U.S. suspends Microsoft from employment-based green card program amid fraud allegations

The Trump administration on Thursday suspended Microsoft from a federal program that helps employers sponsor foreign workers for permanent residency, alleging fraud in the process and widening an already aggressive crackdown on business immigration. The move could affect the company’s ability to pursue green card sponsorship for some foreign employees, but it does not suspend the separate H-1B visa program itself.

The action is likely to be closely watched across the tech industry, where companies rely heavily on skilled international workers for engineering, software, and other specialized roles. Officials said Microsoft was among several large employers named in the enforcement push, alongside other technology companies that have also faced scrutiny over their use of the labor certification system.

The program at issue is the Permanent Labor Certification Program, known as PERM. Under that process, employers must show the Department of Labor that they cannot find qualified U.S. workers for a position before seeking a green card for a foreign worker. Administration officials said they believe some companies have made illegitimate claims in that process.

Officials tie move to wider immigration crackdown

Vice President JD Vance and other administration officials framed the suspension as part of a broader effort to confront what they described as fraud and abuse in legal immigration channels. Vance said the government was acting against companies that, in his view, used the system to recruit foreign workers in ways that undercut American workers. Administration officials also said the crackdown extends beyond companies to universities and other institutions using visa programs.

Reuters reported that the suspension also affected filings by other major technology employers, including Adobe and several large IT services firms. Labor Secretary Keith Sonderling said the enforcement action covered companies including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. The Washington Post and AP both reported that the administration described the move as a suspension from a green card-related process rather than a halt to H-1B visas.

Microsoft has long depended on employment-based immigration pathways to hire and retain highly skilled workers in the United States. The latest action places that reliance under fresh political and regulatory scrutiny as the administration seeks to show it is tightening oversight of employer-sponsored immigration programs.

Officials have not publicly disclosed the full scope of the suspension, how long it will last, or what specific allegations prompted the action against Microsoft. No criminal charges were announced as part of Thursday’s move.