US suspends Microsoft from green card program amid fraud allegations

Yesterday 17:14

By: Azzat Manal

US suspends Microsoft from green card program amid fraud allegations

The Trump administration has suspended Microsoft from a federal program used by employers to seek permanent residency for skilled foreign workers, accusing the technology company of abusing the system.

Vice President JD Vance announced the decision on Thursday, saying the administration had concluded that Microsoft’s use of foreign workers warranted federal action. The move targets the company’s participation in the permanent labor certification process, commonly known as PERM, which allows employers to sponsor eligible foreign workers for green cards.

The administration’s action comes amid a broader effort to tighten enforcement of U.S. immigration and employment-visa programs. Officials have increasingly argued that some companies use foreign-worker programs in ways that disadvantage American employees, particularly when firms conduct layoffs while continuing to hire workers on H-1B visas.

Microsoft did not immediately respond to requests for comment. The government’s allegations have not, by themselves, established that the company committed fraud, and the details of the investigations underlying the suspension have not all been publicly disclosed.

The H-1B system allows U.S. employers to hire foreign professionals for specialized positions when they meet federal requirements. The program has become particularly important to the technology sector, where companies have historically relied on international engineers, software developers and other highly skilled workers.

The Labor Department said the action against Microsoft is part of a wider suspension involving several major information-technology companies. Secretary of Labor Keith Sonderling said Cognizant, Infosys, Tata, Wipro, HCL and Capgemini were also being suspended from the permanent labor certification program, while Adobe was cited in connection with active federal investigations.

The administration is also increasing scrutiny of international students who seek employment in the United States. The Department of Homeland Security has proposed a $70,000 fee for participation in the Optional Practical Training program, which allows eligible foreign students to gain work experience related to their studies. A further $30,000 fee has been proposed for certain additional training.

OPT is widely used by international graduates, particularly those in science, technology, engineering and mathematics, and can serve as an important route toward employment under the H-1B system. The proposed fees represent a major increase from the current cost and are expected to face scrutiny during the public-comment process.

The administration has also expanded investigations into the use of J-1 exchange visas by universities. Federal officials said nine universities are being investigated over allegations involving international students, with subpoenas reportedly already issued. Harvard, Yale and Stanford are among the institutions identified in reports about the investigation.

The crackdown reflects the administration’s broader immigration strategy, which places greater emphasis on protecting American workers and tightening oversight of programs that allow foreign nationals to study or work in the United States. Officials argue that stronger enforcement is necessary to prevent employers from using immigration programs to reduce labor costs.

For technology companies, however, the policy shift could have significant implications. Major U.S. firms have long depended on international talent to fill specialized positions, and restrictions on employment-based immigration could affect recruitment strategies and the movement of skilled workers through the U.S. labor market.

The latest measures also add uncertainty for foreign professionals already working in the United States and for international students hoping to build careers there. As investigations continue, companies, universities and workers are likely to face closer scrutiny over how employment and visa programs are being used.

The administration’s actions are expected to keep immigration and foreign-worker policy at the center of the national debate, particularly as Washington seeks to balance its stated goal of protecting American jobs with the technology sector’s demand for highly skilled international talent.