Vance Suspends Microsoft and Adobe From Green Card Sponsorship Program

Vice President JD Vance announced Thursday that the Trump administration is suspending Microsoft and Adobe from the Permanent Labor Certification (PERM) program, the step employers use to sponsor foreign workers for permanent residency. Vance accused Microsoft of abusing the visa system at the expense of American workers, a charge the company disputes.

Labor Secretary Keith Sonderling said the department would also suspend several large IT outsourcing firms, citing active federal investigations. For the affected companies, the practical effect is that they cannot move foreign employees toward green cards through this route for now.

The central numbers behind the announcement

• 6,000: Vance said Microsoft laid off this many American workers last year. He said that over the same period the company benefited from 6,300 H-1B visas and almost 3,000 green cards, and he described this as 1½ foreign workers replacing each laid-off worker.
• 80%: Microsoft said that share of roughly 6,000 H-1B applications in the last fiscal year were to extend or change the status of existing employees, not to hire new people.
• 1%: Microsoft said the remaining filings, for new employees already legally in the U.S., equal only 1% of its U.S. workforce.
• $20,000: Vance said H-1B workers on average earn this much less than U.S. workers in the same positions, according to The Guardian.
• 230,000 and 100,000: Sonderling said that since 2009 the targeted companies have received over 230,000 H-1B approvals and over 100,000 permanent labor certifications. The Guardian reported that he attributed those figures to Microsoft and Adobe, while Fox Business reported them as covering the full group of suspended firms. Reports differ on this point.
• Nine: The number of universities under investigation over alleged J-1 visa fraud.

Who is named and what they say

Besides Microsoft and Adobe, Fox Business reported that Sonderling named Cognizant, Infosys, Tata, Wipro, HCL and Capgemini among the suspended firms. He said the department will not accept new applications or process pending ones involving these companies.

Microsoft said most of its U.S. employees are Americans and that it files H-1B petitions only for people who meet the visa's standards. It said it pays H-1B employees the same as others doing comparable work and that its wages are among the highest of all H-1B filings. The company said it looks forward to giving the administration more information. Adobe had not responded to requests for comment from Fox Business or ABC News.

Universities and possible criminal cases

Labor Department Inspector General Anthony D'Esposito announced an investigation into alleged J-1 visa fraud at nine universities: Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT. He said subpoenas have been served.

Attorney General Todd Blanche said the Justice Department is investigating companies accused of favoring foreign workers over Americans. Fox Business reported that he warned of possible criminal cases against companies or individuals found to have broken the law. Vance said the aim is to change corporate behavior rather than to punish.

Why it matters for workers and employers

For foreign employees at the suspended companies, the freeze could affect the path from a temporary work visa to permanent residency. The Guardian noted that H-1B workers are tied to the company that sponsored them, which makes changing jobs difficult. Asked how long the suspension would last, Vance said it would continue as long as needed and that the administration has tools to make it indefinite.

The move also lands in a broader dispute. Vance and administration officials say the programs undercut American wages. Immigration advocacy groups such as the National Immigration Forum argue that attracting global talent benefits the U.S. economy. The Guardian reported that these groups have long sought changes to the H-1B program, though for different reasons.

What happens next

Vance urged Congress to reform the H-1B program and invited both parties to act, saying the administration will do what it can in the meantime. ABC News reported that the announcement came hours before President Donald Trump awarded Microsoft CEO Satya Nadella the Medal of Technology and Innovation. Vance acknowledged the contrast, saying the administration will keep a good relationship with Microsoft but will deny it permanent residency applications until it shows it is putting American workers first.

Around Prague, based on reporting by Fox Business, The Guardian, ABC News