The United States has suspended Microsoft, Adobe and several major technology and IT services companies from a programme that allows skilled foreign workers to obtain permanent residency, escalating the Trump administration’s crackdown on employment-based immigration.
Vice President JD Vance announced the move on Thursday, accusing companies of exploiting the system to displace American workers. Labour Secretary Keith Sonderling said the government would neither accept new applications nor process pending permanent labour certification applications involving the affected firms.
The companies affected include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The restrictions target the Permanent Labor Certification programme, known as PERM, which requires employers to demonstrate that qualified and available US workers cannot be found for a particular position before sponsoring a foreign employee for permanent residency.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said at a White House news conference.
The administration has argued that some companies use the programme to hire foreign workers at lower wages, although officials did not provide specific evidence of wrongdoing by each company named in the suspension announcement. The affected businesses have not all publicly responded to the allegations.
Microsoft said the vast majority of its US employees are Americans. The company added that about 80% of the roughly 6,000 H-1B visa applications it submitted in the previous fiscal year involved extensions or changes of status for existing employees, rather than new hires. Applications for new employees accounted for about 1% of its US workforce, the company said.
The restrictions do not amount to a suspension of the H-1B visa programme, which allows skilled foreign professionals to work temporarily in the United States. Instead, they block the affected companies from using PERM to advance new or pending employer-sponsored green card applications. This could leave some workers on temporary visas for longer and complicate their plans to settle permanently in the country.
The move is part of a wider effort by President Donald Trump’s administration to tighten skilled-worker immigration. The administration has also pursued higher costs for certain H-1B petitions and increased scrutiny of programmes used by international students and foreign professionals.
Nine universities, including Harvard, Yale and Stanford, are also facing investigations over allegations that international student programmes were used to undermine American wages. Labour Department officials said subpoenas had been issued as part of the inquiries.
The restrictions could create additional challenges for technology companies that depend on international talent, particularly in specialised fields where recruitment is global. Immigration experts have warned that limiting pathways to permanent residency could make the United States less attractive to skilled professionals weighing job opportunities across countries.
Stay ahead of the Stories shaping our world. Subscribe to Impact Newswire and join our
WhatsApp Channel for updates on global tech, business, and innovation—all in one place.
Dive deeper into the future with the Cause Effect 4.0 Podcast, where we explore the ideas, trends, and technologies driving the global AI conversation.
Got a story to share? Contact Us to reach a global audience with Impact Newswire.
Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
Discover more from Impact Newswire
Subscribe to get the latest posts sent to your email.
