Washington freezes green-card sponsorship at Microsoft, Adobe and six IT outsourcers
JD Vance and the Labor Department suspended Microsoft, Adobe and six IT outsourcers from PERM, the labor certification most employer green cards require. Employees already in those queues pay first, and the officials' fraud charges put past filings under legal scrutiny.
The Investor · Invest desk
What happened
- Labor Secretary Keith Sonderling said the department would neither accept new nor process pending labor certification applications involving the eight companies.
- By Vance's count, Microsoft cut 6,000 American jobs last year even as it drew on 6,300 H-1B visas and nearly 3,000 green cards.
- Attorney General Todd Blanche warned that criminal cases could be brought against companies, Fox Business reported.
Why it matters
- Who's exposed exposure Employees whose green cards rest on a pending filing at any of the eight employers are stuck until the suspension lifts, and the companies absorb the retention risk that creates.
- Who's exposed exposure Because officials call the PERM attestations false statements, certifications these firms already filed become material for the Labor investigations and any criminal case Blanche brings.
- What doesn't add up contradiction A same-day presidential medal for Microsoft's CEO and Vance's behavior-change framing point to a negotiable suspension, while Blanche's criminal warning points toward prosecution.
- What it sets up precedent Washington is pulling program access by executive action and stacking it on the H-1B fee, so other heavy visa sponsors can expect the same tool without any new law from Congress.
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Vance's figure of one and a half foreign hires for every Microsoft layoff holds only if his two counts are added together [19]. Set against 6,000 job cuts, 6,300 H-1B visas plus nearly 3,000 green cards come to about 1.55 per layoff [20]. The visas alone come to 1.05 [21]. Adding them treats the green-card recipients and the visa holders as different people [20].
Labor Secretary Keith Sonderling's group totals are harder to read. He said the eight companies requested almost 3 million foreign workers since 2009, and their 230,000-plus H-1B approvals are under 8% of that [1][2][6][15]. The 100,000-plus certifications, spread over roughly 17 years, average about 5,900 a year for all eight together [16]. Microsoft's nearly 3,000 green cards last year, on Vance's count, would be about half that average by itself (green cards and certifications are different tallies, so the comparison is loose) [17]. Either Microsoft takes a large share of the group's recent flow or the flow has grown since 2009. Neither official split the totals by company.
The legal exposure sits in the certification, or rather in the one statement it makes. Under PERM, an employer asks the Labor Department to certify that there is no qualified, willing or available US worker for a specific job, a step required before most employment-based green-card petitions [5]. Vance says those statements were false. "So the fraud is that they're making representations when applying for this program that are fundamentally illegitimate and therefore ultimately illegal," he said [22]. He described how it works: "They'll put an advertisement in a small-town newspaper," he said [23]. Sonderling cited active federal investigations [4].
The suspension could be a bargaining position. Vance said the aim was to change companies' behavior and not to punish them, and Trump planned to give Microsoft's chief executive a medal later that same Thursday, according to Semafor [7][9]. It could instead be the front end of prosecutions, if Attorney General Todd Blanche's warning of criminal cases against companies becomes a charge [8]. Or it could be walked back. In May the administration partly retreated on a plan to make H-1B holders apply for permanent residency from outside the US [12]. Businesses have also challenged the proposed H-1B fee of more than $100,000 in court [10][11].
I think the frozen queue is the cost that arrives first, and employees carry it. Because Labor will not process pending applications, anyone whose green card rests on a filing by one of the eight waits until the suspension lifts [3]. For the outsourcers, the freeze lands on top of the H-1B fee [10]. Foreign workers were almost a quarter of the US STEM workforce in 2023, Semafor reported, citing the American Immigration Council [14].
The administration is acting ahead of Congress. Vance said "we have tools in the administration to make this program work better for the American people," then added: "A lot more we could do if Congress was willing to play ball." [13]
The case for treating this as an operating risk weakens if Labor resumes Microsoft's pending applications within weeks. The medal makes that plausible [9]. It strengthens if a charge is filed against any of the eight, because the 100,000-plus certifications the group received since 2009 would then be potential evidence in the investigations Sonderling cited [6][4].
What to watch
- Whether Labor sets conditions or a date for lifting the suspension and resumes processing pending applications at Microsoft or the outsourcers.
- Whether Attorney General Todd Blanche files criminal charges against any of the eight companies.
- Whether any of the eight, or the businesses already contesting the H-1B fee, takes the PERM suspension to court.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence45
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- Incentives70
- Confidence68
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Claim ledger
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- [1]
Vice President JD Vance and Labor Department officials announced Thursday that the Trump administration is suspending Microsoft, Adobe and others from the Permanent Labor Certification (PERM) program, accusing major tech and outsourcing firms of abusing the visa system.
- [2]
Labor Secretary Keith Sonderling said Cognizant, Infosys, Tata, Wipro, HCL and Capgemini would also be suspended from the program.
- [3]
"We will not accept any new or process any pending permanent labor certification applications involving these companies," Sonderling said.
