US Suspends Tech Giants from Green Card Program, Citing Wage Suppression

Key points

• Vice President JD Vance and Labor Secretary Keith Sonderling announced the suspension of PERM applications for several major tech companies, including Microsoft, Adobe, and Indian IT firms like Infosys and TCS.
• The administration claims these firms abused the visa system to hire cheaper foreign workers, citing Microsoft's alleged replacement of 6,000 US layoffs with 6,300 H-1B visas and 3,000 green cards.
• Microsoft disputed the claims, stating that 80% of its H-1B filings were for existing employees extending their status, not new hires, and that all staff are paid equally.
• The suspension affects companies that have received over 230,000 H-1B visas and 100,000 permanent labor certifications since 2009, according to Labor Secretary Sonderling.
• Indian nationals, who make up 70% of H-1B holders and 79% of the green card backlog, face the most significant impact, with nearly one million people stuck in the system.
• India's Ministry of External Affairs condemned the 'indentured servant' rhetoric as offensive and argued that talent mobility benefits both economies through innovation and job creation.

Background

This action follows a broader Trump administration crackdown on immigration, including a proposed $103,000 fee for H-1B applications and expanded public-charge rules that allow green card denials for immigrants using public benefits. These measures aim to reduce legal immigration pathways and increase costs for employers relying on foreign talent.

How outlets are covering it

Al Jazeera highlights the potential harm to thousands of foreign workers already in the US and notes the disproportionate impact on Indian nationals due to country caps and backlogs. AP News focuses on the contradiction of Trump honoring Microsoft CEO while Vance accuses the company of abuse, emphasizing the political tension within the administration. Both sources agree on the factual suspension but differ in emphasis: Al Jazeera centers on the human cost and diplomatic fallout, while AP News frames it as a policy inconsistency.

Why it matters

The suspension disrupts a critical pathway for skilled foreign workers to achieve permanent residency, potentially forcing them to leave the US or remain on temporary visas indefinitely. It also strains US-India relations, as India views the rhetoric as colonial and offensive, while the US administration seeks to protect domestic wages and reduce reliance on foreign labor.

What to watch

The suspensions will remain in effect 'as long as it needs to,' according to Vance. Companies may challenge the decision in court, while affected workers could face extended waits or loss of eligibility. India may escalate diplomatic protests, and the tech industry may lobby for exemptions or policy reversals.