Trump Administration Suspends Microsoft From Green Card Program Over Alleged Visa Fraud

Microsoft shares fell 1.35% after the U.S. Labor Department suspended it from the PERM program due to immigration rule probes. The company stated most H-1B applications were for current employees. Separately, OpenAI's lower-than-expected revenue pressured AI-linked shares. Analysts maintain a Strong Buy consensus on Microsoft, with a 12.2% upside target.

On October 8, 2026, the US suspended eight companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, Capgemini, Microsoft, and Adobe, from the PERM program, halting new and pending green card applications. The move follows allegations of fraud in H-1B and PERM programs, with the labor department citing 3 million requested workers and 100,000 certifications since 2009. Microsoft faced specific accusations of laying off Americans while hiring foreign workers.

The US suspended 8 IT firms, including TCS, Infosys, and Microsoft, from the PERM green card program. The US Department of Labour alleges misuse of employment-based immigration programs. Microsoft faces additional scrutiny for layoffs while hiring foreign workers. The suspension halts new PERM applications and pending ones, impacting thousands of Indian IT professionals.

Karnataka Minister Priyank Kharge stated that the US suspension of the Permanent Labour Certification Programme for IT firms may increase operating costs for Indian companies, complicate employee retention, and reduce onsite deployment flexibility. However, it could also accelerate the growth of Global Capability Centres in India, boosting demand for senior tech professionals and strengthening India's role in product development and innovation.

The US government has suspended major tech companies, including Microsoft, Adobe, and several Indian firms, from the PERM program, which sponsors foreign workers for green cards. Vice President JD Vance accused these companies of fraud and displacing US workers. The move impacts thousands of foreign workers, many of whom are Indian nationals. Microsoft disputed the claims, stating most H-1B visas were for existing employees. The suspension could delay permanent residency for affected workers.

The US Labor Department suspended eight tech firms, including Infosys, TCS, Wipro, HCL, Microsoft, and Adobe, from the PERM program. The suspension halts new and pending applications for these companies, which collectively requested nearly 3 million foreign workers since 2009. Data shows they averaged about 13,500 approved H-1B visas annually. Vice President Vance highlighted Microsoft's layoffs and simultaneous visa applications.