PERM is the process US employers use when they want to sponsor a foreign worker for a green card through employment. In practical terms, it is one of the main pathways that allows some H-1B workers, to move from temporary status to permanent residence in the United States. On October 8, 2026 Vice President JD Vance announced that Microsoft, along with Adobe, Cognizant, Infosys, Wipro, Capgemini, HCL Technologies, and Tata Consultancy Services would be suspended from using the PERM process, a step that could prevent the tech leaders from sponsoring certain H-1B workers for permanent residency in the US.
Officials said the suspension would “last as long as it needs to.”
According to the administration, the named technology companies abused the PERM system; arguing that some corporations were using H-1B visas not just to fill specialized roles, but as part of a broader pipeline that led to green card sponsorship. They said that pipeline was being misused, and that investigations had uncovered fraud.
Mr. Vance made Microsoft the centerpiece of his remarks. He said the company had laid off American workers while also benefiting from thousands of H-1B visa applications and green card requests. He framed that as evidence that the system had been tilted away from US workers. Microsoft disputed that description. In a statement, the company said most of its employees are citizens and explained that many of its H-1B filings were for existing employees whose status was being extended or changed. Microsoft also said many of the people involved were already legally in the country before joining the company. The company added that it pays among the highest wages in the technology industry.
The H-1B program has been controversial for years, with critics on both sides of the political spectrum calling for changes. Supporters say it helps US employers fill hard-to-staff positions and attract talent they cannot easily find elsewhere. Opponents say it can be used to hold down wages or replace American workers. Mr. Vance said the issue was not about bringing in exceptional talent for highly specialized work. Rather, he argued that companies were using the system too broadly and at too low a wage level, which he said amounted to fraud with US workers being replaced with “foreign indentured servants.”
The timing of the announcement drew added attention. Just hours later, President Trump awarded Microsoft chief executive Satya Nadella the National Medal of Technology and Innovation at a Washington summit attended by Elon Musk, a former H-1B visa holder, and other technology executives. For now, the administration’s message is clear: it intends to scrutinize how companies use employment-based immigration programs and is focused on blocking the pathway to permanent US residency for foreign professionals.
