Microsoft faces PERM suspension over H-1B allegations

# Trump Administration Suspends Microsoft and Major IT Firms From Green Card Program

The Trump administration has suspended Microsoft and several other major technology companies from the federal labor certification program used to sponsor foreign workers for permanent residency, accusing employers of misusing employment-based immigration pathways. Vice President JD Vance announced the action on October 8 as the administration expanded its scrutiny of hiring practices involving foreign workers.

The suspension also covers Adobe and major IT services companies, including Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini, according to the Labor Department. The move could affect foreign professionals whose employers are seeking green cards through the employment-based immigration system.

Vance singled out Microsoft, alleging that the company had laid off approximately 6,000 American employees while obtaining 6,300 H-1B visas and nearly 3,000 green cards. He accused the technology company of relying on foreign workers while reducing its U.S. workforce.

“There has been no company in the United States, unfortunately, that has abused the system more than Microsoft,” Vance said during a White House event.

He argued that technology companies should continue to invest and expand in the United States while giving greater priority to American workers. “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said.

Vance also referred to H-1B employees as “foreign indentured servants” as he criticized practices he said allowed companies to replace American workers with foreign hires. These statements represent the administration’s allegations against Microsoft. The company did not immediately respond to requests for comment, Reuters reported.

## PERM Suspension Could Disrupt Green Card Applications

The action centers on the Permanent Labor Certification, commonly known as PERM, which is an important step in the employment-based green card process. Employers generally must demonstrate to the Department of Labor that hiring a foreign worker will not adversely affect the wages, working conditions or employment opportunities of U.S. workers.

After receiving labor certification, employers can move forward with subsequent stages of the permanent residency application. Labor Secretary Keith Sonderling said the department would stop accepting new PERM applications and processing pending applications involving the companies covered by the suspension.

The measure does not, by itself, directly revoke the H-1B status of workers already holding those visas. Instead, it could interrupt or delay their employer-sponsored route to permanent residency, potentially creating uncertainty for employees who have been working in the United States while awaiting green cards.

Microsoft is the largest filer of PERM applications, according to data compiled by Permtrack.app and cited by Reuters. The company was also among the largest employers of approved H-1B beneficiaries in fiscal 2026, based on U.S. Citizenship and Immigration Services data cited in the report.

## Major Indian IT Services Companies Included

The suspension extends to several prominent IT services providers with substantial U.S. operations and foreign-worker recruitment programs. Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini were among the companies identified by the Labor Department.

Indian IT companies have long been significant participants in the H-1B visa program, which allows U.S. employers to hire eligible foreign professionals for specialized occupations. Reuters has reported that Infosys, TCS, Wipro and HCL Technologies have historically ranked among the program’s major users.

The suspension could affect employees whose employers are pursuing permanent residency on their behalf, particularly professionals who have spent years working in the United States while progressing through the employment-based immigration system. TCS declined to comment, while other named companies did not immediately respond to Reuters’ requests for comment.

## Administration Opens J-1 Visa Investigations at Universities

Alongside the corporate suspensions, the administration announced investigations into nine universities over the alleged misuse of J-1 exchange visitor visas. The institutions named include Harvard University, Yale University, Stanford University, Brown University and the Massachusetts Institute of Technology.

Vance alleged that some institutions were using exchange visitor visas to bring international participants into positions in ways that could undermine wages for American workers. Labor Department Inspector General Anthony D’Esposito said subpoenas had already been issued as part of the investigations.

The administration said the inquiries would examine whether foreign influence, financial relationships or visa-related practices were affecting federally funded research. The allegations remain the subject of the investigations.

## Broader Immigration Enforcement Effort

The latest action follows other efforts by the Trump administration to tighten employment-based immigration rules. These include a $100,000 fee on certain new H-1B petitions and Project Firewall, a Labor Department initiative focused on enforcing compliance with H-1B requirements.

Together, the measures place additional scrutiny on technology companies and IT services providers that depend on international talent. For foreign workers, the latest PERM suspensions could create new obstacles in the green card process, even if their existing work authorization remains valid.

The impact will depend on how the suspensions are implemented and how long they remain in effect. For employers and employees already navigating lengthy permanent residency procedures, the action introduces further uncertainty into the U.S. employment-based immigration system.