U.S. Targets Tech Firms in Green-Card Hiring Crackdown

The U.S. Department of Labor announced that it would suspend Microsoft and Adobe from its Permanent Labor Certification program, with Labor Secretary Keith Sonderling saying the department would stop accepting or processing new applications from the companies and several other firms. The list also includes Cognizant, Infosys, Capgemini, Tata, Wipro and HCL. Sonderling said Microsoft and Adobe were suspended because of “multiple active federal investigations.” He argued that the companies’ use of foreign-worker programs had displaced American workers, citing nearly 3 million foreign-worker requests, more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications across the companies since 2009. Vice President JD Vance singled out Microsoft, alleging that it replaced some of the 6,000 workers it laid off in 2025 with H-1B visa holders. He said the administration would withhold the company’s ability to apply for permanent-residency certifications until it demonstrated a commitment to American workers. Microsoft disputed that characterization, saying most of its U.S. employees are Americans and that 80% of its roughly 6,000 H-1B applications in the last fiscal year were extensions or changes of status for existing employees. It also said its H-1B petitions were for qualified workers and that its wages for those workers ranked among the highest in filings. The announcement came amid broader administration scrutiny of immigration and foreign hiring before the November midterm elections. It coincided with President Donald Trump’s presentation of National Medals of Science to Microsoft CEO Satya Nadella and other technology leaders, including Jensen Huang, Elon Musk and Lisa Su, all of whom immigrated to the United States. Vance distinguished these executives from other foreign workers, saying Americans would support people who come to the country to build businesses. The article also notes that major technology companies have long sponsored H-1B visas; 2026 petition data listed Amazon first, followed by Cognizant and EY, with Microsoft fourth at 21,706 petitions and a median base salary of $180,710. Adobe had not responded to CNBC’s request for comment.

The Trump administration announced that it was suspending several major technology and IT outsourcing companies from applying through the Permanent Labor Certification Program (PERM), a process that can help foreign workers obtain employment-based green cards. Labor Secretary Keith Sonderling named Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, and said the suspensions were connected to ongoing federal investigations. The article’s headline also names Microsoft and Adobe, while the body focuses on Microsoft and the listed outsourcing firms. Vice President JD Vance accused Microsoft of making extensive use of PERM in a way that, he argued, could disadvantage American workers. He said companies advertise positions, then point to a lack of applicants as justification for hiring foreign workers, whom he characterized as “effectively foreign indentured servants.” The announcement came hours before President Donald Trump was scheduled to present Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation. Microsoft said it welcomed the opportunity to provide the administration with more information. It stated that most of its employees are Americans and that many of its H-1B filings concern people already living in the United States. The company also said its employees receive high compensation and that its wages are among the highest in H-1B filings. The article notes that Microsoft’s 2025 annual report lists 125,000 US workers and 103,000 international workers. It places the dispute within the administration’s broader immigration crackdown and longstanding concerns that the H-1B skilled-worker visa program can displace American workers in favor of lower-cost foreign labor.

The article reports on the Trump administration’s suspension of the PERM labor-certification process for eight major technology companies: Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini. Indian-American entrepreneur Vivek Wadhwa argues that these companies are not the main perpetrators of visa abuse. He says that staffing intermediaries known as “IT bodyshops,” which recruit workers for larger firms and allegedly exploit the visa system, should instead be targeted. Wadhwa also argues that the United States has benefited greatly from skilled immigrants and risks turning away valuable talent.

The article describes a contrast in the Trump administration’s actions toward Microsoft. On the same day Vice President JD Vance criticized the company for relying on foreign workers, President Donald Trump was preparing to recognize Microsoft CEO Satya Nadella at a White House ceremony with what the article calls America’s highest technology awards. Vance said the administration did not want to damage its relationship with Microsoft, but wanted to pressure the company to prioritize American workers. He also said Microsoft would be denied the ability to apply for permanent residencies until it demonstrated a commitment to that priority. The article provides biographical and regional context for Nadella, who was born in Hyderabad, moved to the United States for graduate studies, and became Microsoft’s CEO in 2014. It also notes Vice President Vance’s family connection to India: his wife, Usha Vance, is the daughter of Indian immigrants Krish and Lakshmi Chilukuri, whose family has roots in Andhra Pradesh. Her parents moved to the United States around 1980 and pursued academic careers in San Diego. The report links these connections to Microsoft’s presence in Hyderabad, where the company opened its India Development Centre in 1998. The centre is described as Microsoft’s largest research and development facility outside its Redmond headquarters, with about 20,000 employees. The article closes with Vance’s message that Microsoft is a great American company but should hire American workers. Overall, it presents the administration’s award for Nadella alongside its employment-related pressure on Microsoft, while emphasizing the Indian connections of both Nadella and Vance’s family.