US Government Blocks Tech Giants from Key Visa Program

The United States government has announced a major change to how it handles foreign worker applications. On Thursday, the White House confirmed that Microsoft and Adobe are now blocked from using the Permanent Labor Certification Program (PERM). This program is a necessary step for skilled international workers on H-1B visas to apply for a green card, which grants them permanent residency in the US.

Vice President JD Vance announced the suspension during a press conference. He strongly criticized the companies, claiming they have abused the visa system to replace American employees with foreign workers. According to Vance, these firms are using the program to hire what he called “foreign indentured servants.” He argued that these companies often pay international workers less than American staff, which he believes hurts the local job market. “You cannot lay off American workers and then replace them with foreign workers,” Vance stated.

In addition to Microsoft and Adobe, US Labor Secretary Keith Sonderling noted that several other large technology and outsourcing firms have been suspended from the program. These include companies such as Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. According to The Guardian, Sonderling explained that the government will no longer process any new or pending applications from these specific companies. He described some of these organizations as “visa mills,” suggesting they were flooding the country with foreign workers rather than hiring locally.

Microsoft has pushed back against these claims. In a public statement, the company noted that the vast majority of its employees in the United States are American citizens. A company spokesperson explained that 80% of the H-1B visa applications filed by Microsoft in the last year were for people who were already working at the company, not for new hires. Furthermore, Microsoft stated that it pays its international employees the same high compensation as any other staff member doing similar work. The company added that it looks forward to providing the government with more information to address these concerns.

Data from the industry shows that tech companies are the largest users of the H-1B visa program. According to The Guardian, Microsoft applied for H-1B visas for nearly 3,700 workers in 2026. While the company is a major user of the system, it is not the largest; Amazon filed more than 9,300 petitions during the same period. The H-1B visa is a temporary permit for skilled workers, and it is currently limited to 85,000 new visas per year, as reported by the BBC.

This government action has created a complex situation. Just hours after the announcement, Microsoft CEO Satya Nadella was at the White House to receive a prestigious medal for technology innovation from President Donald Trump. During the ceremony, President Trump described the award as “well-deserved,” even as his administration continued its public criticism of the company’s hiring policies. This contrast highlights the different views within the government regarding the role of major technology firms in the American economy.

Outside groups have different opinions on the matter. Immigration advocacy organizations, such as the National Immigration Forum, have long argued that the ability to attract global talent is a strength for the United States. They believe that competing for specialized workers in fields like technology, research, and science benefits the entire economy. However, these groups also acknowledge that the current visa system has flaws. Because an H-1B visa is tied to a specific employer, workers often find it difficult to change jobs or negotiate for better pay, which can make them feel stuck in their current positions.

As the government continues its investigation into these firms, the future of the PERM program remains uncertain. For now, the suspension means that thousands of foreign workers currently employed by these tech giants may face significant delays or difficulties in their path to becoming permanent US residents. The administration’s focus on this issue suggests that further changes to immigration and labor policies may be coming soon, as officials continue to prioritize the protection of domestic wages and job opportunities.