The U.S. government is suspending Microsoft, Adobe and several major information-technology companies from the employment-based green-card process, alleging fraud and misuse of foreign-worker programs. The action could affect how those employers sponsor skilled workers for permanent residence.
Vice President JD Vance announced the action on Thursday, October 8, saying Microsoft should hire more American workers. Acting Labor Secretary Keith Sonderling said the Department of Labor would suspend the companies from the Permanent Labor Certification, or PERM, program.
What changed
The companies named by federal officials include Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Officials alleged that some companies had laid off American employees while continuing to employ or sponsor foreign workers. Those claims remain allegations.
PERM is generally the first major employer-sponsored step for many employment-based green-card cases. Under the process described by U.S. Citizenship and Immigration Services, an employer normally seeks labor certification from the Department of Labor before filing an immigrant petition with USCIS. The certification process includes showing that qualified U.S. workers are not available for the specific position under the applicable rules.
The announcement concerns the permanent-residency process rather than announcing a general suspension of H-1B visas. Workers whose immigration plans depend on employer-sponsored permanent residency could face delays or uncertainty while the suspensions and investigations proceed.
Why the decision matters to technology
The affected companies operate across software, consulting and IT services. A suspension of PERM processing could make it harder for them to offer a predictable long-term immigration path to foreign workers in technical roles, potentially affecting hiring and retention.
Reuters reported that the Labor Department also identified nine universities for investigation over alleged misuse of J-1 visas, including Harvard, Yale and Stanford. Officials said subpoenas had been issued. The university inquiries broaden the action beyond corporate hiring and into higher education and research.
What employers and workers should watch
- Whether the Labor Department publishes formal suspension notices explaining the scope, duration and legal basis of each action.
- Whether pending PERM applications are rejected, held or transferred into another review process.
- Whether the affected companies challenge the suspensions in court or issue guidance to employees with pending cases.
- Whether the administration extends the policy to additional employers or changes other employment-based immigration rules.
For now, the announcement creates a compliance and workforce-planning problem for some of the technology industry’s largest employers. It also signals that the administration is treating the immigration pipeline for technical workers as part of its broader effort to favor domestic hiring.
References
Kim, S. M., & Santana, R. (2026, October 8). The Trump administration is suspending Microsoft from a green card program, alleging fraud. AP News. https://apnews.com/article/e7b3a407f822702b269ee277d21343ea
Rosenzweig-Ziff, D. (2026, October 8). U.S. suspending permanent residency program for Microsoft, Vance says. Reuters. https://www.reuters.com/business/us-suspending-permanent-residency-program-for-microsoft-vance-says-2026-10-08/
U.S. Citizenship and Immigration Services. (n.d.). Immigrant-based employment. https://www.uscis.gov/sites/default/files/document/foia/Immigrant_Empl.pdf