US Suspends Microsoft and Global Tech Giants from Green Card Program Amid Fraud Claims

Key points

• The Department of Labor suspended Microsoft, Adobe, and Indian firms including Infosys and Tata Consultancy Services from the PERM program, halting new and pending green card applications.
• Vice President JD Vance alleged Microsoft replaced 6,000 laid-off US workers with foreign hires, while Microsoft stated 80% of its visa applications were for existing employees.
• India's Ministry of External Affairs called Vance's 'indentured servants' remark deeply offensive, noting that 70% of H-1B beneficiaries are Indian nationals.
• The suspension impacts a system where nearly one million Indian workers are currently stuck in the green card backlog, with some facing decades-long waits.
• The move follows a federal judge blocking a proposed $100,000 H-1B visa fee, as the administration seeks stricter controls on skilled immigration.

Background

This action follows earlier federal court rulings that blocked a proposed $100,000 fee for H-1B visas, which the administration had argued was necessary to curb misuse of the visa system. The current suspension targets the Permanent Labor Certification program, a critical step for foreign workers transitioning from temporary H-1B visas to permanent residency. Previous coverage noted that this move precedes a national technology award ceremony for Microsoft CEO Satya Nadella, highlighting the tension between the administration's immigration stance and major tech industry leaders.

How outlets are covering it

Outlets highlight different aspects of the dispute. KOMO and Al Jazeera focus on the administrative suspension and Vance's fraud allegations, noting that Microsoft disputes the claim that visa hires replaced laid-off workers. CNBC and Al Jazeera emphasize the diplomatic fallout, detailing India's official condemnation of Vance's 'indentured servants' language as 'deeply offensive' and a reference to painful colonial history. While KOMO frames the issue as a local tech industry defense, Al Jazeera and CNBC stress the broader impact on the global IT workforce, particularly the 70% of H-1B holders who are Indian nationals. All sources agree that the suspension halts processing for both new and pending applications, but they differ in emphasis: KOMO focuses on the corporate response, while Al Jazeera and CNBC highlight the human and diplomatic consequences.

Why it matters

This suspension directly impacts the legal status of thousands of skilled foreign workers, particularly Indian nationals, who rely on the PERM program for permanent residency. It signals a shift in US immigration policy toward stricter enforcement against large tech employers, potentially reshaping global talent mobility and US-India economic relations. The move also raises questions about the balance between corporate hiring practices and national labor protections, with long-term implications for the tech industry's ability to attract international talent.

What to watch

The administration has stated the suspensions will continue 'as long as it needs to,' with no immediate timeline for reinstatement. Microsoft and other affected companies may pursue legal challenges or public relations campaigns to defend their hiring practices. India is expected to continue diplomatic pressure, potentially affecting trade and technology cooperation between the two nations. The outcome of this dispute could influence future H-1B visa fees and immigration policy ahead of the 2026 midterm elections.