Trump Administration Suspends Tech Giants from Permanent Residency Program

The Trump administration has suspended several major tech companies from the Labor Department's permanent labor certification program, known as PERM, which serves as a primary pathway for H-1B visa holders to obtain green cards. As Wired first reported, the companies affected include Microsoft, Adobe, and IT firms Cognizant, Infosys, and Tata.

Secretary of Labor Keith Sonderling stated that the agency is investigating whether these firms committed fraud to undercut American workers. Vice President JD Vance specifically targeted Microsoft, asserting during a press conference that no other company in the U.S. has abused the system more. Vance compared the current H-1B program to the importation of "indentured servants."

In response, Microsoft representative Kaitlin Haskins stated the company only files petitions for those meeting rigorous standards and noted that 80% of its 2025 visas were used to extend or change the status of current employees. Microsoft further claimed that new employee filings represent only 1% of its U.S. workforce.

The move was celebrated by Jobs Now, an advocacy group for U.S. citizens in big tech that has filed complaints regarding PERM abuse. The group maintains that every American job should be offered to a citizen first. This crackdown follows previous settlements involving Apple in 2023 and OpenAI earlier this year.

While the administration continues to support Microsoft—noting that CEO Satya Nadella is set to receive the National Medal of Technology and Innovation—Vance stated the company will remain barred from the residency program until it prioritizes American workers. Additionally, Department of Labor Inspector General Anthony D'Esposito noted that the administration is investigating nine universities for potential fraud involving the J-1 visa program.