Trump Administration Suspends Microsoft and IT Firms from Green Card Program
The U.S. government suspended Microsoft, Adobe, and six IT outsourcing firms from the PERM program, alleging they replaced American workers with foreign labor.
The Trump administration suspended Microsoft, Adobe, and six major IT outsourcing firms—Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini—from the Permanent Labor Certification (PERM) program on October 8, 2026. Labor Secretary Keith Sonderling announced the freeze on new and pending green card applications, citing active federal investigations into systemic fraud and the displacement of American workers. Vice President JD Vance specifically targeted Microsoft, alleging the company laid off 6,000 Americans in 2025 while securing over 6,000 H-1B visas, characterizing the practice as replacing citizens with "foreign indentured servants."
Microsoft disputed these claims, stating that 80% of its recent H-1B filings were for existing employees and that new hires represent only 1% of its U.S. workforce. Tata Consultancy Services pledged compliance, noting its PERM applications were in single digits over the last two years.
In a simultaneous crackdown, Labor Inspector General Anthony D'Esposito launched investigations into nine elite universities, including Harvard, Stanford, and MIT, for alleged J-1 visa abuse. Additionally, the Department of Homeland Security proposed new fees for Optional Practical Training (OPT), including a $70,000 initial fee for nonimmigrant students.
The Ministry of External Affairs of India condemned the move and described Vance's "indentured servants" terminology as "deeply offensive" due to its colonial connotations. The diplomatic tension coincides with President Donald Trump awarding Microsoft CEO Satya Nadella the National Medal of Technology and Innovation, despite the administration's public accusations against the company.
