US suspends Microsoft, Adobe and six IT firms from green card program

United States Suspends Microsoft and Major Tech Providers From Green Card Program

On October 8, 2026, the United States government suspended Microsoft, Adobe, and six major IT outsourcing firms from a key federal green card sponsorship program, citing an ongoing crackdown on employment-based immigration practices.

The Tech TL;DR:

• The Department of Labor halted new Permanent Labor Certification (PERM) applications and paused pending cases for Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.
• Vice President JD Vance claimed Microsoft laid off approximately 6,000 American employees over the past year while securing 6,300 H-1B visas and nearly 3,000 green cards, though the company countered that 80% of its H-1B filings extended current employee statuses.
• Federal officials also launched investigations into nine major universities, including Harvard, Yale, and Stanford, regarding potential misuse of J-1 exchange visitor programs.

Scope of the Permanent Labor Certification Freeze

According to the article, Labor Secretary Keith Sonderling stated that the Department of Labor will not accept new PERM applications or process pending requests involving the eight targeted technology corporations. The PERM program serves as the mandatory foundational step for employers sponsoring foreign professionals for employment-based permanent residency. While existing H-1B temporary visas remain valid, the freeze disrupts the pipeline through which these technical employees transition to green cards.

The article noted that the restriction follows earlier administrative actions, including a $100,000 fee requirement on new H-1B petitions introduced under a White House executive order and the Labor Department’s “Project Firewall” enforcement initiative, which has initiated approximately 200 cases and levied millions in fines.

Contrasting Claims on Layoffs and Visa Utilization

During a White House announcement, Vice President JD Vance criticized Microsoft’s workforce management, stating that the tech giant reduced its domestic headcount by 6,000 employees while obtaining thousands of temporary visas and permanent residency certifications. Vance argued that the immigration structure enables firms to substitute lower-paid foreign personnel for local engineers.

The article reported that Microsoft issued a public statement clarifying that roughly 80% of its H-1B filings during the recent fiscal year aimed to extend or modify the status of existing staff rather than recruit fresh workers from abroad. The company also maintained that its visa-holding employees receive compensation equivalent to peers performing comparable duties. Additional targets of the suspension—including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini—did not immediately provide public responses to the federal directive.

Unresolved Implementation Details and Next Steps

Federal officials have not disclosed how many individual employee files are impacted by the suspension, nor have they established a timeline for lifting the restrictions on the designated technology firms.

Disclaimer: The technical analyses and security protocols detailed in this article are for informational purposes only. Always consult with certified IT and cybersecurity professionals before altering enterprise networks or handling sensitive data.