The administration of United States President Donald Trump has suspended technology giant Microsoft from using a federal programme that allows companies to sponsor certain foreign workers for permanent residency.

The decision affects Microsoft’s access to the Permanent Labor Certification (PERM) programme, which is generally an important step for employers seeking to sponsor foreign employees for U.S. green cards.

Vice President JD Vance announced the move on Thursday, accusing Microsoft of abusing the employment-based immigration system and arguing that the programme should protect American workers.

Vance cited Microsoft’s use of H-1B visas and the company’s workforce reductions as part of the administration’s justification for the suspension. However, reports noted that Vance did not provide evidence that Microsoft had specifically replaced laid-off American workers with foreign employees through the programme.

The suspension does not prevent Microsoft from employing people who already hold H-1B visas. However, it could make it more difficult for some foreign workers to move from temporary employment status to permanent U.S. residency.

The action also affects several other major technology and IT companies, including Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.

The move is part of the Trump administration’s broader crackdown on employment-based immigration and alleged abuse of U.S. visa programmes.

Microsoft had not immediately issued a public response to the suspension at the time of the announcement.

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