US suspends Microsoft, Adobe and IT outsourcers from green card program

The US Department of Labor has suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini from the Permanent Labor Certification program, known as PERM. Vice President JD Vance announced the action at a press event on October 8, 2026, with Labor Secretary Keith Sonderling and Attorney General Todd Blanche appearing alongside him.

PERM is the certification step employers generally must complete before sponsoring a foreign worker, often an H-1B visa holder, for an employment-based green card. Under the program, companies must first show that no qualified US worker was available for the role. With the suspension in place, the named companies cannot submit new PERM applications, and pending applications will not be processed further, according to officials.

What Vance said about Microsoft

Vance singled out Microsoft, saying, "There has been no company in the United States, unfortunately, that has abused the system more than Microsoft." He said Microsoft laid off about 6,000 American workers over the past year while simultaneously obtaining roughly 6,300 H-1B visas and nearly 3,000 green cards. Vance characterized the ratio as "one and a half foreign indentured servants" for every American worker laid off.

Vance also alleged that some companies post job advertisements in ways designed to attract few qualified US applicants — for instance in small-circulation newspapers — so they can then argue no American was available and proceed to hire a foreign worker instead.

Officials said nearly three-quarters of approved H-1B visas nationally go to workers from India, a figure cited in connection with the announcement.

How the companies responded

Microsoft did not immediately respond to the suspension announcement itself, according to reporting at the time, but the company separately said that about 80% of its roughly 6,000 H-1B filings in the period cited were extensions for employees already working in the US rather than new hires, and that new H-1B filings accounted for only about 1% of its US workforce. Microsoft also said it pays H-1B employees the same as other employees doing comparable work. Adobe did not immediately respond to requests for comment.

Timing and other administration actions

The suspension announcement came on the same day President Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation. Attorney General Todd Blanche also announced Justice Department investigations into companies accused of discriminating against American workers in hiring.

The administration separately said it would investigate nine universities, including Harvard, Yale and Stanford, over the use of J-1 and other international-student visa programs, and floated a proposed $70,000 fee for international students seeking work authorization through Optional Practical Training. These university-related measures were announced alongside the PERM suspension but involve a separate visa track.

What is known and not yet known

• Vance said the suspension would "last as long as it needs to," and said the administration has tools to make the suspension indefinite if its concerns about hiring practices are not addressed.
• Existing, already-approved H-1B visas and green cards for workers at the affected companies are not reported to be revoked by this action; the suspension applies to new and pending PERM filings.
• It has not been detailed publicly how many pending PERM applications from the eight companies are affected or how quickly a review process might resolve the suspension.