Washington: The US government has suspended Microsoft, Adobe and several major global IT companies from a programme that allows skilled foreign workers to obtain permanent residency in the United States, citing alleged fraud and efforts to encourage the hiring of American workers.

The announcement was made by JD Vance, US Vice President, and Keith Sonderling, Secretary of Labor.

“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said.

Sonderling said the suspension also applies to Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

“We will not accept any new or process any pending permanent labor certification applications involving these companies,” he said.

Under the Permanent Labor Certification (PERM) process, employers must obtain certification from the Department of Labor confirming that there are no qualified, willing or available US workers for a specific position before filing most employment-based green card petitions.

Microsoft did not immediately respond to a request for comment.

The administration also announced investigations into nine universities, including Harvard, Yale and Stanford, over allegations that international students were being used to undercut American wages.

Anthony D’Esposito, Labor Inspector General, said subpoenas had already been issued.

“We will investigate whether foreign influence, improper financial relationships, or visa abuse are compromising federally funded research,” D’Esposito said.

“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.”

The measures form part of the administration’s broader push to prioritise the employment of American workers and increase scrutiny of immigration and labour programmes.