Trump Administration Suspends Microsoft and Other Tech Firms from PERM Green-Card Program

On October 8, senior U.S. officials announced that the Department of Labor is suspending Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from the PERM (permanent labor certification) program. Vice President JD Vance framed the move as a warning that even “great American companies” must “hire great American workers.”

Reuters

The PERM process requires employers to certify that no qualified U.S. worker is available before filing an employment-based green-card petition. It is a prerequisite for most H-1B holders seeking permanent residency. Roughly 75 % of H-1B approvals go to workers from India, and technology firms are the largest users of the visa category.

Wired Magazine

Representative Beth Van Duyne (R-TX) introduced the H-1B Visa Fraud Crackdown Act on October 1. The bill would raise the maximum fine for serious violations from $35,000 to $250,000 and increase the minimum ban period from three to ten years. Lesser violations would see fines rise from $5,000 to $100,000, with bans extending from two to five years. The measure has five Republican cosponsors from Texas and must pass both chambers.

Newsweek

• JD Vance argued the suspension is necessary to curb “abuse” of the immigration system.

NBC News

• Secretary of Labor Keith Sonderling said the administration will not accept new or process pending PERM applications involving the listed companies.

Wired Magazine

• Inspector General Anthony D'Esposito announced subpoenas targeting universities to examine potential visa abuse affecting federally funded research.

Reuters

• Microsoft spokesperson Kaitlin Haskins noted the firm filed roughly 6,000 H-1B petitions last fiscal year, 80 % extensions and 1 % new hires, all already residing in the United States.

The Verge

• Microsoft’s H-1B filings last fiscal year: ~6,000 applications; 80 % extensions, 1 % new hires.

The Verge

• H-1B approvals: about three-quarters awarded to Indian nationals.

Newsweek

• Proposed penalty increases: fines up to $250,000; bans up to ten years for the most serious violations.

Newsweek

• “There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” — JD Vance

Wired Magazine

• “We will not accept any new or process any pending permanent labor certification applications involving these companies,” — Keith Sonderling

Reuters

The H-1B Visa Fraud Crackdown Act now proceeds to the Senate. The Department of Labor and the Inspector General will continue investigations into the suspended firms and the nine universities singled out for potential J-1 visa abuse.

Newsweek