WASHINGTON, USA — The Trump administration has suspended Microsoft and seven other major technology and IT services companies from a federal program central to employment-based green cards, escalating its campaign against hiring practices it says disadvantage American workers.
Labor Secretary Keith Sonderling said the government would neither accept new nor process pending permanent labor certification applications involving Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Officials cited alleged fraud and ongoing investigations.
A Residency Freeze, With Wider Consequences
The action targets the Permanent Labor Certification program, known as PERM, rather than automatically revoking existing H-1B visas. PERM generally requires employers to demonstrate that qualified, willing and available U.S. workers cannot fill a position, and that hiring a foreign worker will not undermine comparable workers’ wages or working conditions. Certification is a preliminary step toward permanent residency, not a green card itself.
That distinction matters. The immediate disruption concerns employees’ prospects for settling permanently in the United States. Over time, however, delays could also complicate continued employment for some workers approaching the usual six-year H-1B limit: certain extensions depend on qualifying steps in the green-card process. The consequences will vary by individual immigration history.
Worker Protection — and an Unresolved Case
Vice President JD Vance framed the suspension as a defense of American jobs, accusing Microsoft of using recruitment practices that favored foreign workers while cutting its domestic workforce. Those assertions remain allegations; the announcement does not establish that particular foreign hires replaced particular dismissed Americans.
Microsoft had not immediately responded to Reuters’ request for comment. The suspension’s duration remained unclear, leaving employees and employers without a firm timetable for resuming sponsorship.
The domestic policy question is whether enforcement can identify discriminatory recruitment without broadly disrupting lawful hiring. Layoffs and immigration approvals alone cannot resolve that question; the decisive evidence concerns how employers advertised positions, assessed American applicants and documented their recruitment.
The International Stakes
The inclusion of Infosys, Tata, Wipro and HCL gives the decision particular significance for India’s technology sector. Indian professionals pursuing U.S. permanent residency face added uncertainty, although the announcement is not a blanket suspension of their H-1B visas.
For multinational employers, the likely pressure point is retention. A company unable to offer a predictable residency pathway may become less attractive to internationally mobile specialists, creating incentives to place more work overseas. That is a prospective economic consequence, rather than an outcome already demonstrated.
The political tension is striking: the crackdown came as President Trump was scheduled to honor Microsoft chief executive Satya Nadella with the National Medal of Technology and Innovation. Washington is simultaneously celebrating the industry’s achievements and challenging the immigration pathways that help sustain its workforce.