- [4]
Sonderling cited active federal investigations in suspending the companies.
- [5]
Under the PERM process, employers seek certification from the Department of Labor that there is no qualified, willing or available US worker for a specific job; it is a step required before filing petitions for most employment-based green cards.
- [6]
Sonderling said that since 2009 these companies requested almost 3 million foreign workers, received over 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.
- [7]
Vance said targeting the companies was intended to change companies' behavior and not punish them.
- [8]
Attorney General Todd Blanche warned there could be criminal cases brought against companies.
- [9]
Trump planned to award a medal to the CEO of Microsoft later on Thursday, the day of the announcement.
- [10]
The administration recently moved to charge more than $100,000 for a single H-1B visa.
- [11]
Businesses challenged the proposed H-1B fee in court.
- [12]
In May the administration partially pulled back, clarifying an announcement that H-1B holders would have to start applying for permanent residency from outside the US.
- [13]
"we have tools in the administration to make this program work better for the American people. A lot more we could do if Congress was willing to play ball," Vance said.
- [14]
Foreign workers made up almost a quarter of the US STEM workforce in 2023, according to the American Immigration Council.
- [15]
H-1B approvals were under 8% of the foreign workers the eight companies requested since 2009.
- [16]
Over roughly 17 years since 2009, 100,000 certifications average about 5,900 a year across all eight companies.
- [17]
Microsoft's nearly 3,000 green cards last year are about half the eight-company annual average of certifications.
- [18]
Vance said Microsoft laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas and nearly 3,000 green cards.
- [19]
Vance said that for every worker Microsoft laid off, it replaced that worker with one and a half foreign workers, whom he called indentured servants.
- [20]
6,300 H-1B visas plus nearly 3,000 green cards, divided by 6,000 layoffs, is about 1.55 foreign hires per layoff; reaching Vance's 1.5 requires adding the two counts.
- [21]
The H-1B count alone is 1.05 visas per Microsoft layoff.
- [22]
"So the fraud is that they're making representations when applying for this program that are fundamentally illegitimate and therefore ultimately illegal," Vance said.
- [23]
"They'll put an advertisement in a small-town newspaper," Vance said.
Sources
14 independent publishers whose own reporting we read for this story.
- aljazeera.comUS suspends Microsoft and Adobe from visa programme amid fraud claims | Business and Economy News | Al Jazeera
1 article · October 8, 2026
- ca.news.yahoo.comTrump administration freezes green cards for Microsoft, IT firms, probes universities - Yahoo News Canada
1 article · October 8, 2026
- channelnewsasia.comUS suspends Microsoft, major IT firms from key green card program
3 articles · October 8, 2026
- cnbc.comU.S. suspends Microsoft, Adobe from green-card labor program in foreign worker crackdown
1 article · October 8, 2026
- cryptobriefing.comMicrosoft suspended from PERM green card program the same day its CEO receives a medal
1 article · October 9, 2026
- cryptopolitan.comUS suspends green-card filings for Microsoft, Adobe as AI talent race tightens
1 article · October 8, 2026
- finance.yahoo.comJD Vance slams Microsoft, says it swapped 6,000 laid-off Americans for ‘foreign indentured servants.’ Microsoft responds
1 article · October 9, 2026
- fortune.com'These were not to hire new people': Trump admin suspends green cards to Microsoft | Fortune
4 articles · October 12, 2026
- foxbusiness.comVance suspends Microsoft, others from foreign workers applying for green cards, alleges visa 'abuse' | Fox Business
1 article · October 8, 2026
- indianexpress.comUS H1b Visa, Green Card Suspension News: Microsoft, Infosys, Tata, Wipro, Cognizant, HCL and Capgemini hit by US H-1B, Green Card crackdown
2 articles · October 8, 2026
- nbcnews.comThe Trump administration is suspending Microsoft from a green card program, alleging fraud
1 article · October 8, 2026
- qz.comU.S. is suspending Microsoft and Adobe from the green card program over alleged fraud
2 articles · October 8, 2026
- scmp.comUS suspends Microsoft, major IT firms from green card programme
1 article · October 8, 2026
- semafor.comTrump administration blocks tech companies from visa program
1 article · October 8, 2026
- taipeitimes.comVance highlights Microsoft in crackdown on visa abuse - Taipei Times
1 article · October 9, 2026
- techspot.comMicrosoft and Adobe hit with green-card suspensions as Vance accuses tech firms of sidelining American workers
1 article · October 9, 2026
- thehindu.comCognizant, Infosys, Tata, Wipro and HCL among IT firms suspended from U.S. green card programme
1 article · October 8, 2026
- tomshardware.comU.S. suspends green card path for H-1B workers at Microsoft and Adobe — labor certification program blocked due to alleged fraud
1 article · October 8, 2026
- vccircle.comUS freezes green cards for Indian IT firms, Microsoft, probes universities
1 article
Topics and entities
Topics
- Tech Labor Market
- Employment-based green cards
- US skilled-worker immigration policy
- H-1B visas