US Suspends Microsoft and Tech Giants From Green Card Program Over Labor Rules
Washington, Friday, 9 October 2026.
The Trump administration has suspended Microsoft, Adobe, and six major IT outsourcing firms from sponsoring foreign employees for green cards. Federal officials cite active investigations into alleged visa program abuse, asserting that corporate reliance on foreign labor suppresses domestic tech wages and displaces American workers.
Announcement of Suspension and Scope
On Thursday, 8 October 2026, Vice President JD Vance announced the immediate suspension of Microsoft and Adobe from the Permanent Labor Certification program, also known as PERM [3][4]. The U.S. Department of Labor confirmed it would no longer accept or process new or pending permanent labor certification applications for the two technology giants [2]. Alongside Microsoft and Adobe, the administration targeted six major information technology outsourcing firms, including Cognizant, Infosys, Tata, Wipro, HCL Technologies, and Capgemini [5]. Labor Secretary Keith Sonderling stated that the suspension covers permanent labor certification applications involving all eight companies, citing multiple active federal investigations [3][5]. This disciplinary action represents a substantial policy shift targeting corporate employment-based immigration in the technology sector, creating immediate labor compliance challenges for major enterprise employers across the United States [1].
Administration Rationale and Allegations
Vice President Vance alleged that the suspended companies abused the visa system by prioritizing foreign workers over Americans, claiming the program is used to replace domestic talent with foreign indentured servants [2][4]. The administration asserts that companies exploit the PERM program to sideline American workers, arguing that reliance on foreign labor suppresses domestic tech wages [4][5]. Officials highlighted data indicating that H-1B workers earn, on average, $20,000 less than U.S. counterparts in identical positions [2]. Vance emphasized that the suspension would last as long as necessary until the companies demonstrate a commitment to hiring American workers first [4]. The program requires companies to advertise job openings domestically to the Department of Labor to verify the need for foreign workers due to a lack of American talent [1].
Corporate Response and Industry Data
Microsoft defended its practices, stating that it only files H-1B petitions for individuals who meet rigorous standards and pays them the same as others in comparable roles [2]. The company clarified that 80% of its H-1B filings in the past year were for extensions or status changes for existing employees, asserting they are not new arrivals to the country [1][3]. In 2026, Microsoft filed 21,706 H-1B petitions, while Amazon led the sector with 35,426 petitions [3]. Microsoft’s filing volume represented 61.271 percent of Amazon’s total petition count for the period [3]. Despite the suspension, President Trump awarded the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella shortly after the announcement, highlighting the complex relationship between the administration and the tech sector [1].