Trump administration suspends Microsoft, Adobe, IT outsourcers from PERM green-card program over alleged visa fraud
What happened
On Thursday, Oct 8, Vice President JD Vance and Labor Secretary Keith Sonderling announced the indefinite suspension of Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL Technologies, and Capgemini from the Department of Labor's PERM permanent-labor-certification program, accusing them of fraud and abuse. The government will accept no new PERM applications and will not process pending ones involving these companies — cutting off a key employer-sponsored route to green cards for skilled foreign workers. Vance singled out Microsoft, saying 'no company in the United States... has abused this system more than Microsoft,' and cited Microsoft laying off 6,000 U.S. workers while using 6,300 H-1B visas and nearly 3,000 green cards. Microsoft defended its visa use and said it looks forward to sharing more information with the administration. Separately, officials announced J-1 visa-program abuse probes into nine universities including Harvard, Yale, and Stanford. MSFT shares fell more than 1.3% Thursday.
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Who’s affected
- Microsoft (MSFT): singled out by Vance as the worst abuser ('no company... has abused this system more than Microsoft')
- PERM is a core talent pipeline and Microsoft is its largest filer — recruiting/key-talent risk, fell ~1.3% Thursday. Adobe (ADBE): also suspended indefinitely. IT outsourcers Cognizant (CTSH), Infosys (INFY), Tata, Wipro, HCL, Capgemini: core business model relies on moving skilled workers into the U.S.; mixed price action Thursday (CTSH up 5%+, INFY ADRs turned positive). Education sector: nine universities (Harvard, Yale, Stanford, Brown, MIT, Caltech, UC Davis, Pitt, Arizona State) face J-1 visa program probes. Software/tech broadly: any employer relying on foreign tech talent faces heightened regulatory risk ahead of midterms.