President Donald Trump's administration has suspended Microsoft from a programme that allows companies to apply for green cards for workers already in the United States on H-1B visas, accusing the technology giant of fraud. The announcement was made on Thursday by Vice President JD Vance and other senior officials as the administration stepped up its criticism of work and study visa programmes.

The move came hours before Trump was due to present the National Medal of Technology and Innovation to Microsoft chief executive Satya Nadella at an event honouring science and technology figures. In the same announcement, Vance also criticised universities over their use of J-1 visas for international students and took aim at information technology outsourcing firms.

Vance said the programme from which Microsoft has been suspended requires companies to advertise jobs in the US before applying to the Department of Labour for a green card for a foreign worker, to show that no American worker is available. "They'll put an in a small-town newspaper. They'll go out there and say that 'We have advertised for a position with our company, and nobody is responding to it.' And they will use that lack of response to then go and replace American workers with what is effectively foreign indentured servants," he said.

He added, "There has been no company in the United States, unfortunately, that has used this system more than Microsoft." Microsoft, based in Redmond, Washington, near Seattle, did not immediately respond to a request for comment.

Vance said Microsoft laid off 6,000 American workers last year, while also obtaining 6,300 H-1B visas and nearly 3,000 green cards. "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants," he said at a White House news conference.

"Our message to Microsoft is: You're a great American company, but you've got to hire great American workers."

He said H-1B workers are effectively foreign indentured servants because they have to leave the country if they lose their job and are paid less than Americans in the same role. The H-1B programme has long been criticised by Trump supporters, who say it hurts American workers and is open to abuse. The visas are meant for highly skilled jobs that are difficult to fill with American workers. Technology companies are the biggest users of the programme, with nearly three-quarters of approvals going to workers from India.

The announcement also came a day after the administration launched another move affecting international students and their ability to work in the US. On Wednesday, the Department of Homeland Security proposed a USD 70,000 fee for international students seeking to work in the country. Under the proposed rule, schools would have to pay the fee for each student taking part in the Optional Practical Training programme, or OPT, which allows students to work in jobs linked to their field of study during or after their course.

Vance also accused universities of misusing the J-1 visa programme, which allows international visitors to come to the US temporarily for work and study exchange programmes. He named nine universities that he said should face further investigation for J-1 visa fraud, saying they used the programme in greater proportions than similar institutions.

Overall, the administration used Thursday's announcement to target Microsoft's hiring practices, the H-1B and green card system, and the use of J-1 and student work programmes by universities, while repeating its argument that such routes are being used at the expense of American workers.