The Trump administration will no longer allow Microsoft and other tech companies to participate in a program that allows H-1B visa holders to apply for green cards, one of the most common pathways for skilled foreign workers seeking permanent residency in the United States.
In addition to Microsoft, administration officials said on Thursday that software giant Adobe and IT companies including Cognizant, Infosys, and Tata will be suspended from the PERM program, the Labor Department’s permanent labor certification program. PERM is a key step for H-1B visa holders to gain permanent residency, requiring employers to prove that there are no American workers who would be suitable for the applicant’s permanent job opportunity.
Secretary of Labor Keith Sonderling said that the agency is investigating whether these companies committed fraud, undercutting American workers by hiring foreign employees.
Vice President JD Vance, meanwhile, singled out Microsoft. “There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” Vance said during a press conference.
In a statement provided by Microsoft representative Kaitlin Haskins, the company said it “only files H-1B petitions for those who meet the rigorous standards of this visa category,” adding that it develops its workforce by “strengthening this country’s talent pipeline, hiring American workers, and attracting the best talent from around the world.”
Adobe, Cognizant, Infosys, and Tata did not immediately respond to WIRED’s request for comment.
The suspension marks a victory for tech workers who have complained about unfairly losing out on jobs to immigrant workers.
Jobs Now, an advocacy group composed of US citizens working in big tech, celebrated Vance’s announcement on its X account with a video of dancing crabs. The group publicizes otherwise difficult-to-find PERM job postings and says it helped Americans apply to nearly 500,000 jobs across 7,000 employers between last January and this past July.
The organization and its members have also filed complaints against tech companies about alleged abuse of the PERM system, and have called for a number of changes to the employment immigration system. “Every job in America should be offered to an American first, no exceptions,” the group told WIRED in an unsigned statement.
This isn’t the first time tech companies have been targeted over PERM. Earlier this year, OpenAI and a company it acquired agreed to settle accusations from the Trump administration about violating rules for the program. Apple reached a similar deal in 2023.