Microsoft Suspended From Green Card Program After Vance Alleges Foreign Worker Substitution

Key points

• Vice President JD Vance announced the suspension of Microsoft, Adobe, and six IT consulting firms from the PERM program on October 8, 2026, citing alleged fraud in hiring practices.
• Vance claimed Microsoft laid off 6,000 American workers while securing 6,300 H-1B visas and nearly 3,000 green cards, describing the foreign workers as 'indentured servants.'
• Microsoft responded that 80% of its H-1B applications were for existing employees extending or changing status, not new hires, and that the remaining 20% were for individuals already legally in the U.S.
• USCIS data shows Amazon is the largest H-1B sponsor, not Microsoft, and neither Amazon nor Meta were suspended despite being top users of the visa program.
• President Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation hours after the suspension announcement, creating a stark contrast in the administration's actions.
• The suspension affects the PERM program, which is the first step for permanent residency, but does not impact temporary H-1B visas; however, pending PERM applications for Microsoft employees will not be processed.

Background

This action follows a September 2026 executive order directing agencies to protect American workers from program abuse and precedes potential legal challenges. The administration has also proposed a $70,000 fee for international students seeking work in the U.S., though an earlier attempt to raise H-1B fees to $100,000 was struck down by a federal judge in June. The suspension has triggered diplomatic friction with India, which called Vance's language 'deeply offensive,' and caused uncertainty for international workers relying on Microsoft for their green card pathways.

How outlets are covering it

24/7 Wall St. and AP News highlight the contradiction between the suspension and the subsequent award of the National Medal of Technology to Microsoft CEO Satya Nadella, emphasizing the administration's mixed signals. CNBC and GeekWire focus on the data discrepancies, noting that while Vance cited H-1B numbers, the suspension targets the PERM program, and that Amazon and Meta, the largest H-1B sponsors, were not suspended. Microsoft’s response, reported across all sources, emphasizes that most H-1B applications were for existing employees, challenging Vance’s narrative of replacing American workers. Critics, including former USCIS adviser Doug Rand, called the move 'incoherent,' while Howard University professor Ron Hira deemed it 'very significant' due to the enforcement of worker protections.

Why it matters

The suspension of Microsoft and other major tech firms from the PERM program could disrupt the permanent residency pathways for thousands of international workers, many of whom rely on these companies to extend their visas beyond the six-year H-1B limit. The move signals a broader shift in U.S. immigration policy, prioritizing American workers and potentially leading to legal challenges and diplomatic tensions, particularly with India. The contrast between the suspension and the award of the National Medal of Technology to Microsoft’s CEO highlights the complex and often contradictory nature of the administration’s approach to tech and immigration.

What to watch

It is unclear how long the suspension will last or the legal authority behind it. Microsoft has stated it will provide additional information to the administration, and it is possible that the company or other suspended firms may challenge the suspension in court. The Labor Department’s investigation into J-1 visa fraud at nine universities may lead to further actions, and the proposed $70,000 fee for international students is expected to face legal challenges. The administration’s broader immigration policies, including potential changes to H-1B fees and rules, will likely continue to evolve in the coming months.