Trump blocks Microsoft and seven firms from green card programme
WASHINGTON — The Trump administration has suspended Microsoft and seven other major technology companies from a programme used to secure permanent residency for foreign workers, accusing them of exploiting immigration rules while American employees lose their jobs.
US Vice President JD Vance announced the decision on Thursday, targeting Microsoft’s use of skilled foreign workers and alleging that the company had abused immigration procedures intended to protect American jobs.
The suspension affects the Permanent Labor Certification programme, known as PERM, which allows employers to demonstrate that hiring foreign workers will not adversely affect employment opportunities or wages for American workers.
Labour Secretary Keith Sonderling confirmed that authorities would stop accepting new applications and processing pending cases involving the affected companies.
Alongside Microsoft, the restrictions cover Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
The decision could disrupt the permanent residency applications of skilled professionals already employed in the United States, including workers who entered the country through the H-1B visa programme.
However, the suspension does not automatically cancel existing H-1B visas or require affected employees to leave the country.
Vance accused Microsoft of laying off approximately 6,000 American workers while obtaining 6,300 H-1B visas and nearly 3,000 green cards during the same period.
He argued that the figures demonstrated how companies were using foreign labour while reducing their American workforces.
Microsoft rejected the suggestion that its visa applications represented thousands of replacement workers.
The company explained that approximately 80% of its H-1B applications during the previous financial year involved extending or changing the immigration status of existing employees.
The remaining applications concerned new employees already legally residing in the United States, representing approximately 1% of Microsoft’s American workforce.
Microsoft also maintained that it pays H-1B employees the same as other workers performing comparable duties.
The administration has not publicly demonstrated that the employees Microsoft dismissed were directly replaced by the foreign workers covered by its visa applications.
The crackdown has also drawn criticism from immigration specialists who argue that preventing workers from obtaining permanent residency could make them more dependent on their employers.
Doug Rand, a former senior adviser at US Citizenship and Immigration Services, questioned the administration’s approach, explaining that permanent residency gives foreign workers greater freedom to change employers and negotiate their wages.
The announcement forms part of a broader immigration enforcement campaign that has also targeted American universities.
Nine institutions, including Harvard, Yale, Stanford and the Massachusetts Institute of Technology, are facing investigations into their use of J-1 exchange-visitor visas.
Authorities are examining allegations that some institutions used foreign workers in ways that undermined American wages. Several universities have confirmed receiving subpoenas or requests for information.
The measures come as the administration continues tightening immigration arrangements for skilled workers and international students.
For foreign technology professionals, the immediate consequence is uncertainty over employment-based permanent residency applications, particularly where their employers are among the eight companies affected.
Vance has not provided a fixed end date for the suspensions, saying they would remain in place for as long as necessary.
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