment-based green cards, not the underlying H-1B temporary visa program.
Vice President JD Vance announced the suspensions on October 8, alongside Labor Department officials who alleged widespread abuses harming American employees.
Eight companies face restrictions: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.
The administration says these employers improperly relied on foreign labor while qualified American workers struggled to secure technology jobs.
Labor Department Inspector General Anthony D’Esposito subsequently defended the crackdown, criticizing companies treating temporary immigration pathways as permanent staffing strategies.
“This is not a business model,” D’Esposito declared in remarks circulated online following the administration’s announcement.
“They are using the H-1B as a business model, and that’s wrong.”
“They’re taking American jobs away from American workers,” he added, sharpening the administration’s message to corporate employers.
D’Esposito argued that temporary foreign hiring should bridge genuine talent shortages rather than become a substitute for domestic recruitment.
“It was a temporary opportunity for them to put workers in place until they found a talented American,” he said.
He also pointed toward “plenty of people graduating schools and universities looking for a job” across the United States.
The restrictions concern Permanent Labor Certification, commonly called PERM, a critical step for many employment-sponsored permanent residency applications.
Officials said they would stop accepting new PERM applications and processing pending applications involving the eight suspended companies.
That decision could delay green card plans for affected foreign employees, even when those workers already hold valid visas.
Importantly, the action does not cancel existing H-1B visas or automatically revoke green cards previously issued to eligible workers.
Vance said the administration wants successful technology businesses, but insisted their expansion must deliver employment opportunities to American citizens.
Vance urged technology companies to keep expanding while prioritizing American workers for the jobs their businesses create.
Vance accused outsourcing intermediaries of facilitating abuse, arguing foreign workers can receive significantly lower compensation than Americans.
During his October 8 remarks, Vance cited pay gaps of $20,000 and $48,000 in different hiring arrangements.
Vance also criticized Microsoft layoffs while questioning why technology companies continued pursuing foreign recruitment and permanent residency sponsorship.
Microsoft defended its hiring practices, saying approximately 80 percent of its H-1B hires involved people already working for the company.
The company’s response illustrates the growing confrontation between Washington’s worker protection agenda and technology employers defending global recruitment.
Critics counter that broad restrictions could disrupt businesses, delay workers’ residency applications, and discourage skilled professionals from choosing America.
India has raised concerns because several affected outsourcing companies maintain substantial Indian operations and employ significant numbers of Indian professionals.
The dispute comes amid broader Trump administration measures to tighten oversight of employment visas and scrutinize potential American worker displacement.
A September presidential proclamation extended restrictions involving certain H-1B petitions and a $100,000 payment requirement through September 2027.
The White House argues those restrictions discourage employers from replacing American professionals with cheaper imported labor under temporary visa arrangements.
Officials also directed closer interagency scrutiny of applications connected with recent or anticipated layoffs of similarly situated American workers.
The White House reported a 92 percent reduction in H-1B registrations by the largest outsourcing firms after earlier restrictions.
Federal authorities additionally announced investigations involving nine universities, expanding scrutiny beyond private technology firms into institutions sponsoring international talent.
Investigations and suspensions do not by themselves establish criminal wrongdoing, and allegations against individual companies remain subject to examination.
For American technology workers, the central policy question is whether federal programs complement domestic hiring or undermine available opportunities.
This article may contain commentary which reflects the author's opinion.
