Microsoft Suspended from Green Card Program as Vance Claims 6,000 Americans Replaced by Foreign Hires

The Trump administration suspended Microsoft and seven other technology companies from the Permanent Labor Certification Program (PERM) on Thursday, blocking them from sponsoring foreign workers for green cards. Vice President JD Vance singled out Microsoft during a White House press conference, accusing the tech giant of replacing 6,000 American workers laid off in 2025 with people on H-1B work visas.

The suspension of the Labor Department’s PERM program, which grants permanent residency to immigrants, does not affect H-1B visas, which are temporary work permits. However, H-1B approval data reveals how heavily these companies rely on foreign workers, raising questions about workforce practices across the technology sector.

Vance claimed that Microsoft laid off 6,000 American workers last year but still applied for 6,300 H-1B visas and nearly 3,000 green cards. “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 stated during the announcement.

Eight Companies Face Suspension Despite Amazon and Meta Leading Visa Approvals

All eight suspended companies rank among the nation’s top 50 H-1B sponsors, with most operating as IT services and consulting firms. Besides Microsoft, the government suspended Adobe and the IT outsourcing firms Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini from PERM. Adobe is the smallest on the list at number 45.

Data from the U.S. Citizenship and Immigration Services’ H-1B Employer Data Hub shows that Amazon, with 19,178 H-1B approvals in fiscal 2025, and Meta, with 6,294, were the top two sponsors, and neither was suspended. Microsoft came in as a close third with 6,258 approvals, according to the USCIS data hub.

Microsoft out-sponsored Amazon for years until Amazon surpassed Microsoft in 2017 and now receives approximately three times as many approvals. The decision to suspend Microsoft while leaving Amazon and Meta untouched has raised questions about the selection criteria for enforcement actions.

Visa Data Reveals Complex Picture of Foreign Worker Practices

The numbers present a nuanced picture of how tech companies utilize foreign worker programs. While Microsoft did receive more than 6,000 H-1B approvals last year as Vance stated, two in three went to people already working there. By contrast, Amazon, which brought in nearly four times as many H-1B workers new to the company, was not included on the suspension list.

According to Vance, companies like Microsoft exploit loopholes in the system by posting insufficient job advertisements in places like small-town newspapers, then claiming no one is applying. They then use H-1B visas to bring in favored foreign workers for less compensation and eventually help them obtain permanent resident green cards, the Associated Press reported.

“Microsoft, you’re a great American company, but you’ve got to hire great American workers,” Vance said. “You cannot lay off American workers and then replace them with foreign indentured servants.”

The crackdown extended beyond the technology sector. At the same news conference Thursday, the Labor Department’s inspector general, Anthony D’Esposito, announced an investigation into alleged J-1 visa fraud involving nine major American universities. Trump supporters have long argued that these programs undercut American workers by incentivizing employers to hire from abroad.

Long-Standing Debate Over H-1B Program Intensifies

The Trump administration and its supporters have consistently argued that the H-1B visa program undercuts American workers and prevents them from securing jobs in their own country. Last year, the administration attempted to raise the H-1B fee to $100,000, but a federal judge struck down the proposal.

Supporters of the program maintain that it allows the United States to attract top talent and fill critical gaps in specialized fields where qualified American workers may be scarce. The technology industry has particularly defended the program as essential for maintaining competitive advantage in global markets and driving innovation.

Government officials stated that pending applications from the suspended companies will also be rejected, creating uncertainty for thousands of foreign workers already in the pipeline for permanent residency. The suspension represents a significant escalation in the administration’s efforts to reshape immigration policy around employment-based visas.

Despite his criticism, Vance acknowledged Microsoft’s contributions to American business, adding that “Microsoft is a great American company, and we have a great relationship with them.” The statement suggests the administration views the suspension as a corrective measure rather than a wholesale condemnation of the companies involved.

The suspension leaves affected companies unable to submit green card applications for international employees through PERM, though they can still utilize H-1B visas for temporary workers. This distinction creates a two-tiered system where companies can bring in foreign talent on a temporary basis but cannot help them establish permanent roots in the United States through the traditional green card pathway.