Trump administration suspends Microsoft, Adobe and other tech firms from green‑card program amid visa‑fraud accusations
On Oct. 8 the U.S. Labor Department announced that Microsoft, Adobe and several Indian outsourcing firms are barred from the Permanent Labor Certification (PERM) process, halting new and pending green‑card applications. Vice President JD Vance said the companies abused the system, citing Microsoft’s layoff of 6,000 U.S. workers while receiving 6,300 H‑1B visas and almost 3,000 green cards. The Department also opened investigations into nine top universities for alleged J‑1 visa misuse. Microsoft responded that roughly 80 % of its recent H‑1B filings were to extend or modify the status of current staff, not to bring in new hires.
Why it matters
The suspension removes a primary pathway for the companies to secure permanent residency for foreign talent, potentially limiting their ability to hire and retain skilled workers (the company says). The Department of Labor also warned of $31 billion in alleged visa fraud, underscoring heightened regulatory scrutiny for the tech sector.
Key facts
- 1Vice President JD Vance said Microsoft laid off 6,000 American workers last year while receiving 6,300 H‑1B visas and nearly 3,000 green cards. newsindiatimes.com
- 2The Labor Department suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini from filing new or pending PERM applications. newsindiatimes.com
- 3The suspension also includes investigations of nine universities, among them Harvard, Yale and Stanford, for possible J‑1 visa abuse. newsindiatimes.com
- 4Microsoft stated that about 80 % of its H‑1B filings in the most recent fiscal year were to extend or change the status of existing employees. ia.acs.org.au
- 5The Department of Labor claimed it had uncovered $31 billion in fraud related to the visa program. ia.acs.org.au
- 6Infosys said it does not expect a material impact from the suspension. ia.acs.org.au
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.