US Suspends Microsoft, Adobe From Green Card Program

The U.S. government has suspended Microsoft, Adobe, and several major IT companies from a federal employment-based green card program as the Trump administration intensifies scrutiny of foreign worker hiring practices.

Vice President JD Vance announced Thursday that Microsoft would be suspended from the Permanent Labor Certification (PERM) program, citing allegations of fraud. The program allows U.S. employers to sponsor eligible foreign workers, including H-1B visa holders, for permanent residency.

"The message to Microsoft is you’ve got to hire American workers," Vance said, emphasizing the administration's efforts to prioritize domestic employment.

Labor Secretary Keith Sonderling confirmed that the restrictions also affect major IT outsourcing companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini.

Sonderling said Microsoft and Adobe were being suspended because of multiple ongoing federal investigations, while the broader measures target employment practices involving foreign workers.

The announcement comes as the Trump administration pursues reforms to the H-1B and J-1 visa programs, seeking tighter oversight of companies and institutions employing international workers.

Microsoft defended its hiring practices, explaining that approximately 80% of its 6,000 H-1B visa applications during the previous fiscal year involved extensions or status changes for existing employees rather than new hires.

The company added that applications involving new employees represented just 1% of its U.S. workforce. Those individuals were already legally residing in the United States before joining Microsoft.

"We pay our H-1B employees the same as any other employees doing comparable work," Microsoft stated, adding that it welcomed the opportunity to provide additional information to the administration.

Meanwhile, the Labor Department launched investigations into nine prominent American universities over potential J-1 visa violations. Institutions under scrutiny include Harvard, Yale, Stanford, Brown, and the Massachusetts Institute of Technology. Federal officials confirmed that subpoenas had been issued.

The Justice Department is also investigating allegations that certain employers favor foreign workers over American applicants.

The announcement triggered mixed reactions among technology stocks. Microsoft shares declined approximately 1.7% Thursday, while Adobe gained 1%. Cognizant rose 2.4%, and U.S.-listed Infosys shares slipped 0.8%.

The suspensions highlight growing regulatory pressure on technology companies that rely on foreign talent as Washington moves to strengthen enforcement of U.S. immigration and employment regulations.