Trump Administration Cuts Off Access to a Major Immigration Program for Workers at Microsoft and Adobe
The Trump administration suspended Microsoft, Adobe, and other tech companies from the PERM program, a key step for H-1B visa holders seeking green cards. The Labor Department is investigating alleged fraud, claiming these companies undercut American workers. Microsoft denied wrongdoing, stating it hires American workers and attracts global talent. The suspension follows similar actions against OpenAI and Apple. Microsoft had 3,688 H-1B visas approved in 2026, with 80% for existing employees.
How this was made
The 30-second read
Why it matters
The move introduces regulatory risk for major tech employers, potentially affecting staffing, project timelines, and earnings forecasts.
Market read
Regulatory action creates immediate negative sentiment for the named firms and may prompt broader sector reassessment of immigration‑related hiring risk.
What to watch
Potential for companies to shift to alternative visa categories or increase domestic hiring, mitigating long‑term impact.
Background
The administration’s PERM suspension targets firms accused of abusing the green‑card process for H‑1B workers, reflecting a broader political push on immigration.
Ticker impact
The Trump administration suspended Microsoft from the PERM green‑card program, a key immigration pathway for its H‑1B workforce.
downward pressure as investors price in potential talent‑pipeline constraints
The PERM suspension directly limits Microsoft’s ability to retain and attract foreign talent, a material operational risk.
Adobe was named among firms barred from the PERM program, affecting its foreign‑worker hiring pipeline.
downward pressure from perceived talent‑access risk
Adobe relies on skilled foreign engineers; loss of PERM eligibility could slow product development.
Cognizant was listed for suspension from the PERM program, limiting its ability to sponsor green cards for H‑1B employees.
downward pressure as market assesses staffing risk
Cognizant’s business model depends heavily on foreign tech talent; PERM suspension is a direct operational hit.
Infosys was included in the PERM suspension, affecting its U.S. hiring and talent‑retention strategy.
downward pressure due to heightened regulatory risk
Infosys’ U.S. delivery centers rely on H‑1B talent; loss of green‑card pathway raises cost and risk.
Market effects
The tech services and software sectors may see broader hiring‑cost concerns as the policy signals tighter immigration enforcement.
U.S. markets could experience modest downside in large‑cap tech stocks; Indian and other foreign markets may see spillover effects on export‑oriented IT firms.
Regulatory tightening on H‑1B visas could influence global talent flows and affect multinational tech companies worldwide.
Counterpoint
If the policy is later softened or challenged in court, the market reaction could reverse, offering a buying opportunity on dip.
Key entities
- companyMicrosoft
U.S. software giant, ticker MSFT
- companyAdobe
Digital media software firm, ticker ADBE
- companyCognizant
IT services provider, ticker CTSH
- companyInfosys
Indian IT services firm, ticker INFY
