Trump Administration Suspends Microsoft from H-1B Green Card Program Amid Fraud Allegations

The Trump administration has taken a significant step by suspending Microsoft from the H-1B green card program. This action, announced on October 8, 2026, bars the technology giant from initiating new PERM labor-certification cases for H-1B workers seeking permanent residency in the United States. The move stems from allegations of fraud and a perceived pattern of replacing American workers with foreign hires.

Understanding the PERM Process

PERM, or Program Electronic Review Management, is a critical step in the employment-based green card application process. It requires employers to demonstrate that there are no qualified U.S. workers available for a specific job opening before they can sponsor a foreign national for a green card. This process is designed to protect the U.S. labor market by ensuring that foreign workers are only hired when there is a demonstrated need.

Allegations Against Microsoft

Vice President JD Vance stated at a White House news conference that Microsoft had laid off 6,000 American workers over the past year. During the same period, the company reportedly received 6,300 H-1B visas and nearly 3,000 green cards for foreign workers. Vance characterized this situation as a “scandalous system,” suggesting that for every American worker let go, Microsoft hired one and a half foreign workers on what he termed “indentured servant” terms. These figures were presented as the basis for the administration’s decision to suspend Microsoft from the PERM program.

Scope of the Suspension

It is important to clarify what the suspension entails. The administration’s action specifically targets Microsoft’s ability to begin new PERM labor-certification cases. This means the company cannot start the process of sponsoring H-1B workers for green cards through this route. However, the suspension does not affect existing H-1B visas that employees currently hold, nor does it automatically cancel PERM cases that have already been filed. The measure addresses new sponsorship filings, not existing immigration statuses or applications already in the pipeline.

Broader Administrative Actions

The suspension of Microsoft was part of a larger set of actions taken by the administration against employers utilizing foreign worker programs. Labor Department officials indicated that other companies, including Adobe, were also subject to similar scrutiny. In addition to the H-1B related measures, Vice President Vance also raised concerns about alleged fraud within the J-1 visa program, specifically targeting nine universities for disproportionately relying on the exchange-visitor program. These actions suggest a wider effort to review and potentially restrict the use of various foreign worker programs by both companies and educational institutions.

Related OPT Fee Proposal

Coinciding with these announcements, the Department of Homeland Security (DHS) proposed new fees for Optional Practical Training (OPT) authorizations on October 7, 2026. This proposal, which is not yet finalized, would charge schools $70,000 for each initial OPT authorization and $30,000 for each additional authorization, including STEM OPT extensions. These fees would be paid by the educational institutions, not the students. The public comment period for this proposed rule was set to continue through November 9, 2026, indicating ongoing regulatory activity around foreign worker and student programs.

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