Vice President JD Vance speaks at a White House news conference about visa fraud in Washington, Oct. 8, 2026. The U.S. government has suspended Microsoft and seven other technology companies from a federal program that allows employers to grant green cards to foreign workers. The other companies affected are Adobe, Capgemini, Cognizant, HCL, Infosys, Tata and Wipro, according to Reuters.
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The decision was announced by Vice President JD Vance, who accused the companies of fraud. Secretary of Labor Keith Sonderling said his department would stop accepting new applications from the eight companies and would not process any pending applications. The suspension affects the Permanent Residency Authorization Program (PERM), which is administered by the Department of Labor. This program is typically the first step in obtaining a green card through employment, requiring employers to prove that there is no suitable American worker available for the position.
PERM is a critical tool for many technology companies that rely on international talent to fill specialized jobs, especially in fields like software development and engineering. The suspension of this program for these companies means they will have to look for alternatives to retain the talent they need. At the same time, the H-1B visa program for skilled foreign workers remains unaffected, and green cards already issued will remain valid.
This means that H-1B visa workers at these companies can keep their jobs, but their employers cannot initiate a green card process for them through PERM.
Microsoft, as one of the world’s largest technology companies, has been particularly affected by this decision. Vice President JD Vance singled out Microsoft specifically, noting that the company laid off 6,000 American workers last year while being approved for over 6,000 H-1B visas. “Our message to Microsoft is: You’re a great American company, but you need to hire great American workers,” Vance said.
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He also claimed that for every employee Microsoft laid off, the company hired “one and a half foreign indentured servants.”
Microsoft disagreed with that view, saying through a spokesperson that most of its U.S. employees are American and that 80% of the company’s roughly 6,000 H-1B applications last year were for people already working there. The disagreement highlights the challenges large companies face in balancing hiring local and international talent, especially in an environment where regulators are increasing pressure to protect local jobs.
The action is part of a broader crackdown on work visas. Cognizant was already suspended from PERM in September, Labor Inspector General Anthony D'Esposito announced. The decision demonstrates the government's commitment to strictly monitor the use of visa programs and ensure that companies comply with regulations.
At the same press conference, JD Vance said the administration would investigate nine universities, including Harvard, Yale and Stanford, accusing them of abusing a program that brings foreign students to the U.S. The investigation underscores broader concerns about the abuse of educational and work visas, which could affect the influx of international talent into the United States.
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The PERM suspension for these companies and the university research indicate a shift in U.S. policy toward tighter immigration regulation, aimed at protecting domestic workers and preventing abuse of visa programs. The consequences of these policies could be significant for both companies and workers, affecting hiring strategy and the U.S.’s ability to attract and retain international talent.
