WASHINGTON FREEZES GREEN-CARD PIPELINE FOR MICROSOFT AND MAJOR IT GIANTS

October 8, 2026

The Trump administration has suspended Microsoft and several major technology companies from the US Permanent Labour Certification programme, a key route through which skilled foreign workers can obtain permanent residency, citing alleged fraud and concerns over the use of foreign labour.

The companies affected include Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. US Labour Secretary Keith Sonderling said the government would not accept new applications or process pending permanent labour certification applications involving the suspended companies.

The PERM programme requires employers to obtain certification from the US Department of Labor that no qualified, willing and available American worker can fill a particular position before an employment-based green-card petition can generally proceed.

Vice-President JD Vance said the administration’s action was intended to push major American companies towards hiring more US workers. He specifically criticised Microsoft over its employment practices and alleged replacement of American workers with foreign workers.

The administration has also widened its scrutiny beyond technology companies. Officials said nine universities, including Harvard, Yale and Stanford, would be investigated over allegations that international students were being brought in to undercut American wages.

Labor Inspector General Anthony D’Esposito said subpoenas had already been issued as authorities examine whether foreign influence, improper financial relationships or visa abuse may have compromised federally funded research.

The latest measures represent a further escalation of the Trump administration’s campaign to tighten the US employment-based immigration system and prioritise American workers, with major technology companies and their foreign-worker programmes now facing increased federal scrutiny.