US Suspends Microsoft, Adobe, and Indian IT Giants From Green Card Program

Key points

• The Department of Labor suspended eight companies, including Microsoft, Adobe, Cognizant, Infosys, and Tata, from the PERM program indefinitely.
• Vice President JD Vance accused Microsoft of laying off 6,000 American workers while replacing them with 6,300 H-1B visa holders, though Microsoft disputed these figures.
• Microsoft stated that 80% of its recent H-1B applications were to extend or change the status of current employees, not to hire new foreign workers.
• The suspension occurred hours before President Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation at a White House summit.
• The administration simultaneously announced over $100 million in funding for American STEM researchers to reduce reliance on foreign talent.

Background

This action follows a broader 2026 crackdown on immigration, including a proposed $100,000 H-1B fee that was struck down by courts, and earlier warnings from the Labor Department Inspector General about potential program overhauls. The PERM program is a critical step for foreign workers to obtain green cards, and its suspension affects a pipeline that has historically supported US tech innovation.

How outlets are covering it

Bloomberg Law and Axios emphasize the contradiction between the administration's praise for tech leaders and its immigration restrictions, noting that Vance called the move a 'hammer' against abuse while Trump honored the same CEO. Microsoft and the Indian IT lobby, Nasscom, argue the actions undermine legal immigration and innovation, with Microsoft stressing its high wage standards. Democrats, including Rep. Pramila Jayapal, criticized the move as damaging to US competitiveness, while industry experts warned it could shrink the talent pool. Market reactions were mixed, with Microsoft shares falling slightly while some Indian IT firms rose.

Why it matters

The suspension of the PERM program disrupts a key pathway for permanent residency for thousands of skilled workers, potentially affecting US tech competitiveness and global talent mobility. It signals a shift in immigration policy that prioritizes domestic hiring over foreign talent, with long-term implications for innovation and corporate hiring practices.

What to watch

The administration has not set a timeline for lifting the suspensions, stating they will last 'as long as needed.' Microsoft plans to provide additional information to the government, while the Department of Labor will not process new or pending PERM applications for the suspended firms. The outcome may depend on ongoing federal investigations into visa program abuse.