Labor Department Halts Green Card Certification for Microsoft, Adobe, and Major IT Outsourcing Firms
United States
Jacquelyn Martin/Reuters
What Happened
Key Implications
What Happened
Key Implications
Where Sources Agree
- arrows_inputPERM Program Access Suspended: A portion of reporting indicates the Department of Labor has suspended Microsoft, Adobe, and six major IT outsourcing firms from the Permanent Labor Certification (PERM) program, meaning the agency will not accept new or process pending applications for these companies, according to Department of Labor officials.
- arrows_inputGreen Card Program Suspension: Various reports document that the Trump administration has suspended Microsoft, Adobe, and several major IT outsourcing firms from the Permanent Labor Certification program; Labor Secretary Keith Sonderling and Vice President JD Vance cited alleged visa fraud and the displacement of American workers for the move.
- arrows_inputJ-1 Visa Fraud Probe: Some outlets verify that the Trump administration has launched investigations into nine major universities and served subpoenas regarding allegations of J-1 visa abuse, per official sources.
Where Sources Disagree
- arrows_outputMicrosoft Visa Usage Dispute: Vice President JD Vance alleges Microsoft laid off 6,000 American workers and replaced them with 6,300 foreign hires, whereas Microsoft asserts that 80% of its H-1B applications were status extensions for existing employees rather than new hires.
- arrows_outputH-1B Wage Impact: The Trump administration contends that companies use H-1B visas to replace American staff with lower-paid foreign workers, whereas Microsoft maintains it pays H-1B visa holders the same as American employees in comparable roles.
Timeline
October 8, 2026
Immediate impacts and responses: Officials said the suspension freezes the green-card sponsorship pipeline (without revoking visas) and announced related probes of nine universities and subpoenas by the Labor inspector general; Microsoft and Adobe disputed the allegations, with Microsoft saying ~80% of its roughly 6,000 H-1B filings were extensions or status changes and that H-1B wages were competitive. Labor officials framed the move as part of broader enforcement and investigations into long-running alleged abuses dating back to filings since 2009.
October 8, 2026
PERM suspensions announced: On October 8, 2026 Vice President JD Vance and Labor Secretary Keith Sonderling announced the indefinite suspension of Microsoft, Adobe and six large IT outsourcing firms (Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini) from the Department of Labor's Permanent Labor Certification (PERM) program, citing alleged fraud and active federal investigations. Officials said the department would not accept new or process pending PERM applications involving those companies as part of an anti-fraud enforcement effort.
October 7, 2026
DHS proposal on student work fees: One day before the Labor Department announcement, the Department of Homeland Security proposed a rule requiring schools to pay a $70,000 fee for each international student participating in Optional Practical Training (OPT), part of a broader push on visa and student-work policies. The administration framed the rule as a response to alleged fraud and abuse in student work programs.
Perspectives and Debates
What is the primary significance of the PERM suspensions?
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Timeline
October 8, 2026
Immediate impacts and responses: Officials said the suspension freezes the green-card sponsorship pipeline (without revoking visas) and announced related probes of nine universities and subpoenas by the Labor inspector general; Microsoft and Adobe disputed the allegations, with Microsoft saying ~80% of its roughly 6,000 H-1B filings were extensions or status changes and that H-1B wages were competitive. Labor officials framed the move as part of broader enforcement and investigations into long-running alleged abuses dating back to filings since 2009.
October 8, 2026
PERM suspensions announced: On October 8, 2026 Vice President JD Vance and Labor Secretary Keith Sonderling announced the indefinite suspension of Microsoft, Adobe and six large IT outsourcing firms (Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini) from the Department of Labor's Permanent Labor Certification (PERM) program, citing alleged fraud and active federal investigations. Officials said the department would not accept new or process pending PERM applications involving those companies as part of an anti-fraud enforcement effort.
October 7, 2026
DHS proposal on student work fees: One day before the Labor Department announcement, the Department of Homeland Security proposed a rule requiring schools to pay a $70,000 fee for each international student participating in Optional Practical Training (OPT), part of a broader push on visa and student-work policies. The administration framed the rule as a response to alleged fraud and abuse in student work programs.
