The administration of President Donald Trump announced on Thursday, October 8, the suspension of Microsoft, Adobe, and six other major technology and IT service companies from a federal program that allows the sponsorship of permanent residency for foreign workers in the United States. The decision comes amid investigations into alleged abuses of the labor visa system.
The measure specifically affects the Permanent Labor Certification Program (PERM), administered by the Department of Labor, and does not equate to the general cancellation of H-1B visas or the green cards already granted.
The vice president JD Vance announced the action against Microsoft during an appearance at the White House, while the Secretary of Labor, Keith Sonderling, expanded the list to include other companies, according to Reuters and Fox Business.
Which companies are suspended?
In addition to Microsoft and Adobe, the announcement includes Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, companies with a significant presence in the U.S. market for hiring foreign professionals.
Sonderling ensured that the Department of Labor will not accept new PERM applications or process pending applications related to those companies. The official linked the decision to the protection of American jobs and, in the case of Microsoft and Adobe, to ongoing federal investigations.
The duration of the suspension and the conditions for a possible lifting were not specified in the announcement. It was also not publicly detailed how many individual cases would be affected.
The accusation by JD Vance against Microsoft
Vance placed Microsoft at the center of his criticisms and stated that the company had laid off approximately 6,000 workers while benefiting from about 6,300 H-1B visas and nearly 3,000 permanent residency applications for foreign workers, according to the figures presented during the hearing.
The vice president presented those figures as an example of a system that, in his view, allows certain companies to replace domestic jobs with international hires. He also called on the company to prioritize American workers.
It is important to distinguish official accusations from proven facts. The figures cited by Vance do not alone prove that foreign workers occupied the exact positions of the dismissed employees. No firm judicial conclusion has been communicated that establishes that substitution in the terms reported.
Microsoft had not provided an immediate public response to the announcement in the initial information gathered by Reuters.
What is PERM and how does it relate to a green card?
The PERM program of the Department of Labor is a common stage in numerous applications for permanent residency based on a job offer, particularly in categories that require labor certification.
To obtain it, the company must demonstrate, in accordance with applicable regulations, that there are not enough available, willing, and qualified American workers to fill the position and that hiring the foreign worker will not adversely affect the wages or working conditions of comparable employees.
Once certification has been granted, the employer may proceed, when applicable, with an immigrant petition using Form I-140 before the United States Citizenship and Immigration Services (USCIS). Not all employment-based residency categories require PERM.
Are the H-1B visas and already approved residences being canceled?
No general cancellation of H-1B visas or previously granted green cards has been announced. The known restriction is aimed at the processing of permanent labor certifications from the designated companies.
This means that a person can hold a valid temporary visa and still encounter obstacles when advancing toward permanent residency through the sponsorship of one of these companies.
Regarding employees with pending PERM applications, the statement from the Department of Labor indicates a halt in their processing. For those who have already moved past that stage or are using different immigration pathways, the scope should be assessed based on the specific case: the announcement does not imply that all of their applications have been canceled.
How does the measure affect Cubans in the United States?
For Cubans working in the U.S. tech sector, the outcome mainly depends on which company sponsors their residency and through which immigration pathway they apply. A Cuban professional whose employer is one of the suspended companies and requires a PERM certification may face delays or a halt in that process.
In contrast, the measure does not suspend the Cuban Adjustment Act, a separate avenue for certain nationals or naturalized citizens of Cuba who meet the legal requirements. It would not be accurate to interpret this announcement as a blanket prohibition on obtaining residency for Cubans.
The distinction is especially relevant at a time when CiberCuba has reported on a lawsuit against new immigration restrictions related to the green card. These are different procedures and measures that should not be confused.
Those who have a residency process sponsored by any of the affected companies should confirm with their employer or legal representative whether their case depends on PERM, what stage it is at, and whether the Department of Labor publishes additional instructions. To know about other pathways for work and residency, you can also refer to the .
A broader offensive against the alleged immigration fraud
The decision is part of a broader federal investigation. The inspector general of the Department of Labor announced in July an initiative to investigate potential fraud and abusive practices in the H-1B and PERM programs.
During Thursday's appearance, the authorities also announced investigations into the use of J-1 visas at nine universities, including Harvard, Yale, and Stanford, due to suspicions of practices that could harm the working conditions of Americans. These are investigations, not established culpabilities.
For now, the decision against the eight companies represents a tightening of control over international hiring in the United States, with particularly significant consequences for foreign professionals who rely on a job offer to obtain permanent residency.
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