America Freezes Green Cards for Microsoft and Major IT Firms, Opens Probes Into Nine Top Universities

WASHINGTON — The United States has suspended Microsoft, software maker Adobe and several major IT outsourcing firms from a key green-card program, while opening investigations into nine of the country's top universities. Officials describe the moves as a crackdown on fraud and an effort to protect American jobs.

The two actions, announced Thursday, October 8, are the broadest step yet against America's skilled-worker immigration system. They could cut off a common path to permanent residency for thousands of foreign tech workers.

"There has been no company in the United States, unfortunately, that has abused the system more than Microsoft," Vice President JD Vance said.

What Changed

Employer-sponsored green cards let U.S. companies petition for foreign workers, often people already working in America on temporary visas, to become permanent residents. Suspending a company from the program stops new sponsorships for its employees. That leaves many workers' long-term status in the country uncertain.

The administration says the program has been misused to replace American workers with cheaper foreign labor. Critics of the move say it punishes skilled professionals who have followed the rules and could push talent to rival economies.

Universities on Notice

Alongside the corporate suspensions, the government opened probes into nine leading research universities. These schools rely heavily on international graduate students and researchers, many of whom later move into the U.S. tech workforce. The probes show that scrutiny now reaches beyond the private sector into American higher education.

Why It Matters

Technology is one of America's most important economic engines, and its companies have long argued that access to global talent is essential to competing with China and other powers. The measures arrive weeks before the 2026 midterm elections, as immigration and jobs remain central issues for voters.

Affected workers, companies and universities are expected to respond in the coming days, and legal challenges are widely anticipated. The New Dispensation will continue to follow this developing story.

Source reporting: Reuters, October 8, 2026.