Labor Department Suspends Microsoft and Adobe from Green Card Program Amid Fraud Allegations

Key points

• The Department of Labor suspended Microsoft and Adobe from the Permanent Labor Certification program, citing active federal investigations into fraud.
• Vice President JD Vance accused Microsoft of replacing 6,000 American workers laid off in 2025 with 6,300 H-1B visa holders and nearly 3,000 green card recipients.
• Microsoft responded by stating that 80% of its recent H-1B applications were for existing employees changing status, not new hires, and that the vast majority of its U.S. workforce is American.
• Labor Secretary Keith Sonderling suspended several other firms, including Cognizant, Infosys, Capgemini, Tata, Wipro, and HCL, from the program.
• The announcement occurred hours before President Trump was to award the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella.

Background

This action follows a series of immigration restrictions by the Trump administration, including lawsuits from 22 states and the District of Columbia challenging rules that link green cards to public benefits. The administration has also proposed a $70,000 fee for international students seeking work authorization, reflecting a broader crackdown on foreign labor and student visas.

How outlets are covering it

NBC News focused on the specific accusations against Microsoft and the contrast between the suspension and the upcoming award to its CEO. CNBC provided a broader view, noting that the suspension applies to multiple companies, including major outsourcing firms like Cognizant and Infosys, and highlighted the Labor Department's claim that these companies have requested nearly 3 million foreign workers since 2009. Both sources reported Microsoft's defense that most visa applications were for status changes rather than new hires, but CNBC emphasized the scale of the industry-wide impact.

Why it matters

The suspension of major tech companies from the green card program signals a significant shift in U.S. immigration policy, potentially affecting the ability of tech firms to hire foreign workers. It also highlights the tension between the administration's anti-immigration stance and its relationships with tech leaders, as seen in the timing of the award to Microsoft's CEO.

What to watch

Microsoft and Adobe are expected to provide additional information to the administration to address the fraud allegations. The suspension may lead to legal challenges from the affected companies, and the broader impact on the tech industry's ability to hire foreign workers will be monitored in the coming months.