Vice President JD Vance announced on Thursday, October 8, 2026, that the Trump administration is suspending Microsoft and Adobe from a program that allows companies to sponsor foreign workers for permanent residency. The administration alleged that Microsoft engaged in fraud within the H-1B visa and permanent labor certification (PERM) programs. The PERM program is a certification process that permits employers to hire foreign nationals to work permanently in the United States.
The action follows a period of heightened scrutiny regarding the H-1B program, which provides visas for high-skilled positions that employers state are difficult to fill with U.S. workers. Critics of the program have argued that the system undercuts American labor. The announcement came one day after the administration introduced other restrictions related to international students and their ability to work in the U.S.
During a news conference, Vance alleged that Microsoft laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas and approximately 3,000 green cards. Microsoft disputed these claims, stating that the vast majority of its U.S. employees are Americans and that it pays H-1B employees the same as others doing comparable work. The company noted its wages are among the highest in the tech sector. Hours after the suspension was announced, President Donald Trump presented Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation, praising his leadership and the company’s software development.
In addition to the actions against tech firms, Inspector General of Labor Anthony D’Esposito announced a federal investigation into J-1 visa fraud involving nine universities, including Harvard, Stanford, and MIT. Attorney General Todd Blanche stated the Department of Justice is actively investigating companies for "foreign labor favoritism," which he defined as discriminating against American workers in favor of foreign labor.
The scale of these investigations extends to the academic sector, where nine major universities are under investigation for J-1 visa practices. This affects international students and researchers at institutions like Yale, Brown, and Harvard. The administration stated the investigations address the displacement of American workers and the exposure of U.S. research to foreign adversaries. The day-to-day impact for affected workers will be the inability to file or progress in the PERM certification process.
The long-term impact involves a potential shift in how major technology and educational institutions recruit and maintain international talent. Vance stated the suspension would last until the companies demonstrate they are prioritizing American workers, noting that the administration has the tools to maintain the suspension indefinitely if necessary. There are no immediate court dates or deadlines reported for the lift of these suspensions, but the Department of Justice confirmed that active investigations into broader corporate hiring practices are ongoing.