US suspends Microsoft, tech firms from green-card program

Vice President JD Vance announced at a White House news conference on Oct. 8, 2026, that Microsoft is suspended from the Department of Labor PERM program used to seek permanent residency for foreign workers, including some on H-1B visas. Labor Secretary Keith Sonderling also suspended Cognizant, Infosys, Tata, Wipro, HCL, Capgemini and Adobe. Vance said Microsoft laid off 6,000 American workers in 2025, was approved for more than 6,000 H-1B visas, and filed 3,682 PERM applications, nearly 1,000 matching laid-off workers' jobs. Shares moved about +0.2% for Microsoft, +0.4% Adobe, -0.7% Cognizant and -2.2% Infosys. Cognizant had been suspended from PERM in September 2026. Contested: Vance said there has been no company in the United States that has abused this system more than Microsoft and that for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants. He said the H-1B programme has become rife with fraud and the message to Microsoft is you've got to hire American workers. The Labor Department is investigating nine universities over J-1 visas, with subpoenas served, per Anthony D'Esposito. A September 2026 proclamation extended H-1B entry limits and a $100,000 petition payment. The suspension affects new PERM filings and does not by itself cancel existing worker status.