Trump Administration Suspends Tech Giants from Green Card Program
The U.S. government suspended Microsoft, Adobe, and several Indian IT firms from the PERM program, alleging they replaced American workers with cheaper foreign labor.
The United States Department of Labor indefinitely suspended eight major technology and outsourcing firms from the Permanent Labor Certification (PERM) program on October 8, 2026. The affected companies include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. Labor Secretary Keith Sonderling stated the freeze follows federal investigations into systemic fraud, alleging these firms displaced hundreds of thousands of American workers by requesting nearly 3 million foreign workers since 2009.
Vice President JD Vance specifically targeted Microsoft, claiming the company laid off 6,000 Americans in 2025 while securing over 6,000 H-1B visas. Vance characterized the practice as replacing citizens with "foreign indentured servants." Microsoft disputed these claims, asserting that 80% of its recent H-1B applications were for existing employees and that its new H-1B hires represent only 1% of its U.S. workforce.
In a contradictory sequence of events, President Donald Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation during a White House event the same day the suspensions were announced. Simultaneously, the administration launched probes into nine elite universities, including Harvard and Stanford, for J-1 visa abuse, and the Department of Homeland Security proposed new fees for Optional Practical Training (OPT) students.
The Ministry of External Affairs of India condemned Vance's "foreign indentured servants" terminology as "deeply offensive" and "unwarranted." While the Indian government noted that existing H-1B visas remain valid, it warned that the PERM suspension hinders the path to permanent residency for skilled professionals.
