Microsoft and Adobe Suspended from H-1B Visa Program Amid Fraud Allegations

Microsoft and Adobe have been suspended from the H-1B visa program, Vice President JD Vance announced Thursday, amid accusations that the tech giants and others have extensively abused the system to hire cheaper labor.

"This is a great day for American workers, because we are taking some very concrete actions to cut down on some of the H-1B and J-1 visa fraud that we've been tracking over the past several months," Vance said at a press conference. He alleged that companies and outsourcing firms are using the visa program to replace American workers with foreign counterparts, who are allegedly mistreated and used to undercut domestic wages.

Microsoft was singled out, with Vance claiming the company laid off 6,000 American workers last year while benefiting from H-1B visas. Adobe and several major outsourcing firms were also affected by the suspension. The tech industry relies heavily on H-1B workers, who earn on average 16% less than their American counterparts, according to research.

The move is part of a broader effort by the administration to rein in the H-1B program, which allows companies to hire foreign workers for specialized roles when domestic talent is unavailable. The number of approved H-1B visas has more than doubled since 2000, reaching approximately 400,000 in 2024. Concerns have been raised about the program's impact on American jobs and its role in national security for discouraging citizens from science and technology careers.

Microsoft's stock saw a slight decline following the announcement, while Adobe's stock increased. Vance also stated that several universities are being investigated for alleged J-1 visa fraud.