Trump Administration Cuts Off Access to a Major Immigration Program for Workers at Microsoft and Adobe

What is the PERM program, and why is it an important step for an H-1B worker seeking a green card?

PERM is the Labor Department’s permanent labor certification program. It is a major step for an H-1B worker seeking permanent residency in the United States. The process connects a temporary work arrangement with a permanent job opportunity. That makes it important for skilled foreign workers who want to remain in the country long term.

The employer must prove that no American worker would be suitable for the applicant’s permanent position. This requirement is meant to test whether hiring the foreign worker would undercut available American workers. The employer, rather than the worker alone, handles this certification step.

The suspension of PERM participation for Microsoft and other companies therefore affects a central immigration pathway. The article does not say that every H-1B worker loses status immediately. It does show that blocked employers may be unable to start or continue permanent-residency applications until the administration resolves its investigation.

Which companies were suspended from participating in PERM, and what does the suspension prevent them from doing?

The suspended companies are Microsoft, Adobe, Cognizant, Infosys, and Tata. They were barred from participating in PERM, the Labor Department program used in a major green-card pathway for H-1B workers. The action matters because employers play a central role in starting permanent labor certification cases.

PERM requires a company to prove that no suitable American worker is available for the permanent job. Labor Secretary Keith Sonderling said the agency is investigating whether the companies committed fraud or undercut American workers by hiring foreign employees. Vice President JD Vance specifically accused Microsoft of abusing the system, though the article presents those claims as allegations and investigations.

The suspension means these companies may not be able to begin or advance PERM cases while it lasts. The article does not clarify whether employees can still apply for H-1B visas themselves. It also does not state how long the suspension will continue or what findings will end it.

How many H-1B visas did Microsoft receive in 2026 and 2025, and what share of its U.S. workforce did its new-employee filings represent?

Microsoft had 3,688 H-1B visas approved in fiscal year 2026. In 2025, it had 6,258 approvals. The figures show a substantial year-to-year difference, although the article does not explain why the totals changed or whether the comparison uses identical timing.

Microsoft said 80 percent of its 2025 visas extended or changed the status of existing employees. The company said the remaining filings involved new employees who were already legally in the United States. Those new-employee filings equaled only 1 percent of Microsoft’s U.S. workforce.

The numbers are part of a larger debate over technology companies’ use of H-1B visas. Amazon, Tata, and Infosys were the three largest employers by approved visas so far in fiscal 2026, while Microsoft ranked fifth. Microsoft said it hires American workers and attracts talent globally, while officials argue the system can disadvantage U.S. workers.

What could happen to foreign workers at these companies if their employers cannot begin the PERM process for them?

If an employer cannot participate in PERM, a foreign worker’s employer-sponsored path toward permanent residency could be delayed or stopped. PERM is a key step in the process, so losing access to it can interrupt plans to seek a green card through the worker’s permanent job.

For example, an H-1B employee at Microsoft might remain employed under the existing temporary arrangement while the company cannot file the required labor certification. The article does not say that workers immediately lose their jobs or H-1B status. It specifically says officials had not clarified whether the suspension affects employees’ ability to apply for H-1B visas themselves.

The immediate impact is therefore clearest for permanent-residency applications, not necessarily temporary work authorization. Future consequences depend on the investigations and any agency decision about restoring participation. The article provides no timeline and does not specify what happens to PERM cases already underway.

Why does PERM require an employer to show that no suitable American worker is available for the job?

The requirement is designed to make employers consider the U.S. labor market before sponsoring a foreign worker for permanent residency. It asks companies to show that an American worker who could fill the permanent job is not available. That is why PERM sits at the center of the dispute over whether the system protects or disadvantages U.S. workers.

The mechanism is employer evidence about the specific permanent job opportunity. A company must establish that there are no American workers suitable for that position. Officials investigating the suspended firms say fraud or improper hiring could undercut American workers by making that certification unreliable.

The policy has become especially contentious in technology. Jobs Now, an advocacy group of U.S. citizens working in big tech, publicizes PERM job postings and says it helped Americans apply to nearly 500,000 jobs across 7,000 employers. The group argues every job should be offered to an American first, while companies say they need to attract talent worldwide.

How have accusations and settlements involving companies such as Axiom, Apple, and the suspended firms shaped the debate over abuse of the PERM system?

The previous cases gave critics examples to cite when arguing that PERM can be misused. Earlier this year, Axiom and a company it acquired agreed to settle accusations from the Trump administration about violating program rules. Apple reached a similar deal in 2023. These cases did not end the broader argument over employer sponsorship.

The current action widens that debate. Microsoft, Adobe, Cognizant, Infosys, and Tata were suspended while the Labor Department investigates possible fraud. Secretary Keith Sonderling said the agency is examining whether companies undercut American workers by hiring foreign employees. The article does not say the suspended firms have been found responsible.

Tech-worker advocates use the accusations to press for changes to employment immigration. Jobs Now and its members have filed complaints against technology companies and publicized PERM postings. Companies, meanwhile, emphasize their hiring of Americans and global recruiting. The settlements and new investigations keep the system’s enforcement and fairness under public scrutiny.

How do temporary work visas such as H-1B fit into the broader U.S. immigration system, and why do technology companies rely on them to recruit skilled workers?

H-1B visas are temporary work visas, while PERM is part of a pathway toward permanent residency. The article presents them as connected but separate stages: an H-1B worker may work in the United States, then an employer may pursue labor certification for a permanent job. The article does not describe the full immigration system beyond these pathways.

Technology companies use H-1B visas heavily. In fiscal 2026, Amazon, Tata, and Infosys had the most approved visas, and Microsoft ranked fifth with 3,688 approvals. Microsoft said 80 percent of its 2025 approvals extended or changed existing employees’ status, while new-employee filings represented 1 percent of its U.S. workforce.

Companies say they hire American workers while attracting the best talent worldwide. The administration argues the system can take jobs from Americans and is investigating possible abuse. The article says it remains unclear whether the new suspension affects employees’ ability to seek H-1B visas.

Key Facts:

📌 PERM is the Labor Department’s permanent labor certification program.

📌 PERM is a key step toward permanent residency for H-1B holders.

📌 Employers must show no suitable American worker is available.

📌 Microsoft, Adobe, Cognizant, Infosys, and Tata were suspended.

📌 The companies were suspended from the Labor Department’s PERM program.

📌 Officials said the agency is investigating possible fraud.

📌 Microsoft had 3,688 H-1B approvals in fiscal 2026.