White House Blocks Microsoft From Permanent Worker Visa Program

The White House has halted the processing of new and pending permanent labor certification applications for Microsoft and seven other companies, escalating the Trump administration's scrutiny of skilled foreign workers. Vice President JD Vance announced the accusations on Thursday, October 8, 2026, alleging that the technology firms had abused US immigration programs to replace American employees with foreign workers.

Labor Secretary Keith Sonderling confirmed that the Department of Labor would stop processing applications under the Permanent Labor Certification Program (PERM) for Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. The restriction affects a pathway that allows eligible foreign workers to pursue permanent US residency, often through a Green Card.

Vance singled out Microsoft, alleging that the company had laid off approximately 6,000 employees while submitting 6,800 H-1B visa applications during the same period. He presented the figures as evidence that the company was using international recruitment to displace American workers and suppress wages.

"No company in the US has abused this system more than Microsoft," Vance said.

He also criticized the company's reliance on workers whose immigration status is tied to their sponsoring employer. Under the rules described by Vance, workers who lose their sponsoring jobs generally have a 60-day grace period to find another employer or otherwise resolve their immigration status. The US government proposed eliminating that period last month.

Vance said the administration expected Microsoft to prioritize domestic employment.

"Our message to Microsoft is quite simple: You're a great American company, you've got to hire great American workers. You cannot lay off American workers and then replace them with foreign indentured servants," Vance said.

Sonderling extended the administration's criticism to employers and educational institutions that recruit international professionals, arguing that their use of the visa system had become excessive.

Microsoft disputed the suggestion that its visa filings primarily represented new hires or that foreign employees received preferential treatment. A company spokeswoman said 80% of its H-1B filings during the previous fiscal year concerned existing employees rather than new recruits.

The spokeswoman also said that international workers hired through the program received compensation equivalent to that of US workers in comparable positions. She emphasized the company's domestic workforce and said Microsoft was prepared to provide further information to the administration.

"the vast majority of Microsoft employees in the United States are Americans," a Microsoft spokeswoman told the BBC.

Microsoft employs more than 200,000 people worldwide. According to Ellis, a company that assists technology businesses with international recruitment, the median salary for an H-1B worker at Microsoft is $155,000.

The spokeswoman said most of the company's H-1B applications involved workers already employed by Microsoft, challenging the administration's characterization of the filings as evidence of widespread replacement hiring.

"We look forward to providing the Administration with additional information," the Microsoft spokeswoman said.

The dispute unfolded as Microsoft's chief executive, Satya Nadella, visited the White House on Thursday to receive a technology innovation medal from President Donald Trump. Trump praised Nadella during the ceremony, describing the award as well deserved.

Other technology leaders receiving medals included Elon Musk, Jensen Huang, Lisa Su, Sergey Brin and Michael Dell. Nadella and several other recipients had also attended recent White House events focused on artificial intelligence and a state dinner for Chinese President Xi Jinping.

The H-1B program is designed to enable US employers to recruit skilled professionals for specialized positions they cannot readily fill domestically. The annual allocation is capped at 85,000 visas, which can precede an application through the PERM process.

International recruitment through H-1B visas is common across the technology industry, including at Amazon, Google, Meta, Apple and Nvidia. Those companies were not included in Vance's remarks about the restrictions announced Thursday.

The Department of Labor certified more than 130,000 PERM applications across ten business categories during the previous fiscal year, underscoring the scale of the permanent labor certification system affected by the administration's decision.