Trump Administration Suspends Microsoft and IT Firms from Green Card Program
The U.S. government suspended Microsoft and several IT outsourcing firms from the PERM green card program, alleging they replaced American workers with foreign labor.
The United States Department of Labor has indefinitely suspended Microsoft, Adobe, and six major IT outsourcing firms from the Permanent Labor Certification (PERM) program. The affected companies include Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. The suspension freezes the processing of pending employment-based green card applications and rejects new filings, effectively blocking a primary path to permanent residency for foreign workers.
Vice President J.D. Vance and Labor Secretary Keith Sonderling announced the move on October 8, 2026, citing active federal investigations into visa fraud. Vance specifically accused Microsoft of abusing the system, alleging the company laid off approximately 6,000 American workers in 2025 while securing over 6,000 H-1B visas and nearly 3,000 green cards. He characterized the practice as replacing citizens with "foreign indentured servants" to undercut domestic wages.
Microsoft disputed these claims, stating that 80% of its recent H-1B applications were for existing employees rather than new hires and that it pays H-1B staff compensation equal to comparable U.S. roles. In India, the industry body Nasscom defended the affected firms, arguing that immigration and talent mobility are distinct issues.
This crackdown coincides with other administration initiatives, including investigations into J-1 visa abuse at nine elite universities such as Harvard, Stanford, and MIT. Additionally, the Department of Homeland Security proposed new fees for the Optional Practical Training (OPT) program, including a $70,000 initial fee for nonimmigrant students. Notably, the announcements occurred as President Donald Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation.
