Visa Crackdown Slams Tech Giants

U.S. documents including Social Security card and Permanent Resident Card — Photo: Leena Robinson / Shutterstock

The White House suspended Microsoft, Adobe, and several major outsourcing firms from a key green-card program, signaling a sweeping visa-fraud crackdown tied to layoffs and foreign hiring claims.

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Vice President JD Vance announced suspensions from the PERM green-card program for Microsoft, Adobe, and large outsourcing firms.
The task force is probing alleged abuse in H-1B and J-1 visa programs across tech and higher education.
Vance linked the suspensions to claims about layoffs and foreign worker numbers at Microsoft.
Nine universities face investigation over alleged J-1 visa wage and hiring practices.

White House Announces Major PERM Suspensions

On October 8, 2026, Vice President JD Vance said the administration suspended Microsoft and Adobe from the program that lets employers sponsor green cards for foreign workers through permanent labor certification. Officials also named major information technology outsourcing companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini, as facing suspensions while federal investigations proceed. The action came through the White House Task Force to Eliminate Fraud and was presented as an enforcement step, not a policy trial balloon.

Vance described the move as a response to alleged misuse of work-visa pathways. He said Microsoft had laid off thousands of American workers while using temporary visas and green-card sponsorships, and he framed that pattern as abuse of the system. News outlets reported Vance’s statement that Microsoft is barred from the green-card sponsorship track linked to the H-1B worker pool, commonly known as the PERM process. The Department of Labor and the Department of Justice were cited as partners in the effort.

Scope Extends to H-1B and J-1 Programs

Officials said the campaign stretches beyond a single firm or sector. The task force is targeting alleged abuses in the H-1B high-skill program and the J-1 exchange visitor program. Reporting described nine universities under investigation for J-1-related wage and hiring practices, naming elite institutions among them. Coverage indicated the government is reviewing whether some schools used the J-1 track as a lower-cost hiring channel for research roles, rather than for true cultural exchange.

The White House framed the initiative as worker protection. Task force leaders said the goal is to stop fraud and trafficking, protect wages, and enforce long-standing rules. News reports highlighted that enforcement can include suspending access to the permanent labor certification process when investigators identify serious compliance issues. Reporters also noted that large enforcement waves are episodic but not rare, and that legal standards distinguish fraud from other violations even when public debate blends them.

What PERM Suspensions Mean for Employers and Workers

Suspension from the permanent labor certification process blocks new green-card sponsorships tied to the employer’s jobs while the case is active. Companies can face delays in keeping foreign workers long term, and they may need to adjust hiring plans. For U.S. workers, officials say enforcement should reduce unfair competition if employers used visas to undercut wages or replace staff. For foreign workers, the process may slow or halt green-card plans if their sponsor is on the suspension list.

Vance’s remarks included specific layoff and visa figures to justify the action, but those were presented as his claims in press accounts. The public reporting summarized those numbers and the government’s position, while noting the focus on fraud and abuse across sectors. As with most active investigations, companies and universities named in reports may limit comment until inquiries conclude. Agencies said they will pursue cases and use existing tools to punish willful violations.