Trump Administration Suspends Microsoft, IT Firms From Green Card Program Over Fraud Claims

The Trump administration announced Thursday it is suspending Microsoft and seven other major technology and outsourcing firms from the PERM green card program, a critical pathway for foreign skilled workers to gain permanent U.S. residency. Vice President JD Vance and Labor Secretary Keith Sonderling alleged the companies committed fraud by using the program to replace American workers with "foreign indentured servants."

Vance specifically accused Microsoft of laying off 6,000 U.S. workers in 2025 while securing 6,300 H-1B visas and nearly 3,000 green cards. The suspension blocks new and pending PERM applications for the named firms, potentially stranding thousands of foreign employees on temporary visas.

“There has been no company in the United States, unfortunately, that has abused the system more than Microsoft.”

The move came hours before President Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation. When questioned on the contradiction, Vance said the administration would continue to support Microsoft but insisted the company must hire American workers.

Microsoft responded that roughly 80 percent of its recent H-1B filings were for extensions or status changes for existing employees, not new hires. The Labor Department also opened probes into nine universities over their use of J-1 exchange visitor visas, broadening the crackdown to academic institutions.