The U.S. government has suspended Microsoft and Adobe from a major employment-based green card program, citing ongoing federal investigations and concerns over alleged immigration abuses.
Vice President JD Vance announced the decision on Thursday, confirming that Microsoft would be suspended from the Permanent Labor Certification (PERM) program.
The program allows U.S. employers to seek permanent residency sponsorship for eligible foreign workers, including employees currently holding H-1B visas.
Vance said the administration wants major technology companies to prioritize hiring American workers as part of its broader immigration policy reforms.
Microsoft, Adobe and Major IT Firms Face Green Card Restrictions
U.S. Labor Secretary Keith Sonderling confirmed that the restrictions extend beyond Microsoft and Adobe.
The Department of Labor is also suspending six major global IT outsourcing companies from the PERM program:
- Cognizant
- Infosys
- Tata Consultancy Services
- Wipro
- HCL
- Capgemini
According to Sonderling, Microsoft and Adobe face suspension because of multiple active federal investigations.
The government has raised concerns about potential misuse of employment-based immigration programs, although the investigations do not establish that the companies have committed wrongdoing.
The move represents a significant development for technology companies that rely on foreign skilled workers to fill specialized positions.
Trump Administration Targets H-1B and J-1 Visa Programs
The latest action comes as the Trump administration pushes forward with changes to employment-based immigration policies.
Vice President Vance confirmed that Washington is pursuing reforms involving both the H-1B visa program, commonly used by technology companies, and the J-1 exchange visitor program.
The administration argues that immigration policies should better protect employment opportunities for American workers.
However, the announced PERM suspensions specifically affect the companies’ participation in the permanent labor certification process. They do not automatically invalidate existing H-1B visas or prevent all foreign employees from continuing their work.
The restrictions could nevertheless complicate the permanent residency sponsorship process for affected employers and their eligible workers.
Microsoft Responds to U.S. Government Allegations
Microsoft responded to the announcement by expressing its willingness to provide additional information to the Trump administration.
The technology giant emphasized that most of its recent H-1B filings involved employees already working for the company.
According to Microsoft, approximately 6,000 H-1B visa applications were submitted during the previous fiscal year.
Of those applications, around 80% involved extensions or changes to the immigration status of existing employees rather than new hires.
Microsoft also explained that its remaining applications for new employees concerned individuals already legally residing in the United States.
The company said these workers represented approximately 1% of its U.S. workforce.
Additionally, Microsoft maintained that employees holding H-1B visas receive compensation comparable to American workers performing similar duties.
The company indicated that it intends to cooperate with federal officials as the administration reviews its immigration practices.
U.S. Investigates Major Universities Over J-1 Visas
The immigration crackdown has also expanded into the American higher education sector.
The U.S. Department of Labor announced investigations into nine major universities concerning their use of J-1 exchange visitor visas.
Institutions named in the investigation include:
- Harvard University
- Yale University
- Stanford University
- Brown University
- Massachusetts Institute of Technology (MIT)
A Labor Department official confirmed that federal subpoenas had been issued to universities as part of the investigations.
Meanwhile, the Department of Justice is examining allegations that certain employers may have favored foreign workers over qualified American applicants.
These investigations reflect the administration’s increasing scrutiny of immigration practices across major technology companies and academic institutions.
Microsoft and Technology Stocks React to Immigration Crackdown
The announcement triggered mixed reactions across technology stocks during Thursday’s trading session.
Microsoft shares declined approximately 1.7%, reflecting investor attention to the company’s regulatory challenges.
However, other affected companies experienced different market reactions.
Adobe shares gained around 1%, while Cognizant advanced approximately 2.4%.
Meanwhile, U.S.-listed shares of Infosys declined roughly 0.8%.
The mixed performance suggests investors were assessing the potential consequences for individual companies rather than reacting uniformly across the technology sector.
Nevertheless, restrictions on employment-based immigration programs could create additional uncertainty for businesses that depend heavily on internationally recruited talent.
What the Green Card Suspensions Mean for the Tech Industry
The latest U.S. green card program suspensions introduce another regulatory challenge for some of the world’s largest technology and IT outsourcing companies.
Employers that rely on the PERM process may face difficulties sponsoring certain foreign workers for permanent residency while the restrictions remain in place.
Additionally, the administration’s proposed H-1B and J-1 visa reforms could influence future hiring strategies across the technology and education sectors.
For Microsoft, Adobe, and other affected companies, attention will now turn to the federal investigations and whether the government eventually restores their participation in the program.
Investors will also monitor any further regulatory announcements that could affect workforce planning, recruitment costs, and long-term business operations.
For now, the developments highlight the growing importance of U.S. immigration policy in shaping the outlook for major technology companies.
