WASHINGTON (Realist English). On October 8, the Trump administration announced the suspension of the PERM labor certification program for Microsoft, Adobe, and a number of large IT outsourcing companies. Simultaneously, an investigation was launched into nine leading universities regarding J-1 visas. This is the broadest attack on technology immigration programs to date.
Key measures: who is suspended, who is under investigation
Companies with PERM suspended (8): Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Capgemini.
Universities under investigation (9): Harvard, Yale, Stanford, Brown University, Massachusetts Institute of Technology (MIT), California Institute of Technology (CalTech), University of California, Davis, Arizona State University, University of Pittsburgh.
What the PERM suspension means
PERM (Permanent Labor Certification) is a mandatory preliminary procedure for obtaining a green card under most employment-based immigration categories. The employer must prove to the Department of Labor: there are no qualified American workers willing or able to fill the position.
The employer must also prove that hiring a foreigner will not harm the wages or job opportunities of American workers.
After the suspension, these companies cannot file new PERM applications or process those already submitted. For foreign employees who already hold H-1B visas and are waiting for employer sponsorship for a green card, this means the channel to permanent residence is severed. At least at the current stage.
Vance’s accusations and data
Vice President JD Vance at a press conference directed his attack directly at Microsoft. He stated: “No American company abuses this system more than Microsoft.”
Vance cited data: Microsoft cut 6,000 American employees over the past year. At the same time, the company obtained 6,300 H-1B visas and nearly 3,000 green cards. By his calculation: “For every laid-off American worker, Microsoft got one and a half foreign ‘contract workers.'”
Department of Labor data shows: Microsoft is the largest filer of PERM applications. Since 2009, the eight suspended companies have collectively requested nearly 3 million foreign workers. They obtained more than 230,000 H-1B approvals and more than 100,000 permanent labor certifications.
Microsoft’s response
Microsoft in a statement disputed some of the accusations. Of the approximately 6,000 H-1B applications filed in the past fiscal year, 80% were for extensions or changes of status for existing employees. This is not hiring new workers. The remaining applications concerned people already legally present in the US. They then joined Microsoft — “they are not new arrivals.”
Microsoft emphasized: its salaries are among the highest in the technology industry. The company stated: H-1B employees receive the same salary as other workers in comparable positions.
University investigation: J-1 and “foreign influence”
The investigation into nine universities focuses on J-1 exchange visitor visas. Vance claims: these universities hire J-1 holders in federally funded research in approximately 61% of cases. The national average is 38%. According to him, this undercuts the wages of American graduate students and researchers.
Department of Labor Inspector General Anthony D’Esposito stated: the investigation will examine whether foreign influence, improper financial ties, or visa abuses undermine the integrity of federally funded research. According to him, subpoenas have already been issued.
Stanford stated it complies with all applicable visa laws and will cooperate. MIT reported it received and is reviewing the subpoena. Yale stated it will review the documents upon receipt.
Political background and broader offensive
This action is a continuation of the Trump administration’s tightening of immigration policy. In September of last year, the Department of Labor launched an enforcement operation called “Project Firewall.” Simultaneously, a one-time $100,000 fee was introduced for new H-1B applications.
American Council on Education Vice President Sarah Spreitzer warned of economic consequences. International students historically spend $40 billion a year in the US.
Notably: several hours before the announcement of the PERM suspension, Trump awarded the National Medal of Technology to a group of technology billionaires. Among them was Microsoft CEO Satya Nadella. Nadella himself once held an H-1B visa. Elon Musk, who also received the award, has similar experience.
India’s reaction
Indian industry organization Nasscom responded with a statement. Indian technology companies in the US have already significantly reduced dependence on H-1B visas. “A relatively small number of employees seek green cards through the PERM procedure.” Tata Consultancy Services declined to comment. The other named companies did not respond immediately.
