U.S. blocks Microsoft, Adobe from green card program over H-1B fraud allegations

Vice President JD Vance announced Thursday that Microsoft, Adobe, and several IT outsourcing firms have been barred from the PERM program, which enables H-1B visa holders to pursue permanent residency. The suspension stems from investigations into fraudulent practices within the visa sponsorship system. Cognizant, Infosys, Tata Consultancy, Wipro, HCL, and Capgemini also face similar restrictions.

Neither the affected companies nor their representatives have issued public statements in response to the action.

The government will halt processing of all new and pending Permanent Labor Certification applications submitted by these organizations. During the announcement, Vance directed particular criticism at Microsoft, declaring that "There has been no company in the United States, unfortunately, that has abused this system more." He continued: "if you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants."

Vance cited specific figures regarding Microsoft's workforce actions, noting the company terminated 6,000 employees while receiving approval for 6,300 H-1B visas and nearly 3,000 green cards. The vice president indicated that Microsoft submitted 3,682 PERM applications, with approximately 1,000 of those covering roles that appeared to correspond with positions vacated by laid-off staff. Labor Secretary Keith Sonderling attributed the suspension of both Microsoft and Adobe's PERM access to "multiple active federal investigations."

The severity and speed of this enforcement action represent an escalation in government scrutiny of the visa program. The backdrop includes intensified regulatory focus on H-1B practices. In July of last year, the Labor Department initiated a comprehensive investigation targeting fraud and human trafficking within H-1B and PERM systems. The inquiry examines falsified applications, wage theft, worker coercion, substandard compensation, improper recruitment tactics, and benching—the practice of keeping H-1B employees on payroll without assigning them work or providing payment.

President Trump signed an executive order in September designed to address H-1B program abuse. That same month, Cognizant also experienced suspension of its green card filing capabilities. Modifications to the H-1B selection process have already been implemented to prioritize applicants with advanced skills and higher compensation levels.

Data from the National Foundation for American Policy shows that Amazon secured the highest number of approved H-1B visas in fiscal year 2025 with 4,644, trailed by Meta with 1,555, Microsoft with 1,394, and Google with 1,050.