The Trump administration on Thursday suspended Microsoft, Adobe and six major global IT outsourcing firms from the federal programme that clears the path to most employment-based green cards, in the White House's most aggressive crackdown yet on alleged visa fraud. Vice President JD Vance accused the companies of gaming the system to replace American workers with cheaper foreign labour.

The announcement was made at a White House press conference by Vance, Labor Secretary Keith Sonderling and Attorney General Todd Blanche, acting under the aegis of the administration's federal anti-fraud task force, as reported by Reuters.

Table of Contents

  1. Which companies are suspended
  2. What the PERM programme is — and why it matters
  3. Microsoft singled out: the layoff-versus-visa figures
  4. Criminal probes and the universities drawn in
  5. How long will the suspension last?
  6. Key takeaways
  7. Frequently Asked Questions
  8. Sources
  9. Read more

Which companies are suspended

Eight companies are affected. Labor Secretary Sonderling announced the suspension of six of the world's largest IT outsourcing firms — Cognizant, Infosys, Tata, Wipro, HCL and Capgemini — from the Permanent Labour Certification (PERM) programme. The Department of Labor is also suspending Microsoft and Adobe, citing multiple active federal investigations, according to The Statesman.

"We will not accept any new or process any pending permanent labor certification applications involving these companies," Sonderling said.

Sonderling put the scale of the system in stark terms: since 2009, these companies alone have requested almost three million foreign workers.

What the PERM programme is — and why it matters

Under the PERM process, an employer must obtain certification from the Department of Labor confirming that there are no qualified, willing and available US workers for a specific position before filing most employment-based green-card petitions. It is a mandatory preliminary step — without it, the green-card pipeline effectively freezes.

Vance accused employers of abusing that process with token recruitment efforts. "They'll put an advertisement in a small-town newspaper," he said at the press conference. "They'll go out there and say that 'We have advertised for a position with our company, and nobody is responding to it.' And they will use that lack of response to then go and replace American workers with what is effectively foreign indentured servants," as reported by the South China Morning Post.

Microsoft singled out: the layoff-versus-visa figures

Vance reserved his sharpest language for Microsoft. "There has been no company in the United States, unfortunately, that has used this system more than Microsoft," he said. "Our message to Microsoft is: you're a great American company, but you've got to hire great American workers."

The vice president cited figures the administration says prove the abuse: Microsoft laid off 6,000 American workers in 2025 after certifying that it could not find qualified American employees — yet the company was approved for more than 6,000 H-1B visas and filed 3,682 PERM applications, including nearly 1,000 applications for the same positions as the laid-off American workers, according to the New York Post.

"For every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants," Vance told reporters. Microsoft did not immediately respond to a request for comment.

The H-1B programme, Vance argued, was meant to bring in "really the best of the best" for positions impossible to fill with American workers — not, in his words, to undercut domestic wages.

Criminal probes and the universities drawn in

Sonderling said the action follows ongoing criminal and federal investigations led by the Department of Labor's Inspector General. Labor Inspector General Anthony D'Esposito said subpoenas had already been issued, and the administration announced investigations into nine universities — including Harvard, Yale and Stanford — over allegations that international students were being used to undercut American wages, according to Emirates 24/7.

"We will investigate whether foreign influence, improper financial relationships, or visa abuse are compromising federally funded research," D'Esposito said.

The move fits a broader pattern: as Chronicle reported earlier this week, the administration has already threatened a major crackdown on foreign-worker visas, and fraud enforcement has become a signature theme of the White House's domestic agenda — including high-profile fraud cases pursued by its anti-fraud apparatus.

How long will the suspension last?

Asked whether the suspension was temporary or permanent, Vance was blunt: "The suspension of PERM is going to last as long as it needs to." The administration says the move is aimed both at stopping new permanent labour certification applications and halting the processing of pending ones under the programme — a double freeze that could strand thousands of workers mid-process.

The decision is expected to hit Indian technology professionals particularly hard, given the concentration of Indian-origin workers in the H-1B and employment-based green-card pipelines, and the inclusion of four of India's largest IT services firms in the suspension list.

Key takeaways

  • The US has suspended eight companies — Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini — from the PERM green-card programme over alleged fraud.
  • JD Vance singled out Microsoft, citing 6,000 US layoffs alongside 6,000+ H-1B approvals and 3,682 PERM filings.
  • The suspension blocks both new and pending permanent labour certification applications.
  • Nine universities, including Harvard, Yale and Stanford, face related investigations.
  • The suspension has no stated end date — it lasts "as long as it needs to."

Frequently Asked Questions

What is the PERM programme?

PERM — Permanent Labour Certification — is the Department of Labor process in which an employer must certify that no qualified, willing and available US worker exists for a position before it can petition for most employment-based green cards. It is the gateway step: without PERM approval, the green-card process cannot proceed.

Which companies are affected by the suspension?

Eight companies: Microsoft and Adobe (suspended over active federal investigations), plus the IT outsourcing firms Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. The Department of Labor will neither accept new nor process pending PERM applications involving them.

What is Microsoft accused of?

The administration alleges Microsoft laid off 6,000 American workers in 2025 after certifying it could not find qualified US employees, yet was approved for more than 6,000 H-1B visas and filed 3,682 PERM applications — including nearly 1,000 for the same positions as the laid-off workers.

Sources

Read more