WASHINGTON, D.C. October 11, 2026
The Trump administration has suspended eight major technology and IT services companies from participating in a key employment-based green card sponsorship program, following allegations of foreign worker visa abuse and concerns over American job losses.
Vice President JD Vance singled out Microsoft, accusing the technology giant of laying off thousands of American employees while continuing to benefit from the H-1B visa program.
MICROSOFT LAYOFFS VS. H-1B VISA APPROVALS
According to Vance, Microsoft laid off approximately 6,000 American workers in 2025 while receiving around 6,300 H-1B visa approvals and nearly 3,000 green cards.
However, federal immigration data provides additional context.
USCIS records show that Microsoft received 6,258 H-1B approvals in fiscal year 2025, but many involved existing workers rather than new hires.
Microsoft disputed the administration’s characterization, explaining that approximately 80% of its H-1B applications were for extensions or changes of status involving existing employees. The remaining applications involved workers already legally residing in the United States.
The company also maintained that its H-1B employees receive compensation comparable to other workers performing similar jobs.
EIGHT COMPANIES AFFECTED BY THE SUSPENSION
The companies identified in the federal action are:
Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL and Capgemini.
The suspension affects their participation in the Department of Labor’s Permanent Labor Certification (PERM) program, a major pathway for employers sponsoring foreign workers for permanent residency.
IMPORTANT: H-1B VISAS ARE NOT AUTOMATICALLY CANCELED
The government action specifically targets the PERM labor certification process, not the entire H-1B visa program.
This distinction is significant because H-1B visas allow eligible foreign professionals to work temporarily in the United States, while PERM certification is commonly used in employment-based green card applications.
The restrictions could complicate permanent residency sponsorship for affected foreign employees, particularly those pursuing employer-sponsored EB-2 and EB-3 green cards.
AMAZON AND META WERE NOT INCLUDED
Interestingly, USCIS data showed that Amazon received 19,178 H-1B approvals in fiscal year 2025, followed by Meta with 6,294 and Microsoft with 6,258.
Despite being among the largest H-1B sponsors, Amazon and Meta were not included in the announced suspensions.
NINE U.S. UNIVERSITIES ALSO FACE INVESTIGATION
The Department of Labor also announced an investigation into alleged J-1 exchange visitor visa abuses involving nine major American universities.
The investigations are separate from the PERM suspensions and concern potential misuse of exchange visitor programs.
WHAT DOES THIS MEAN FOR FOREIGN WORKERS?
The administration says its actions are intended to protect American employment opportunities and address suspected misuse of immigration programs.
Critics argue that restricting legal employment-based immigration could create uncertainty for skilled foreign professionals and U.S. businesses that depend on international talent.
For foreign workers already employed in the United States, the impact will depend on their employer, immigration status, and stage of the green card application process.
BOTTOM LINE: The controversy highlights an ongoing debate over protecting American jobs while maintaining access to international talent. Although the eight companies face restrictions on PERM sponsorship, the announcement does not amount to a nationwide cancellation of H-1B visas or employment-based green cards.
