Trump Administration Suspends Microsoft From Major Green Card Program Over Alleged Foreign Worker Visa Abuse

The Trump administration has suspended Microsoft and several major technology companies from a federal immigration program that allows employers to sponsor foreign workers for permanent residency, accusing the corporations of abusing the system at the expense of American workers.

Vice President JD Vance announced the sweeping action Thursday, singling out Microsoft for allegedly relying on foreign labor while laying off thousands of American employees. The administration says the suspensions are part of a broader federal crackdown on employment-based immigration fraud and questionable hiring practices.

Vance pointed to Microsoft’s decision to lay off approximately 6,000 American workers in 2025 while benefiting from 6,300 H-1B visas and nearly 3,000 green cards. He argued that the figures raise serious questions about whether the company has been using immigration programs to replace domestic workers with lower-cost foreign employees.

The vice president described the situation as unacceptable and said major American corporations should prioritize qualified domestic workers. He accused Microsoft of participating in a system that allows companies to reduce labor costs while American technology professionals struggle to find employment.

The administration’s action targets the Permanent Labor Certification program, commonly known as PERM. The program is generally a required step for employers seeking to sponsor foreign nationals for employment-based green cards, and it includes safeguards intended to protect American workers from unfair displacement.

Labor Secretary Keith Sonderling confirmed that Microsoft is not the only company facing restrictions. Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini have also been suspended from participating in the program.

Sonderling announced that the Labor Department will stop accepting new permanent labor certification applications involving the affected companies and will halt the processing of pending applications. The restrictions could affect foreign employees who are seeking permanent residency through their employers.

According to federal officials, the companies targeted by the administration have collectively requested nearly 3 million foreign workers since 2009. During that period, they received more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.

Sonderling argued that the figures demonstrate the enormous scale of corporate reliance on foreign labor programs. He said the administration intends to ensure that immigration laws are not used to undermine wages or reduce employment opportunities for Americans.

The suspensions follow an expanded federal investigation into alleged abuses of the H-1B visa system. The program permits employers to hire foreign nationals for specialized occupations, particularly in industries such as technology, engineering and scientific research.

Supporters of the H-1B program argue that it helps American companies recruit workers with specialized skills that can be difficult to find domestically. The Trump administration maintains that some employers have exploited the system to obtain less expensive labor rather than addressing genuine workforce shortages.

The allegations against Microsoft and the other companies have not been established through final public findings of fraud. The administration’s figures also do not independently establish that individual foreign workers directly replaced the American employees who were laid off.

Microsoft and Adobe had not immediately issued public responses to the announcement. The administration indicated that the restrictions could remain in place while federal investigators examine the companies’ hiring practices and compliance with immigration requirements.

The announcement comes as President Trump continues pursuing changes to employment-based immigration programs. His administration has previously sought higher fees for certain H-1B applications and expanded investigations into companies suspected of improperly using foreign labor certifications.

Federal officials also announced investigations into nine major universities, including Harvard, Yale, Stanford and MIT, over allegations involving the J-1 exchange visitor program. Investigators are examining whether the institutions improperly used foreign students and researchers in ways that disadvantaged American workers.

Vance said the administration’s objective is to ensure that immigration programs serve legitimate workforce needs rather than allowing employers to bypass American applicants. The latest suspensions represent one of the administration’s most significant enforcement actions against major technology companies over their use of employment-based immigration programs.