Labor Department Suspends 8 Tech Giants from Green Card Program
On October 8, the Trump administration barred Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini from filing new PERM applications. VP Vance alleges worker replacement.
The Announcement: Eight Companies Barred from PERM
On 8 October 2026, the Trump administration suspended eight major IT firms, including Microsoft, from the US Permanent Labor Certification (PERM) green card programme. Labor Secretary Keith Sonderling suspended Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from the Permanent Labor Certification program, with Labor Secretary Keith Sonderling announcing the action at a White House press conference with Vice President JD Vance.
This marks the most significant employer-level enforcement action against H-1B hiring practices in 2026. The Department of Labor will stop accepting new permanent labor certification applications involving the companies and stop processing pending applications. The Labor Department will not accept new PERM applications from these companies, and it has stopped work on the ones already filed.
What PERM Suspension Actually Means for Workers
PERM is a separate process and is generally required before an employer can file petitions for most employment-based green cards. Under the programme, employers must establish that there are no qualified, willing and available US workers for a particular job. The suspension freezes this critical step in the green card pipeline but does not immediately revoke existing visas.
H-1B status is not suspended, and no end date has been set. H-1B visas are not suspended, so workers at these companies can keep working on their current H-1B while the suspension is in place. However, these companies can't currently start new PERM cases, and cases already filed are paused, which can slow down green cards and the H-1B extensions that rely on them.
Vance's Allegations: The Worker Replacement Narrative
Vice President JD Vance accused Microsoft of replacing laid-off American workers with foreign hires, claiming it replaced the 6,000 workers it laid off in 2025 with people on H-1B work visas. Data shows two-thirds of Microsoft's H-1B approvals went to people already working at the company.
Vance said Thursday that the companies had "abused" H-1B visa and green card processes in order to "replace American workers with what is effectively foreign indentured servants." "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants," Vance said in a White House news conference announcing the decision.
Beyond Microsoft, the eight companies had collectively sought nearly three million foreign workers since 2009. According to figures he presented, they had received more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.
Microsoft Pushes Back
In a short blog post, Microsoft said 80% of the 6,300 H-1B applications it filed last year were to extend or change the status of employees already at the company. "We pay our employees some of the highest compensation in the tech sector, and our wages are among the highest of all H-1B filings," Microsoft said.
Immigration experts have questioned the administration's logic. "If the Trump administration were truly concerned that H-1B workers are 'indentured servants,' then the last thing they would do is block companies from helping their own H-1B workers get green cards," one former USCIS official said. "Once you have a green card, you're no longer dependent on your employer for your immigration status — you're a permanent resident who can change jobs and negotiate higher wages without fear."
Why These Eight Companies?
All eight suspended companies rank among the top 50 H-1B sponsors, and most are IT services and consulting firms. Amazon, with 19,178 approvals in fiscal 2025, and Meta, with 6,294, were the top two sponsors, and neither was suspended. Microsoft was third with 6,258. Labor Secretary Keith Sonderling said Microsoft and Adobe were suspended because of "multiple active federal investigations", but no investigation has produced a finding of wrongdoing against any of the eight companies.
What Happens Next
The administration did not release company-specific findings or details of the alleged violations during the press conference. No end date has been set, and the Labor Department can keep cases on hold until the investigation and any court case are finished.
For tech professionals at these companies, especially those with pending PERM applications, the path to green card sponsorship is now blocked—at least temporarily. Workers on H-1B status can continue employment, but the suspension creates uncertainty for those planning long-term immigration strategies. A formal legal challenge is likely, but the timing and outcome remain uncertain.