Full Breakdown
Trump Administration Suspends Microsoft and Others from PERM Green-Card Program
By Drooid · · How we work
Suspension of Microsoft and Others from PERM Program
On October 8, 2026, Vice President JD Vance announced that the administration is suspending Microsoft, Adobe and several large IT outsourcing firms from the Permanent Labor Certification (PERM) program. The move, presented as a crackdown on alleged fraud, bars the named companies from submitting new PERM applications and halts processing of pending cases. Labor Secretary Keith Sonderling said the action targets firms that, in the administration’s view, use the program to replace U.S. workers with lower-paid foreign labor.
Background on H-1B and PERM
The H-1B visa is intended for high-skill positions that U.S. employers cannot fill with domestic workers. After an H-1B holder’s initial stay, employers must obtain a PERM certification before sponsoring the employee for an employment-based green card. The certification requires a demonstration that no qualified U.S. worker is available, often supported by job advertisements that the administration alleges are perfunctory.
Data & Statistics
- Microsoft laid off 6,000 American workers in the prior year while receiving 6,300 H-1B visas and nearly 3,000 green cards.
- Labor Department data cited by Sonderling indicate that, since 2009, the suspended firms collectively requested almost 3 million foreign workers, received over 230,000 H-1B approvals and more than 100,000 PERM certifications.
- Outsourcing firms are said to pay H-1B workers roughly $20,000 less than comparable U.S. employees; Vance noted a gap of about $48,000 for workers recruited through such firms.
- The Department of Homeland Security has also proposed a $70,000 fee for schools sponsoring international students in the Optional Practical Training (OPT) program.
Official Statements & Responses
Vice President Vance framed the suspension as a response to “foreign indentured servants” replacing American workers, emphasizing that the companies “are great American companies” but must “hire great American workers.” He added that the probe will also assess potential foreign influence in federally funded research.
Verbatim Quote
- “If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” — Vice President JD Vance
These statements capture the administration’s characterization of the alleged abuse and its intent to enforce stricter compliance with immigration-employment rules.
What’s Next
The PERM suspensions will remain in effect until the targeted companies adjust their hiring practices. Investigations into nine universities—including Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT—are expected to produce subpoenas and further enforcement actions. The DHS OPT fee proposal is open for public comment with a 30-day window for feedback.