The Trump administration announced Thursday it will suspend Microsoft, Adobe, and three major IT firms from a federal program that allows H-1B visa holders to apply for green cards, blocking one of the most widely used routes for skilled foreign workers seeking permanent residency in the United States. Vice President JD Vance and Labor Secretary Keith Sonderling said the companies will no longer be permitted to participate in the PERM program—the Labor Department's permanent labor certification system—while officials investigate whether the firms committed fraud by undercutting American workers through foreign hiring. The move targets some of the tech industry's heaviest users of employment-based immigration pathways.
The suspended companies include software giants Microsoft and Adobe, along with IT services providers Cognizant, Infosys, and Tata. Microsoft has received approval for 3,688 H-1B visas so far in fiscal year 2026, making it the fifth-largest employer in the program; in 2025, the company secured 6,258 visa approvals. According to Microsoft, 80 percent of its visa filings last year were for extending or changing the status of current employees rather than bringing in new hires, and new filings represented just 1 percent of its U.S. workforce. Amazon, Tata, and Infosys hold the top three spots for approved visas in the current fiscal year. The PERM system requires employers to demonstrate that no qualified American workers are available for a given permanent job opening before sponsoring a foreign employee for a green card.
Vance singled out Microsoft during a press conference, stating "There has been no company in the United States, unfortunately, that has abused this system more than Microsoft." Labor Secretary Sonderling said the agency is probing whether these firms engaged in fraud. Microsoft responded in a statement that it "only files H-1B petitions for those who meet the rigorous standards of this visa category" and builds its workforce by "strengthening this country's talent pipeline, hiring American workers, and attracting the best talent from around the world." Adobe, Cognizant, Infosys, and Tata did not provide comments. The announcement arrived just before President Trump was scheduled to present Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation, though Vance said the administration would "continue to support Microsoft and have a great relationship with Microsoft" while denying the company access to permanent residency applications until it prioritizes American workers.
The suspension represents a win for tech workers who have argued they unfairly lose job opportunities to immigrant employees. Jobs Now, an advocacy group composed of U.S. citizens working in big tech, has filed complaints against technology companies over alleged PERM abuse and helped Americans apply to nearly 500,000 positions across 7,000 employers between January and July of last year. The group, which celebrated Vance's announcement with a video of dancing crabs on social media, told WIRED that "Every job in America should be offered to an American first, no exceptions." Tech companies have faced PERM-related scrutiny before: OpenAI and an acquired company settled accusations from the Trump administration about program violations earlier in 2025, and Apple reached a similar agreement in 2023. Vance framed the current H-1B system as bringing "indentured servants" into the country and taking jobs from American workers, contrasting it with cases like Elon Musk—who "aims to build something great in America"—though it remains unclear whether the suspension affects employees' ability to apply for H-1B visas themselves or only their employers' capacity to sponsor green cards. The administration also said it's investigating nine universities for potential fraud related to the J-1 visa program, which permits international students and researchers to study and work in the U.S., with Labor Department Inspector General Anthony D'Esposito warning, "I don't care how prestigious a university thinks it is, break the law and screw the American people, and I will personally cuff you in the university square."
The decision signals a sharp tightening of employment-based immigration enforcement that has sent ripples of concern through Silicon Valley since Trump's reelection, particularly among companies that depend heavily on foreign talent pipelines. Vance's announcement makes clear the administration intends to use PERM suspension as a leverage tool to push tech employers toward domestic hiring, though the full scope of the policy—including whether visa renewals or new applications are affected—remains unspecified. For companies navigating talent shortages and specialized skill requirements, the uncertainty around immigration pathways may force difficult choices between workforce planning timelines and regulatory compliance risks. Leaders balancing innovation speed against policy volatility will need to weigh whether investing in domestic training programs can realistically close capability gaps that foreign hiring has traditionally filled.