Microsoft suspended from applying for green cards for H-1B workers, JD Vance says

The federal government has suspended Microsoft from sponsoring foreign staff for permanent residency through the H-1B skilled worker visa route, Vice-President JD Vance announced on Thursday. Software company Adobe faces an identical suspension, according to the Department of Labor.

Speaking at a news briefing, Vance claimed that Microsoft had misused the visa system to cut costs at the expense of domestic staff. He alleged that the tech firm had cut American jobs and brought in foreign personnel to fill the gaps, asserting that H-1B recipients earn an average of $20,000 less than domestic counterparts performing identical duties. He argued the practice suppresses local compensation while swelling corporate earnings.

The disciplinary action halts the processing of green card pathways for affected workers at both enterprises. US Labor Secretary Keith Sonderling confirmed in a statement that federal officials will refuse new permanent labor certification filings and pause any pending reviews connected to Microsoft and Adobe. Sonderling noted that the two organizations have together secured roughly 230,000 H-1B approvals and around 100,000 permanent certifications since 2009.

Microsoft pushed back against the administration's claims, saying in a statement that most of its workforce consists of Americans. The Redmond-based firm noted that 80% of its H-1B filings over the preceding year were extensions or modifications for existing staff rather than outside recruits. Microsoft also maintained that its compensation packages rank among the most generous in the technology sector and that visa holders receive equal pay relative to domestic peers handling comparable tasks.

Technology firms represent the heaviest corporate users of the H-1B program, which offers temporary employment authorization to professionals with specialized training while permitting concurrent applications for legal permanent residence. In 2026, Microsoft filed petitions for nearly 3,700 workers, placing it fifth nationwide. Amazon led the category during the same period with upwards of 9,300 filings.

The enforcement measure reflects broader scrutiny by the Trump administration over skilled immigration frameworks, which officials claim allow corporate employers to suppress domestic earnings.

Immigrant rights and advocacy groups, however, have disputed the White House's rationale. Organizations such as the National Immigration Forum maintain that drawing global specialists in scientific, mathematical, and technological disciplines remains vital to American innovation and enterprise. The forum cautioned in September 2026 that imposing harsher restrictions on skilled personnel risks placing domestic industries at a disadvantage against foreign economic competitors. Advocates have instead favored revisions that decouple work authorization from individual corporate sponsors to grant foreign staff greater professional mobility.