Trump Administration Questions Microsoft’s H-1B Applications After Major Outage

Labor Department Inspector General Anthony D'Esposito criticized Microsoft's H-1B application volume on November 13, 2026, a day after an outage disrupted Outlook and other services. The Trump Administration had already challenged the company’s visa use, but D'Esposito’s post was a public criticism, not a change to workers’ immigration status.

The Microsoft outage affected service users on November 12. Separately, the administration’s existing PERM suspension halts new and pending employer-sponsored green-card labor certifications at Microsoft and seven other employers. Current H-1B status and jobs remain unaffected by that pause.

“Outlook is back,” D'Esposito wrote on X. “Microsoft can process 6,000 H-1B applications, but processing your inbox is apparently a tougher assignment.”

Microsoft’s services affected by the disruption included Outlook, Teams, Copilot, SharePoint Online and OneDrive. Most services were restored by the morning of November 13.

Microsoft identified an overwhelmed core process on affected servers as one factor in lost capacity. The company said there was no indication the outage involved malicious activity or a cyberattack. It also said changes intended to improve service were not working as expected, and it was seeking alternate ways to increase capacity while continuing restoration work.

Microsoft says most filings covered existing employees

Vice President JD Vance had accused Microsoft of using visa and green-card programs to replace American workers. At an October announcement, he cited 6,000 American workers laid off, 6,300 H-1B visas obtained and almost 3,000 green cards. He characterized those figures as evidence that the company replaced laid-off workers with foreign employees.

Microsoft disputes that account. The company said 80% of its roughly 6,000 H-1B applications in the last fiscal year sought extensions or changes of status for people already employed there, rather than new hires. It said the remaining applications for new employees covered people already legally in the United States.

U.S. Citizenship and Immigration Services data show Microsoft received 6,258 H-1B approvals in fiscal year 2025. Some approvals may have been renewals for existing visa holders, so the approval total is not a count of new hires.

Microsoft President Brad Smith called the administration’s replacement claim “off base.” He said most visa and green-card applications involved people who already worked at Microsoft.

The PERM pause blocks green-card steps, not current H-1B status

Vance announced the suspension on October 8, 2026, accusing Microsoft of fraud in its use of the labor-certification process. The action covers eight employers: Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini.

PERM is a required labor-certification step in many employer-sponsored green-card cases. The suspension prevents the affected companies from filing new PERM applications or moving pending cases forward. Previously certified PERMs and approved I-140 petitions were not automatically revoked.

Workers already in H-1B status retain that status, and their jobs are not affected by the pause. A worker may also pursue a regular H-1B transfer to an employer outside the named group.

The pause can create uncertainty for employees approaching the six-year H-1B limit, because some extensions depend on the timing of a labor-certification filing or immigrant petition. The Labor Department has not provided an end date. Workers affected by the pause should watch Labor Department updates on the PERM suspension.