US suspends Microsoft, other IT firms from key green card program

• Suspended IT firms include Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, blocking their ability to sponsor foreign workers for permanent residency through the PERM program
• Vice President JD Vance stated the message to Microsoft is 'you've got to hire great American workers,' framing the action as prioritizing domestic employment over foreign worker programs
• Nine major universities received subpoenas for investigation into alleged visa abuse, improper financial relationships, and whether foreign influence is compromising federally funded research

Summary: US Suspends Major Tech Firms from Green Card Program

The U.S. government announced the suspension of Microsoft, Adobe, and several major IT firms from the PERM program, which enables skilled foreign workers to obtain permanent residency. The action, disclosed by Vice President JD Vance on October 8, 2026, cites alleged fraud and aims to encourage hiring of American workers.

Key Companies Affected:

• Microsoft and Adobe
• Major IT services firms: Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini

Program Details:

The PERM (Permanent Labor Certification) process requires employers to demonstrate that no qualified U.S. workers are available for specific positions before filing employment-based green card petitions. Labor Secretary Keith Sonderling stated that no new or pending applications from these companies would be processed.

Additional Investigations:

Nine universities, including Harvard, Yale, and Stanford, will face investigation for allegedly using international students to undercut American wages. Labor Inspector General Anthony D'Esposito confirmed subpoenas have been served, focusing on potential foreign influence, improper financial relationships, and visa abuse in federally funded research.

Market Implications:

This development could significantly impact:

• Tech sector hiring practices and labor costs
• Foreign workforce availability for major IT companies
• Operational models for IT services firms heavily reliant on international talent pipelines
• University research programs and international student recruitment

The policy shift represents a substantial tightening of immigration controls affecting the technology sector's access to global talent, potentially forcing companies to restructure hiring strategies and possibly increasing domestic labor costs. Microsoft had not responded to comment requests at publication time.