Trump administration suspends Microsoft, Adobe from green card program, citing visa fraud

On October 8, 2026, the Trump administration suspended Microsoft, Adobe, and six major IT outsourcing companies—Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini—from the Permanent Labor Certification Program (PERM), which allows foreign workers on H-1B visas to apply for permanent US residency. Vice President JD Vance announced the suspension at a White House press conference, accusing the firms of systematically abusing the visa system to replace American workers with lower-paid foreign labor. Vance stated that Microsoft laid off approximately 6,000 American workers in the past year while simultaneously receiving 6,300 H-1B visa approvals and nearly 3,000 green cards, describing this as a pattern of replacing workers with "foreign indentured servants." He characterized H-1B visa holders as indentured because they must leave the country if their sponsoring employer terminates their employment.

Microsoft disputed the accusations in a statement, asserting that 80% of its approximately 6,000 H-1B filings in the previous fiscal year were to extend or change status for existing employees, not to hire new workers. The company stated that remaining 20% of applications covered individuals already legally present in the United States. Microsoft also rebutted claims of wage suppression, stating that international workers are paid at parity with US employees in comparable roles, with median H-1B salaries at the company reported at $155,000. The company expressed willingness to provide additional information to the administration.

Simultaneously, the Labor Department announced investigations into nine universities—Harvard, Yale, Stanford, Arizona State, Brown, MIT, University of Pittsburgh, UC Davis, and Caltech—for allegedly misusing J-1 exchange visas for international students and researchers. Labor Department Inspector General Anthony DeEsposito stated that subpoenas had been issued and investigations were underway. The administration alleged that universities use international researchers at lower wages, effectively flooding the labor market and suppressing American wages. Labor Secretary Keith Sonderling characterized universities and firms under investigation as "visa mills." Stanford said it complies with all applicable visa laws and would cooperate with the investigation. Brown University and Arizona State University similarly stated they would cooperate with authorities.

The action marks the latest Trump administration effort to restrict immigration pathways, particularly targeting the H-1B program, which caps approvals at 85,000 per year and is used predominantly by technology companies. Approximately three-quarters of H-1B approvals go to workers from India. Critics of the program, particularly Trump administration supporters, argue it undercuts American workers and wages. Economists have historically contended that H-1B visa holders increase US productivity and may raise wages for American workers.

In a notable contrast occurring hours after Vance's announcement, President Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation at a White House ceremony. Nadella, who came to the US on an H-1B visa in the 1990s and later became a permanent resident and citizen, was recognized alongside other technology executives including Elon Musk (Tesla founder), Jensen Huang (Nvidia CEO), Lisa Su (AMD CEO), Sergey Brin (Google co-founder), and Michael Dell (Dell Technologies CEO). Trump described Nadella as "completely deserving" of the honor and praised him as an early leader in artificial intelligence and machine learning.