The White House blocked Microsoft and several other technology companies from accessing a traditional visa program used to hire skilled foreign workers, setting off an intense policy clash over corporate hiring practices and domestic labor displacement. Vice President JD Vance announced the decision on October 8, 2026, accusing the tech giants of committing fraud through the H-1B visa program and a related pathway that grants foreign employees permanent residency in the United States. During a White House press conference held before a message promising to “Protect American workers,” Vance was accompanied by Attorney General Todd Blanche and Deputy Chief of Staff Stephen Miller. The administration accused the firms of bringing in “foreigners to lower American wages.”
Microsoft and Tech Firms Banned From Permanent Residency Program
The federal government will no longer process new or pending applications under the Permanent Labor Certification Program, commonly known as PERM, for Microsoft and other companies. Alongside Microsoft, the indefinite ban targets software maker Adobe and several IT outsourcing companies, including Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Labor Secretary Keith Sonderling stated that these firms and certain universities have become “visa factories” that are “flooding” the U.S. with foreign staff. Vance explained that while the H-1B visa is the initial entry point, the PERM program is the mechanism that allows those employees to stay. He noted that the program requires companies to advertise jobs domestically first to prove a lack of qualified candidates.
Vance stated that Microsoft is the single largest abuser of the system, alleging the company laid off approximately 6,000 American workers last year while filing roughly 6,800 H-1B visa applications during the same period. He added that Microsoft obtained nearly 3,000 permanent residency cards in that time. An investigation determined Microsoft employed about 6,300 non-citizen workers brought in via H-1B visas. Vance declared, “Unfortunately, there has not been any company in the United States that has abused this system more than Microsoft.”
Federal officials also targeted elite higher education institutions over international student and researcher exchange programs. The administration placed nine universities under scrutiny—including Harvard, Yale, Stanford, Brown, the University of Pittsburgh, the University of California at Davis, the California Institute of Technology, the Massachusetts Institute of Technology, and Arizona State University—accusing them of misusing J-1 visas to suppress wages for domestic graduate students and researchers. Vance claimed that 61% of researchers on federally funded projects at these nine schools hold J-1 visas, compared to a national average of 38%.
Did You Know? The H-1B visa program has an annual statutory cap of 85,000 visas.
Microsoft defends international hiring practices against allegations
Microsoft forcefully rejected the administration’s allegations, maintaining that its international hiring practices adhere strictly to local wage standards. A company spokesperson told reporters that roughly 80% of the H-1B visa applications filed during the last fiscal year involved extensions or status modifications for existing employees rather than fresh hires. The company added that new hires who were already legally in the U.S. represent only 1% of its American workforce. Data compiled by immigration advisory firm Ellis shows that the average salary for an H-1B visa holder at Microsoft is $155,000. Representatives for the company emphasized that their international staff receive compensation equal to that of comparable local employees, and noted that the vast majority of Microsoft’s employees in the U.S. are Americans, within a global workforce of over 200,000 people.
The administration’s actions arrive against a backdrop of complex economic integration within Silicon Valley. Satya Nadella stood alongside tech leaders such as Elon Musk, Jensen Huang, Lisa Su, Sergey Brin, and Michael Dell at the White House to receive a medal from President Donald Trump.
What Happens Next for Migrant Tech Workers
He noted that obtaining a permanent residency card removes this dependency, allowing workers to negotiate higher salaries without fear.
Microsoft representatives stated they intend to provide federal authorities with additional information to contest the suspension.
Federal government suspends PERM applications for Microsoft and Adobe
Which companies are barred from the PERM program?
The federal government suspended PERM applications for Microsoft, Adobe, and several IT outsourcing companies.
How many H-1B visas are available annually?
The total number of H-1B visas is limited to 85,000 per year by federal statute.
What is the average salary of an H-1B worker at Microsoft?
According to data from Ellis, a firm assisting technology companies with foreign recruitment, the average salary for an H-1B visa holder at Microsoft is $155,000.
- Trump administration report says forced recruitment rises in Mexico
- Delhi deploys 23,000 security personnel ahead of proposed CJP protest
- NY Physical Therapist Sentenced to 15 Months for Amtrak Fraud Scheme (news-usa.today)
- Microsoft and Nvidia Reveal Surface Laptop Ultra and RTX Spark AI Hardware (archyworldys.com)