Full Breakdown
Trump Administration Suspends PERM Labor Certification for Major Tech Firms and Launches J-1 Visa Probes
By Drooid · · How we work
Core Action and Companies Affected
On October 8, 2026, Vice President JD Vance and Labor Secretary Keith Sonderling announced that the Department of Labor will suspend the Permanent Labor Certification (PERM) program for seven technology firms—Microsoft, Adobe, Cognizant, Infosys, Capgemini, Tata, Wipro and HCL—for 180 days, with possible extensions. The briefing also disclosed federal investigations into nine universities—Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT—over alleged misuse of J-1 exchange-visitor visas.
Background on PERM and H-1B Pathways
PERM is the first step for employers to sponsor foreign workers for U.S. permanent residence. H-1B visas allow high-skill foreign nationals to work temporarily; many PERM filings follow an H-1B stint, converting temporary status to a green card. The administration has proposed ending the 60-day grace period for H-1B holders who lose employment, tying workers more tightly to their sponsoring firms.
Data on Visa Use and Job-Loss Claims
Vance asserted that Microsoft laid off 6,000 American workers last year while receiving 6,300 H-1B visas and nearly 3,000 green cards. Microsoft responded that most of its recent H-1B filings were extensions or status changes for existing employees, not new hires, and that the filings represented 1 % of its U.S. workforce. Department-of-Labor data show Microsoft filed about 1,680 permanent-status petitions through the third quarter ending September 30. USCIS records list Microsoft as the fifth-largest H-1B user in 2026, with 3,688 petitions, and note the company has used nearly 54,000 H-1B visas over the past decade.
Official Statements & Responses
Microsoft issued a corporate statement defending its visa practices and pledging to provide additional information. Harvard, Yale, Stanford and UC Davis said they would cooperate; MIT, Brown and the University of Pittsburgh confirmed receipt of subpoenas and are reviewing the requests.
Criticism & Opposition
Howard University professor Ron Hira called the suspension “very significant” but noted that existing protections for U.S. workers under the H-1B program have never been enforced. Ken Mahoney, president of Mahoney Asset Management, warned that restricting foreign talent could “halt innovation” and erode U.S. technological leadership.
Verbatim Quotes
- “We are cutting off the head of the snake — the companies that enabled this abuse for decades,” — Keith Sonderling
What’s Next
The Department of Labor indicated the PERM suspensions will remain in effect for at least 180 days, with extensions possible pending investigation outcomes. The administration also plans to finalize a proposed rule imposing a $103,265 fee on H-1B petitions, a measure expected to face legal challenges. Universities under investigation are expected to submit compliance documentation in the coming weeks, while the targeted firms have signaled intent to cooperate but have not indicated whether they will alter hiring practices pending the inquiry.