Trump Bars Microsoft From Green-Card Program Over Visa Fraud

Quick Answer

The Trump administration has indefinitely suspended Microsoft from the Labor Department's PERM program, accusing the tech giant of abusing H-1B visas to replace American workers with cheaper foreign labor. Vice President JD Vance announced the move Thursday, saying Microsoft laid off roughly 6,000 US workers last year while employing 6,300 non-citizens brought in on H-1B visas.

Vice President JD Vance announced the Microsoft suspension Thursday at the White House Fraud Task Force press conference. Photo: The White House / Emily J. Higgins, public domain, via Wikimedia Commons.

The Trump administration has barred Microsoft from the federal program that lets employers sponsor foreign workers for permanent US residency, accusing the company of gaming the immigration system to swap American employees for cheaper labor from abroad.

The announcement came Thursday from Vice President JD Vance at a Fraud Task Force press conference inside the Eisenhower Executive Office Building on the White House campus in Washington. It marks the administration's most aggressive move yet against a single American tech giant in its immigration crackdown — and it landed on the very day President Donald Trump was set to honor Microsoft CEO Satya Nadella with a National Medal of Technology and Innovation.

How Trump barred Microsoft from the green-card program

Vance said the federal government is suspending Microsoft indefinitely from the Labor Department's PERM program — the permanent labor certification process that lets companies move H-1B visa workers onto a path to green cards and permanent US residency.

"The H-1B visa is how the people get into the United States in the first place, and then a PERM program is how those employees stay," Vance said. The suspension means Microsoft can no longer file new applications or have pending ones processed for foreign workers seeking permanent status.

The move followed an investigation by the anti-fraud task force Vance chairs. According to the administration, that probe found Microsoft laid off roughly 6,000 American workers last year while at the same time employing 6,300 non-citizens it had brought to the US on H-1B visas.

"There has been no company in the United States, unfortunately, that has abused the system more than Microsoft," Vance said.

The fraud allegations against Microsoft

Administration officials alleged Microsoft misrepresented its needs when applying for permanent residency for foreign workers. The PERM program is meant for roles requiring what Vance called "hyper-specialized" skill sets that cannot easily be found among American workers.

Instead, officials accused the company of using the program primarily to replace skilled American employees with similarly qualified immigrants it could pay less to do the same work.

"The fraud is that they're making representations when applying for this program that are fundamentally illegitimate and therefore ultimately illegal," Vance said.

Microsoft did not immediately respond to a request for comment, according to CNN.

An awkward day for Microsoft's CEO

Microsoft's Redmond, Washington campus. The company was suspended indefinitely from the PERM green-card program Thursday. Photo: CC BY-SA 2.0, via Wikimedia Commons.

The timing raised eyebrows immediately. In a separate White House ceremony on Thursday, President Trump was due to award Satya Nadella the National Medal of Technology and Innovation — the nation's highest honor for technological achievement, given for outstanding contributions to America's economic, environmental and social well-being.

Vance downplayed any contradiction. "Our message to Microsoft is not that we want to harm your company, it's that we want your company to thrive, but we want it to thrive by employing and empowering your fellow Americans," he said. "So we're going to continue to support Microsoft and have a great relationship with Microsoft, but we're also going to deny them the ability to apply for these permanent residencies until they show that they are going to get serious about putting American workers first."

Adobe, Cognizant, Infosys and other firms also suspended

Microsoft is not alone. Labor Secretary Keith Sonderling announced the department is also indefinitely suspending software firm Adobe and several major IT outsourcing firms from the PERM program — including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, according to multiple outlets. Any new or pending permanent-residency requests from those companies will not be considered.

"We are cutting off the head of the snake, the companies that have enabled this abuse for decades," Sonderling said, per USA Today. He said the companies had applied to bring in nearly three million foreign workers since 2009 and received more than 230,000 H-1B visas.

Vance did not lay out specific steps for any of the companies to regain access to the program, saying only that the administration wanted them to "change their behavior, improve their behavior and actually get better."

What the PERM program actually does

PERM — short for Program Electronic Review Management — is the Labor Department's permanent labor certification process. It is the key middle step in employment-based green cards: a company first sponsors a worker for an H-1B visa, then applies for PERM certification to prove no qualified American worker is available for the role, and only then can the worker pursue permanent residency.

