The Trump administration has intensified its crackdown on employment-based immigration, suspending Microsoft from a federal programme that helps companies seek permanent residency for foreign workers on H-1B visas. Vice President JD Vance defended the move as part of a broader push to ensure American workers receive priority in the US labour market.
The decision marks a major escalation in the administration’s scrutiny of large technology companies that rely heavily on foreign skilled workers. Vance said Microsoft is a major American company but argued that its hiring practices must better reflect the interests of US workers.
JD Vance’s ‘Americans First’ Message
Speaking at a White House briefing on Thursday, Vance said the administration’s message to Microsoft was straightforward: the company should continue growing, but it should do so by employing more American workers.
Vance accused Microsoft of having significantly relied on foreign labour while also reducing its US workforce. According to figures cited by the vice president, Microsoft laid off around 6,000 American workers last year while obtaining approximately 6,300 H-1B visas and nearly 3,000 green cards.
The vice president argued that the figures demonstrated what the administration considers an imbalance in the use of the immigration system. He accused Microsoft of exploiting the existing framework at the expense of American employees.
However, reports noted that Vance did not publicly provide evidence establishing that the foreign workers directly replaced the laid-off American employees. Microsoft had not immediately responded to requests for comment.
Microsoft Suspended From PERM Green-Card Programme
The action specifically concerns the Department of Labor’s Permanent Labor Certification, or PERM, programme, rather than an outright ban on Microsoft hiring H-1B workers.
PERM is an important step in the employment-based green-card process. Under the system, employers generally must demonstrate that there are no qualified, willing and available US workers for a particular position before sponsoring an eligible foreign employee for permanent residency.
The suspension therefore could make it more difficult for Microsoft to provide a long-term immigration pathway for certain foreign employees.
Labor Secretary Keith Sonderling said the government would not accept new or process pending permanent labour certification applications involving companies targeted in the latest action.
Major IT Companies Also Face Action
Microsoft is not the only major technology company caught in the administration’s latest immigration crackdown.
Officials said Adobe and several large IT outsourcing companies, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, were also being suspended from the PERM programme. The administration cited alleged fraud and concerns over the use of foreign labour.
The move could have significant implications for the technology and outsourcing sectors, which have historically depended on employment-based immigration to recruit specialised talent from around the world.
The H-1B system is particularly important to the technology industry because it enables US employers to hire foreign professionals for specialised occupations. Technology companies are among its largest users, while Indian professionals account for a substantial share of H-1B approvals.
Broader Trump Crackdown on Immigration
The Microsoft decision comes amid a wider effort by the Trump administration to tighten rules surrounding foreign workers and international students.
The administration has also targeted the Optional Practical Training system used by international students after completing or during their US education. The Department of Homeland Security has proposed a significant fee connected with the programme.
Vance additionally announced scrutiny of nine major American universities over alleged misuse of J-1 visa programmes. Officials said investigations would examine whether foreign influence, visa abuse or improper financial arrangements were affecting federally supported research and employment practices.
What the Microsoft Move Means for H-1B Workers
The latest action does not mean Microsoft has been prohibited from employing H-1B workers. Instead, the immediate impact centres on access to the PERM pathway used to sponsor eligible foreign employees for permanent residency.
Also Read | 40% Higher Farm Yields: Ashwini Vaishnaw Unveils World Bank’s AI Development Report In India
For foreign technology professionals hoping to build long-term careers in the United States, the development could nevertheless create additional uncertainty. A company’s ability to sponsor green cards is an important factor for many H-1B workers seeking permanent status.
The administration, meanwhile, maintains that the measures are designed to protect American jobs, prevent alleged abuse and ensure that immigration programmes do not disadvantage US workers.
The confrontation also highlights a growing tension in the American technology sector: companies argue that global talent is essential to innovation and competitiveness, while the Trump administration is increasingly insisting that US employers must prioritise domestic workers.
For Microsoft and other technology giants, the latest restrictions could therefore become a significant test of how the US balances immigration, innovation, corporate hiring and the protection of American jobs.
Click here to join our WhatsApp Channel for real-time news updates and exclusive coverage.
