On October 10, 2026, the Trump administration suspended Microsoft, Adobe, and six IT services firms from the Labor Department's PERM program, which allows employers to sponsor foreign workers for green cards. This move came amid heightened scrutiny of H-1B visa practices in the tech sector [1]. Vice President JD Vance accused Microsoft of replacing 6,000 laid-off American workers in 2025 with foreign hires, stating, 'If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants' [1].
Data from the U.S. Citizenship and Immigration Services' H-1B Employer Data Hub shows that two-thirds of Microsoft's H-1B approvals went to individuals already employed at the company. In fiscal 2025, Amazon led the nation with 19,178 H-1B approvals, followed by Meta with 6,294, and Microsoft with 6,258. Despite Amazon's significantly higher number of new H-1B hires, it was not included in the suspension list [1].
The suspension affects the PERM program for green cards, which grant permanent residency, but does not impact H-1B visas, which are temporary work permits. The Labor Department's inspector general, Anthony D'Esposito, also announced an investigation into alleged J-1 visa fraud involving nine major American universities at the same news conference [1].
All eight suspended companies are among the nation's top 50 H-1B sponsors, with most being IT services and consulting firms. Adobe, the smallest among them, ranks No. 45. Microsoft, although out-sponsored by Amazon since 2017, remains a major player with over 6,000 H-1B approvals in fiscal 2025. The data highlights the reliance of tech companies on foreign workers, but also shows that a significant portion of Microsoft's H-1B approvals were for existing employees rather than new hires [1].
CONCLUSION
The Trump administration's suspension of Microsoft, Adobe, and other tech firms from green card sponsorship marks a significant escalation in immigration scrutiny for the tech sector. While the PERM suspension does not affect H-1B visas, the move underscores ongoing debates about the impact of foreign worker programs on American jobs. The market may face heightened uncertainty as investigations and policy changes continue.