WASHINGTON, United States – The Trump administration has suspended Microsoft and several other technology and IT services companies from a federal program used to sponsor skilled foreign workers for employment-based green cards, citing alleged fraud and concerns about U.S. jobs.
Vice President JD Vance announced the action on October 8. Labor Secretary Keith Sonderling said the Labor Department would not accept new or process pending applications under the Permanent Labor Certification program, known as PERM, involving the targeted companies.
The companies named include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The restrictions could disrupt a common route to permanent residency for eligible foreign employees sponsored by those employers. <Cite refs={[“turn696017news31″,”turn696017news32”]}/>
What the PERM Suspension Means
PERM is a labor-certification process administered by the U.S. Department of Labor. For many employer-sponsored green card cases, an employer must demonstrate that there are no qualified, willing and available U.S. workers for the relevant position under the required recruitment process.
The suspension prevents the named companies from submitting new PERM applications or moving pending applications through that process while the restrictions remain in effect. The government has not provided a clear public timetable for when the suspensions might end. <Cite refs={[“turn696017search1″,”turn696017search5”]}/>
The action does not automatically cancel employees’ existing H-1B visas. H-1B status allows eligible foreign workers to work temporarily in specialty occupations, while a green card provides lawful permanent-resident status. PERM is one step in many employment-based green card applications, not a visa category itself.
The immediate concern for affected employees is whether delays or halted applications could disrupt their plans to obtain permanent residency. The impact will depend on each worker’s immigration status, the stage of the application and whether another immigration pathway is available.
Administration Alleges Misuse of Worker Programs
Vance and Labor Department officials said the suspensions were intended to address alleged abuse of immigration programs and protect U.S. workers from displacement and wage competition.
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Vance singled out Microsoft, arguing that companies should prioritize American workers. Officials cited concerns that large technology employers had laid off U.S. employees while continuing to seek foreign workers.
However, the announcement did not publicly establish that Microsoft had committed fraud. The allegations remain the administration’s stated basis for its action, and the suspension itself is not a criminal conviction or a judicial finding of wrongdoing. <Cite refs={[“turn696017news32″,”turn696017search12”]}/>
The distinction matters because the PERM process requires employers to follow specific labor-market certification rules. Whether a company violated those requirements must be assessed through evidence and the applicable administrative or legal process.
Microsoft Responds
Microsoft said it was cooperating with the administration and emphasized that most of its recent H-1B filings involved existing employees rather than new hires.
The company’s response addresses the government’s criticism of its use of foreign-worker programs, but it does not resolve the allegations behind the suspension. The Labor Department’s action remains in place while the matter develops. <Cite refs={[“turn696017news32″,”turn696017news34”]}/>
The restrictions could affect the company’s ability to continue certain employment-based green card applications for eligible staff. They do not, by themselves, establish that those workers must leave the United States or that their existing work authorization has ended.
Broader Scrutiny of Foreign-Worker Programs
The PERM suspensions are part of a wider administration effort to scrutinize the use of foreign-worker and exchange-visitor programs.
Labor Department officials also announced investigations into possible misuse of J-1 exchange-visitor programs at nine universities. Officials said they were examining whether international programs had been used to undercut American wages or bypass program requirements. <Cite refs={[“turn696017news31″,”turn696017search14”]}/>
The J-1 exchange-visitor program is separate from both PERM and H-1B. It supports approved educational, research, training and cultural-exchange activities. The investigations do not establish that the universities named committed violations.
The combined actions indicate that the administration is expanding its scrutiny beyond temporary work visas to other systems that allow employers and institutions to bring foreign nationals to the United States.
Implications for Technology Employers and Workers
The suspensions create uncertainty for companies that rely on international specialists and for employees seeking permanent residency through their jobs.
For affected workers, a delayed PERM application can slow progress toward a green card. The consequences will vary depending on the employee’s current status, eligibility and stage in the immigration process.
For employers, the restrictions may complicate workforce planning and retention, especially where employees’ long-term U.S. plans depend on employer-sponsored immigration.
The wider policy debate concerns how the United States should balance protection of domestic workers with the technology sector’s demand for specialized skills. The administration says the restrictions are intended to prevent abuse and protect American jobs. Critics argue that limiting legal routes to permanent residency may create additional uncertainty for skilled foreign workers and employers.
The immediate development is narrower: the government has halted new and pending PERM applications involving the named companies. The allegations remain under investigation, and the full duration and practical effects of the restrictions are not yet clear.
Reporting Credit: U.S. Department of Labor; U.S. Department of Homeland Security; U.S. Citizenship and Immigration Services; Microsoft; official PERM program guidance; relevant federal records.
