Could cripple US tech for more than a generation': Microsoft President Brad Smith on Trump's green-card curbs

The Trump administration restricted Microsoft’s access to the green-card pathway for skilled foreign workers. Vice President JD Vance announced that Microsoft and seven other companies could no longer seek green cards for those employees. The move affects a route to permanent residency, not merely a hiring programme.

The restriction operates through the PERM programme. Affected companies cannot submit new PERM applications, and the processing of pending applications has stopped. Microsoft President Brad Smith said many applications involved long-serving employees, rather than recent hires, because of a lengthy processing backlog.

Smith warned that the policy could weaken the US technology sector for more than a generation. He also said it might encourage skilled artificial-intelligence and software workers to pursue jobs abroad. Smith rejected Vance’s accusations about H-1B misuse and urged the White House to reconsider its position after reviewing Microsoft’s hiring and pay practices.

The PERM programme is the Permanent Labour Certification programme run by the US Department of Labor. It allows companies to sponsor foreign employees for US green cards. A green card grants permanent residency, so PERM is an important bridge between employment and a longer-term legal status in the country.

The basic mechanism is company sponsorship. An employer submits a PERM application for a foreign employee, and the programme provides the process through which that worker can be sponsored for a green card. The article describes PERM as a pathway for skilled foreign employees, including workers already employed by companies such as Microsoft.

That pathway matters because applications can face long processing backlogs. Smith said Microsoft’s green-card applications largely involved long-serving employees. When applications are delayed or stopped, workers may remain without the permanent residency outcome their employer is seeking, even after years of service.

The suspension is broad enough to affect eight IT companies. The article names Microsoft, TCS, Infosys, Wipro and Cognizant, while identifying the others as part of the same group. Microsoft was therefore not the only company whose green-card pathway was restricted.

The key mechanism has two parts. First, affected companies are barred from submitting new PERM applications. Second, the government stops processing applications that were already pending. This means the suspension blocks both future sponsorship requests and progress on existing cases.

The practical effect is especially significant for employees who have waited through long processing delays. Smith said Microsoft’s applications largely concerned long-serving employees, not new hires. The article reports that the Trump administration suspended the programme on October 8 for the affected companies, creating uncertainty for both employers and skilled foreign workers seeking permanent residency.

A green-card backlog delays the final step toward permanent residency. Employees can continue working for years while their employer’s sponsorship application waits for processing. The delay therefore affects people who have already built careers in the United States, rather than only workers newly entering the country.

Microsoft President Brad Smith said the company’s applications largely concerned long-serving employees. He attributed this pattern to a lengthy backlog in processing applications. In his view, the figures presented to Vice President JD Vance did not accurately show that these cases involved established workers rather than a rush to bring in new employees.

The suspension makes the uncertainty greater. Pending applications are stopped, so delayed cases cannot progress through the PERM pathway. Smith warned that such signals could push talented artificial-intelligence and software engineers toward opportunities in other countries. That could make it harder for US companies to retain experienced workers and plan their technology workforce.

An H-1B visa generally provides temporary permission for a skilled foreign worker to work in the United States. A green card provides permanent residency. These are different immigration pathways, although an employee may seek a green card after working in the country under an H-1B arrangement.

That distinction is central to this dispute. Vice President JD Vance accused Microsoft of abusing the H-1B programme to avoid hiring American workers at higher salaries. Brad Smith rejected that claim as completely off base. Separately, the administration barred Microsoft from seeking green cards for skilled foreign workers through the PERM process.

The restriction therefore affects employees’ longer-term status and employers’ sponsorship efforts. Smith said Microsoft’s applications mainly involved long-serving workers delayed by a backlog. He also said Microsoft uses the same compensation system regardless of immigration status and hired more than 9,000 US-born workers last year. The disagreement covers both visa use and permanent-residency access.

The main risk is a loss of highly skilled people from the US technology sector. Brad Smith warned that restricting green-card pathways could cripple the industry for more than a generation. He said the United States should worry about sending signals that make talented artificial-intelligence and software engineers consider other countries.

The mechanism is a change in worker decisions. If skilled employees believe they cannot secure permanent residency, they may pursue opportunities elsewhere. Companies could then lose experienced workers, while other countries gain the engineers and technical knowledge that US employers hoped to retain. The article links this concern directly to the administration’s restrictions.

The possible consequences extend beyond individual employees. A smaller or less stable talent pool could weaken technology companies’ ability to develop products and compete. Smith’s warning is about the future direction of the industry, while the immediate reality is that new PERM applications are blocked and pending applications are not being processed.

US technology companies use immigration pathways to employ skilled foreign workers and support their workforce. The article focuses on PERM, which lets companies sponsor foreign employees for green cards. It also discusses H-1B visas, which the administration accused Microsoft of misusing. Together, these pathways affect how companies recruit and retain technical talent.

The key mechanism is access to workers and longer-term stability. A company can employ a skilled foreign worker and seek permanent residency through sponsorship. Microsoft said many of its applications involved long-serving employees, showing that these pathways can matter for retaining people already contributing to the business. The company also reported hiring more than 9,000 US-born workers last year.

Smith warned that restricting these routes could send AI and software engineers to other countries. That could reduce the talent available to US companies, weaken their ability to build technology and damage competitiveness. He called for the White House to reassess its position using what he described as more accurate hiring information.