The Trump administration has announced that it will no longer allow Microsoft and several other tech companies to participate in the PERM program, which enables H-1B visa holders to apply for green cards. This decision affects companies including Adobe, Cognizant, Infosys, and Tata, as stated by administration officials on Thursday. The PERM program is a crucial step for H-1B visa holders seeking permanent residency, requiring employers to demonstrate that there are no qualified American workers available for the position.
Secretary of Labor Keith Sonderling indicated that the agency is investigating potential fraud by these companies, suggesting they may be undermining American workers by hiring foreign employees. Vice President JD Vance specifically criticized Microsoft, claiming it has excessively exploited the system.
In response, Microsoft representative Kaitlin Haskins stated that the company only files H-1B petitions for individuals who meet the strict criteria of the visa category, emphasizing its commitment to developing the workforce by hiring American workers and attracting global talent.
Adobe, Cognizant, Infosys, and Tata did not provide immediate comments on the situation. The suspension has been viewed positively by tech workers who have expressed concerns about losing job opportunities to immigrant workers. Jobs Now, an advocacy group for U.S. citizens in tech, celebrated the announcement and highlighted its efforts in helping Americans apply for numerous job openings.
This is not the first instance of tech companies facing scrutiny over the PERM program. Earlier in the year, OpenAI and a company it acquired settled allegations from the Trump administration regarding violations of the program's rules. Apple also reached a similar settlement in 2023.
The administration's stance on H-1B visas has caused concern among Silicon Valley companies, which are significant users of the program. In the fiscal year 2026, Amazon, Tata, and Infosys were the top three employers for H-1B visas, with Microsoft ranked fifth, having 3,688 visas approved in 2026, down from 6,258 in 2025. Microsoft noted that 80 percent of the previous year's visas were extensions or status changes for existing employees, with new hires representing only 1% of its U.S. workforce.
It remains unclear how this announcement will impact the ability of employees at these companies to apply for H-1B visas. The Office of the Vice President and the Department of Labor did not respond to requests for clarification.
Vance remarked that while he supports individuals like Elon Musk who contribute to innovation in America, he believes the current H-1B program resembles a system that brings in 'indentured servants' and takes jobs from American workers. The announcement coincided with an upcoming event where Microsoft CEO Satya Nadella was to receive the National Medal of Technology and Innovation. Vance stated that while they would maintain a good relationship with Microsoft, the company must prioritize American workers to regain access to the permanent residency applications.
Additionally, Vance mentioned that the administration is investigating nine universities for potential fraud related to the J-1 visa program, which permits international candidates to study and conduct research in the U.S. Department of Labor Inspector General Anthony D'Esposito emphasized a strict stance against any violations that harm American citizens.