The US government is suspending Microsoft, Adobe and several other large IT firms from a programme that allows skilled foreign workers to gain permanent residency, senior US officials announced on Thursday, citing alleged fraud and as part of an effort to push companies to hire more Americans.

“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” US Vice President JD Vance said. “There has been no company in the United States, unfortunately, that has abused this system more than Microsoft.”

Secretary of Labour Keith Sonderling added that some of the largest IT firms in the world would also be suspended from that programme, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

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

Microsoft did not immediately respond to a request for comment.

Under the Permanent Labour Certificate (Perm) process, employers seek certification from the Department of Labour that there is no qualified, willing or available US worker for a specific job. It’s a step required before filing petitions for most employment-based green cards.

Vance also said nine universities, including Harvard, Yale and Stanford, would be investigated for allegedly bringing in international students to undercut American wages.

Labour Inspector General Anthony D’Esposito said subpoenas had already been served.

“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.”