The Trump administration has suspended Microsoft, Adobe and six other major technology companies from a federal program that helps skilled foreign workers obtain permanent residency in the United States.

Vice President JD Vance accused the companies of abusing the system by laying off American employees while relying on foreign workers, saying the move is intended to protect U.S. jobs.

The suspensions also affect Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini, with the Labor Department halting new and pending labor certification applications involving these firms.

Microsoft defended its hiring practices, saying about 80% of its H-1B visa applications in the last fiscal year were for existing employees rather than new hires, CNBC has reported.

The decision does not cancel existing H-1B visas, but it could make it more difficult for affected foreign workers to obtain green cards through their employers, while the administration also investigates nine universities over alleged visa abuses.