Microsoft barred from sponsoring foreign workers for US residency

The Trump administration has temporarily barred Microsoft, Adobe and six large IT outsourcing firms - Cognizant, Infosys, Tata, Wipro, HCL and Capgemini - from using the Permanent Labor Certification (Perm) program to sponsor foreign workers for US permanent residency, accusing them of abusing H-1B and related visa programs to displace American employees. Vice‑president JD Vance called H‑1B “rife with fraud,” singled out Microsoft for having “laid off American workers and then replace[d] them with foreign indentured servants,” and announced subpoenas and ongoing investigations by the Labor Department inspector general. The action also triggered diplomatic protests from India over Vance’s wording, and the administration opened a separate fraud probe into J‑1 student visas at nine major universities.

Companies pushed back: Microsoft said most US employees are American, that many filings were to extend or change status for existing staff, and that its H‑1B wages rank among the highest. Officials noted broader context: a previous attempt to impose a $100,000 H‑1B fee was ruled an unauthorized tax, over 400,000 visas were approved last year, and nearly one million Indian nationals remain stuck in an employment‑based green card backlog. Shares of Microsoft fell after the announcement, even as CEO Satya Nadella received a National Medal of Technology at a White House event where administration spokespeople insisted the moves align with prioritizing American workers.