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The Trump administration suspended several major IT companies and tech giants from the Permanent Labour Certification programme.
The Department of Labour alleged the firms abused the system to hire foreign workers instead of Americans.
Microsoft, Adobe, and several Indian IT firms were said to be covered by the move.
Vice President JD Vance and Labor Secretary Keith Sonderling announced the action.
Why it mattersThe restrictions could disrupt staffing for major Indian IT companies and affect cross-border work opportunities.
More context
An immigration attorney said the suspension does not cancel existing H-1B visas.
The same attorney said it may delay Green Card processes and complicate matters for workers approaching their six-year limits.