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Trump Admin Suspends Microsoft, Adobe from Green Card Program Over Visa Abuse Claims
The Trump administration suspended eight tech companies, including Microsoft and Adobe, from the permanent labor certification program on October 8, 2026, alleging widespread fraud in hiring foreign workers. Vice President JD Vance said Microsoft laid off 6,000 American workers while obtaining thousands of H-1B visas and green cards, characterizing the practice as replacing U.S. workers with "foreign indentured servants." The move is part of a broader immigration crackdown targeting international students and universities.
Quick Facts
- Eight tech companies suspended from permanent labor certification program
- Government will not accept new or pending labor certification applications from suspended firms
- Vance accused Microsoft of abusing the visa system more than any other U.S. company
- Proposed $70,000 fee for international students seeking to work through OPT program
- Nine universities called for investigation over alleged J-1 visa abuse
The Trump administration suspended eight technology companies from the permanent labor certification program on October 8, 2026, accusing them of fraud and abuse in the visa system. The suspended companies are Microsoft, Adobe, Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro. Labor Secretary Keith Sonderling announced the government would not accept any new or pending permanent labor certification applications from these firms. Vice President JD Vance, heading a fraud task force, said the program—designed to show insufficient U.S. workers are available for a position—has become "rife" with fraud over recent years.
Vance specifically targeted Microsoft, stating: "There has been no company in the United States, unfortunately, that has abused this system more than Microsoft." He cited figures showing Microsoft laid off 6,000 American workers in the prior year while obtaining 6,300 H-1B visas and nearly 3,000 green cards. Vance characterized the practice as replacing American workers with "foreign indentured servants," noting that H-1B workers cannot stay in the country if they lose employment and often earn less than U.S. counterparts in identical roles. According to Labor Secretary Sonderling, Microsoft and Adobe together "requested almost 3 million foreign workers," received "over 230,000 H-1B visa approvals," and obtained "over 100,000 permanent labor certifications."
The suspension is part of a broader immigration crackdown by the Trump administration. On the same day, the administration announced a proposed $70,000 fee for international students seeking to work in the United States through the Optional Practical Training (OPT) program. Vance also called for investigation into nine universities—including Harvard, Yale, Stanford, and MIT—over alleged abuse of J-1 visas for international students, suggesting the programs undermine American worker wages.
The announcement created tension within the administration's approach to the technology sector. Hours before Vance's suspension announcement, President Trump was scheduled to present the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella as part of a ceremony honoring tech leaders. Microsoft has not publicly responded to the allegations. H-1B visas are designed for high-skilled positions employers claim are difficult to fill with qualified U.S. workers; technology companies are the largest users of the program, with nearly three-quarters of approved visas going to workers from India.
Why This Matters
The suspension bars eight major technology companies from applying for permanent labor certifications, affecting their ability to sponsor foreign workers for permanent residency. This directly impacts hiring practices in the technology sector, where approximately 75% of H-1B approvals go to Indian workers. The government's simultaneous proposal of a $70,000 fee for international students in Optional Practical Training programs and investigations into nine universities alters the economic calculus for hiring international talent and shifts policy enforcement of existing visa programs. Measurable effects include restricted labor certification pathways, potential cost increases for hiring international workers, and possible policy changes to student work authorization programs.
Timeline & Sources
Oct 7, 2026
WireDepartment of Homeland Security proposes $70,000 fee for international students seeking to work through Optional Practical Training (OPT) program
Oct 8, 2026
WireVice President JD Vance announces suspension of 8 technology companies from permanent labor certification program
Oct 8, 2026
WireAP reports Trump planned to award Nadella the National Medal of Technology and Innovation same day as Vance suspension announcement
Oct 9, 2026
WireHomeland Security proposes $70,000 fee for international students in Optional Practical Training program
Related Signals
Sources
- US Suspends Visa Program for Tech Firms Including Microsoftbloomberg.comWireOct 8, 2026
- The Trump administration is suspending Microsoft from a green card program, alleging fraudAP NewsWireOct 8, 2026
- Trump Microsoft Nadella Musk Ai 5507d1625d3026185602287ffb43cf45apWireOct 8, 2026
- Eeuu Microsoft Visas Vance A00f64a26a24f8cd1468e6296aa5c764apWireOct 8, 2026
- US Suspends Visa Program for Tech Firms Including MicrosoftbloombergWireOct 8, 2026
- US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workerstechcrunchMediaOct 8, 2026
- Trump administration says Microsoft ‘abused’ worker visa program and is cutting off accessThe VergeMediaOct 8, 2026
- Vance says Microsoft is being suspended from program to apply for green cards for H-1B visa workersny1.comMediaOct 8, 2026