Trump Administration Suspends Microsoft and IT Firms from Green Card Program
The U.S. government suspended Microsoft and several IT outsourcing firms from the Permanent Labor Certification program while launching fraud probes into nine elite universities.
The Trump administration suspended Microsoft Corporation, Adobe, and several large IT outsourcing firms from the Permanent Labor Certification (PERM) program on October 8, 2026. Labor Secretary Keith Sonderling announced the move, which halts the processing of employer-sponsored green cards for these companies. The suspended firms include Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini.
Vice President JD Vance accused Microsoft of abusing the H-1B visa system to replace American staff with foreign labor, noting the company laid off 6,000 Americans last year while utilizing 6,300 H-1B visas and nearly 3,000 green cards. Attorney General Todd Blanche stated the administration would not tolerate discrimination against American workers. The crackdown occurred as President Donald Trump simultaneously awarded a national science and technology medal to Microsoft CEO Satya Nadella.
In a parallel effort to combat visa fraud, Labor Inspector General Anthony D’Esposito launched investigations into nine elite universities, including Harvard, Stanford, MIT, and Yale, for potential abuses of the J-1 cultural exchange visa. The administration alleges these institutions may be using international students to undercut U.S. wages or compromise federally funded research.
Additionally, the Department of Homeland Security proposed a new rule requiring universities to pay a $70,000 fee for each nonimmigrant student in the Optional Practical Training (OPT) program, with a $30,000 fee for renewals. DHS officials stated the measure aims to curb pay-to-stay schemes and reduce the influx of cheap foreign labor.