By freezing Microsoft and the outsourcing firms out of PERM, the administration is effectively blocking the green-card pipeline for their foreign employees — while leaving the H-1B visas themselves untouched for now.

The move is the latest in a rapid-fire immigration crackdown. On Wednesday, the Department of Homeland Security proposed a $70,000 fee for international students seeking work authorization under the OPT program — a story Global Desk News covered in detail here. The administration has also imposed a $100,000 fee on H-1B visas and extended restrictions on the program.

Why it matters

This is not a routine enforcement action. Microsoft is one of America's most valuable companies and a pillar of the US tech industry. Suspending it from the green-card pipeline sends a signal to every major employer that the administration is willing to punish household names, not just little-known outsourcing firms.

For the hundreds of thousands of skilled foreign workers — most of them from India, which accounts for nearly three-quarters of H-1B approvals — the suspension creates immediate uncertainty. Workers whose PERM applications are frozen could see their path to permanent residency stall for years.

Politically, the timing is no accident. With midterm elections on November 3, the administration is framing the crackdown as proof it is fighting fraud and protecting American jobs — a message aimed squarely at voters worried about wages and employment.

What happens next

The Eisenhower Executive Office Building on the White House campus, where Vance announced the suspensions Thursday. Photo: CC BY 4.0, via Wikimedia Commons.

Vance offered no timeline and no clear off-ramp. The suspension lasts, in his words, as long as it needs to — until the companies demonstrate they are putting American workers first.

Microsoft and the other suspended firms have not yet responded publicly, and legal challenges are widely expected. Immigration lawyers say a blanket suspension of named companies from a federal program could face court scrutiny, particularly over due process.

Watch also for the other shoe to drop: at the same press conference, officials announced a separate investigation into nine major universities over alleged J-1 visa abuse — a story Global Desk News is covering separately. The administration's fraud task force shows no sign of slowing down.

Key Takeaways

The Trump administration has indefinitely suspended Microsoft from the PERM green-card program over alleged H-1B visa fraud.
JD Vance announced the move Thursday, citing 6,000 Microsoft layoffs of US workers last year alongside 6,300 H-1B hires.
Adobe and major IT outsourcing firms — Cognizant, Infosys, Tata, Wipro, HCL, Capgemini — were also suspended from PERM.
New and pending permanent-residency applications from the suspended companies will not be processed.
The announcement came the same day Trump was set to award Microsoft CEO Satya Nadella a National Medal of Technology and Innovation.
Microsoft did not immediately respond to requests for comment; legal challenges are expected.

Frequently Asked Questions

What is the PERM program Microsoft was suspended from?

PERM is the Labor Department's permanent labor certification process — the middle step for employment-based green cards. After hiring a worker on an H-1B visa, a company applies for PERM to certify no qualified American worker is available, which then lets the worker seek permanent residency. Without PERM access, that green-card pipeline freezes.

Why did the Trump administration suspend Microsoft?

The administration accuses Microsoft of abusing the system by replacing American workers with cheaper foreign labor. Officials say Microsoft laid off about 6,000 US workers last year while employing 6,300 non-citizens on H-1B visas, and allege the company misrepresented its needs in PERM applications. Microsoft has not yet responded to the allegations.

Which other companies were suspended from PERM?

Alongside Microsoft, the Labor Department suspended Adobe and IT outsourcing giants Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Officials said those firms had requested nearly three million foreign workers since 2009. Any new or pending permanent-residency applications from them will not be processed.

How long will Microsoft's PERM suspension last?

Indefinitely. Vice President Vance said the suspension against Microsoft and the other companies would last "as long as it needs to," offering no specific steps or timeline for regaining access — only that the companies must "change their behavior" and show they are putting American workers first.

Does the suspension affect current H-1B visa holders at Microsoft?

The suspension targets the PERM green-card pipeline, not existing H-1B visas themselves. But foreign workers at Microsoft whose path to permanent residency depended on a PERM filing could see that path stall indefinitely, creating major uncertainty for thousands of employees.

Why did this happen on the same day Nadella got a medal?

President Trump was scheduled Thursday to award Microsoft CEO Satya Nadella the National Medal of Technology and Innovation — the nation's top technology honor. Vance downplayed the clash, saying the administration wants Microsoft to thrive "by employing and empowering your fellow Americans" while still denying it PERM access until it changes course.

By GlobalDeskNews Staff