The U.S. Department of Labor expanded its suspension from Microsoft to eight companies in the Permanent Labor Certification (PERM) Program, adding Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, and Adobe. Labor Secretary Keith Sonderling cited alleged worker-visa system abuse and said multiple federal investigations are ongoing.
- The department will not accept new or process pending PERM applications involving the affected companies.
- The reported action covers Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.
- The department’s announcement said that since 2009, the six major IT outsourcing companies named by Sonderling had received more than 230,000 H-1B visa approvals and more than 100,000 permanent labor certifications.
- The administration suspended Microsoft from new PERM cases for H-1B workers seeking employment-based green cards.
- Vice President Vance alleged Microsoft replaced U.S. workers with foreign hires, citing 6,000 layoffs, 6,300 H-1B visas and nearly 3,000 green cards.
- The action does not cancel existing H-1B visas or announce cancellation of PERM cases already filed; a separate proposed OPT fee rule remains open for comments through November 9, 2026.
The Trump administration suspended Microsoft from the H-1B green-card program on October 8, 2026, accusing the company of fraud and blocking it from starting new PERM labor-certification cases for H-1B workers seeking permanent residence. Vice President Vance announced the action at a White House news conference.
Free toolH-1B Cost Calculator OnlineThe company is headquartered in Redmond, Washington. It had not immediately responded to requests for comment.
The announcement targeted a pathway to employment-based green cards. It did not announce a suspension of the company’s H-1B visas.
Vance, whose full name is JD Vance, argued that the company replaced American workers with foreign hires. He put the accusation this way:
“For every worker that Microsoft laid off, they replaced that worker with 1½ foreign indentured servants.”
Vance used layoffs and visa figures to argue the company favored foreign hires
Vance said the company laid off 6,000 American workers during the previous year while receiving 6,300 H-1B visas and nearly 3,000 green cards. He called the arrangement a “scandalous system.”
Those numbers formed part of his case for the suspension. His central claim was that the company was replacing U.S. employees with foreign workers, though the announcement presented that as an allegation.
The administration’s stated action restricts the company’s ability to begin PERM labor-certification cases. It is not an announced cancellation of H-1B visas already held by workers.
The suspension blocks new green-card sponsorship filings
PERM is a labor-certification step in the employment-based green-card process. The suspension prevents the company from initiating new cases through that route for H-1B workers seeking permanent residence.
The administration did not announce that cases already filed would be canceled. The action addresses new sponsorship filings.
The distinction is central to the measure’s scope. H-1B visas cover employment in specialty occupations requiring highly skilled workers; the suspension concerns the later effort to secure permanent residence through employer sponsorship.
The administration also announced action against other employers
The administration announced action involving Adobe and other companies, Labor Department officials and Vance said. The Microsoft suspension came amid a broader set of measures aimed at employers using foreign-worker programs.
Vance also alleged that nine universities had committed J-1 visa fraud by relying disproportionately on the exchange-visitor program. The allegation broadens the administration’s accusations beyond employer-sponsored H-1B cases.
H-1B visas are used most heavily by technology companies. Nearly three-quarters of approvals reportedly go to workers from India.
A separate DHS proposal would charge schools for OPT approvals
The Department of Homeland Security proposed new charges on October 7, 2026, a day before the Microsoft announcement. The proposal sets a $70,000 charge for each initial Optional Practical Training authorization and $30,000 for each additional authorization, including a STEM OPT extension.
Schools, rather than students, would pay the proposed charges. The rule is not yet in effect, and public comments are scheduled to continue through November 9, 2026.
