Satya Nadella went from H-1B worker to Microsoft CEO. Trump just shut that path for his employees
The U.S. suspended Microsoft and seven other companies from the PERM program, which sponsors foreign workers for green cards. Microsoft, the program's largest user, received 3,161 PERM applications in FY2025. The suspension does not affect H-1B visas. Microsoft stated 80% of its H-1B filings were for existing employees. President Trump later awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation.
How this was made
The 30-second read
Why it matters
A PERM suspension blocks new applications and processing of existing PERM pipeline for Microsoft and several IT firms, potentially slowing permanent residency timelines for foreign-born employees and increasing compliance and workforce-planning uncertainty.
Market read
Traders may reprice Microsoft’s immigration-related talent pipeline risk and potential HR friction as PERM is suspended for the company.
What to watch
The article notes the suspension does not touch H-1B visas, and PERM is later-stage; investors may overestimate immediate hiring disruption versus longer-term green-card processing delays.
Background
PERM is the Labor Department’s permanent labor certification step that employers use after H-1B entry to sponsor employees for green cards; the article frames it as a key “stay” mechanism.
Ticker impact
The Labor Department is suspending Microsoft from filing or having PERM applications processed, blocking a key green-card pathway for employees.
Likely downside bias as investors price higher hiring/retention friction and potential HR cost or talent pipeline disruption.
The article states PERM suspension prevents new filings and processing of existing pipeline, and Microsoft is described as the program’s biggest user, increasing perceived impact versus peers.
Market effects
Could pressure US tech and IT-services peers’ immigration sponsorship workflows, raising broader sentiment around foreign-talent hiring pipelines.
US-focused regulatory action may spill into broader US large-cap tech and IT services risk appetite.
US immigration policy tightening can affect multinational tech labor strategies and cross-border talent mobility expectations.
Counterpoint
Microsoft argues most filings were status extensions for existing employees and says it will provide additional information, so near-term labor impact may be less severe than the headline implies.
Key entities
- companyMicrosoft
Subject of the PERM suspension; described as the biggest PERM user and responding that most H-1B filings were for existing employees.
- government_officialJD Vance
Announced the suspension and criticized Microsoft’s use of the immigration system.
- government_agencyU.S. Department of Labor
Said it will not accept new PERM applications or process those already in the pipeline for the named companies.
- government_officialDonald Trump
Presented Nadella with the National Medal of Technology and Innovation hours after the PERM suspension announcement.
