The White House has indefinitely blocked Microsoft (NASDAQ: MSFT) from the Department of Labor’s Permanent Labor Certification Program (PERM), alongside seven other technology and IT firms, citing allegations of visa fraud and the displacement of domestic workers. The decision halts all new and pending green card applications for skilled foreign workers.
The Bottom Line
- The Allegations: Vice President JD Vance claimed Microsoft laid off approximately 6,000 domestic workers in 2025 while filing 6,800 H-1B visa applications over the same period, accusing the company of using foreign labor to undercut wages.
- The Defense: Microsoft countered that 80% of its H-1B filings last year were extensions or status updates for existing employees, maintaining that its H-1B compensation ranks among the highest in the sector.
Labor Department Halts Permanent Residency Pathway
Labor Secretary Keith Sonderling announced the enforcement action during a Thursday conference, stating that the federal government will not process any new or pending PERM applications from the targeted firms.
The PERM process serves as a mandatory precursor for employers seeking employment-based green cards, requiring certification from the Department of Labor that no qualified or available U.S. worker can be found for a specific position.
| Company / Entity | Reported Action / Status | Context & Figures |
|---|---|---|
| Microsoft (NASDAQ: MSFT) | Blocked from PERM program | Laid off ~6,000 workers while filing ~6,800 H-1B applications; median H-1B salary $180,710. |
| Adobe (NASDAQ: ADBE) | Blocked from PERM program | Suspended alongside Microsoft due to active federal investigations, according to Labor Department officials. |
| Infosys & Tata | Blocked from PERM program | Named among major information technology firms suspended from processing permanent labor certifications. |
Executive Defense and Corporate Pushback
Addressing the administration’s claims, Microsoft issued a public statement maintaining that the vast majority of its U.S. workforce consists of American citizens. The company clarified that 80% of its approximately 6,000 H-1B visa applications submitted in the previous fiscal year were designated to extend or change the status of workers already employed by the firm, rather than onboard fresh arrivals.
According to data from Levels.fyi, the median base salary for an H-1B worker at Microsoft sits at $180,710. Microsoft asserted that its compensation packages rank among the highest across all H-1B filings in the technology sector.
Concurrent Investigations Into Elite Universities
Investigators will probe whether these institutions exploited international PhD candidates and scholars to reduce wage costs. Vance alleged during the briefing that American researchers earn $20,000 more than comparable personnel brought in under the J-1 visa framework, framing the alleged discrepancies as an institutional compromise of federally funded research.
Timing of the White House Technology Summit
The punitive labor announcements coincided with a high-profile White House ceremony where President Donald Trump awarded the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella. Nadella was joined by other prominent technology executives, including Tesla (NASDAQ: TSLA) CEO Elon Musk, Nvidia (NASDAQ: NVDA) CEO Jensen Huang, and Advanced Micro Devices (NASDAQ: AMD) CEO Lisa Su.
While Vance singled out Microsoft for systemic abuse of the H-1B pipeline, he differentiated individual immigrant executives like Musk and Su, stating that the administration supports high-value foreign founders building enterprises domestically, even as it moves to restrict corporate sponsorship programs for general engineering staff.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
