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U.S. Suspends Green Card Path for H-1B Workers at Major Tech Giants

The United States government has halted the Permanent Labor Certification program for Microsoft, Adobe, and multiple IT outsourcing companies, blocking a key pathway for H-1B visa holders to transition to green cards.

Radwan AbdulhadiEditor and technology writer

Published: October 9, 2026 · Updated: October 9, 2026 · 3 min read

U.S. Suspends Green Card Path for H-1B Workers at Major Tech Giants — Image: Tom's Hardware

PERM Program Suspended for Tech Giants

During a Thursday announcement, Vice President JD Vance revealed that prominent technology companies, including <a href="https://www.tomshardware.com/tag/microsoft">Microsoft</a> and Adobe, <a href="https://go.redirectingat.com?id=92X1584492&xcust=tomshardware_us_1392819851055217810&xs=1&url=https%3A%2F%2Fwww.cnbc.com%2F2026%2F10%2F08%2Fmicrosoft-adobe-green-card-labor-suspension.html&sref=https%3A%2F%2Fwww.tomshardware.com">are now blocked</a> from participating in the PERM program. This program serves as a primary pathway for the companies' H-1B workers to transition toward green card status.

The administration's sudden action was triggered by allegations of fraud and abuse within the system. As a result of the directive, federal authorities will no longer process any new or pending Permanent Labor Certification applications submitted by the affected firms.

Targeted Companies and Outsourcing Firms

Alongside Microsoft and Adobe, several major IT outsourcing corporations were hit with similar suspensions. The list of impacted firms includes Cognizant, Infosys, Tata Consultancy, Wipro, HCL, and Capgemini.

At this time, none of the targeted companies have publicly commented on the federal suspensions or the allegations behind them.

Administration Criticisms and Employment Statistics

During a press conference addressing the policy shift, Vice President Vance leveled heavy criticism at Microsoft specifically. He asserted that no other company in the United States had abused the system to the same extent.

Vance claimed that for every worker Microsoft laid off, the company replaced them with foreign workers under the visa framework. According to his figures, Microsoft laid off 6,000 workers while simultaneously receiving 6,300 H-1B approvals and nearly 3,000 green cards. Furthermore, he noted that the company filed 3,682 PERM applications, with approximately 1,000 overlapping positions relative to the laid-off staff.

Labor Secretary Keith Sonderling confirmed that both Microsoft and Adobe lost their PERM privileges as a result of multiple active federal investigations.

JD Vance press conference — (Image credit: Getty Images) · Source: Tom's Hardware

Broader Federal Crackdown on H-1B Visas

This harsh and rapid enforcement action aligns with a wider government effort to tighten regulations around the H-1B visa program. In July, the Department of Labor initiated a nationwide investigation targeting potential fraud and human trafficking connected to H-1B and PERM programs.

That ongoing investigation specifically examines fraudulent application filings, wage kickbacks, coercive practices, below-wage labor practices, recruitment abuses, and benching—a practice where companies keep H-1B employees on active rosters without assigning them work or issuing pay.

In addition to these actions, an executive order aimed at curbing H-1B program abuse was signed by President Trump in September. Cognizant experienced green card filing suspensions during that same month, while adjustments to H-1B lottery rules have increasingly favored highly skilled and highly paid applicants.

H-1B Visa Volume Across Major Tech Corporations

Data reported by the National Foundation for American Policy outlines the scale of H-1B visa approvals across other prominent technology leaders during fiscal year 2025. Amazon led the group with 4,644 approved H-1B visas.

Amazon was followed by Meta with 1,555 approved visas, Microsoft with 1,394, and Google rounding out the top tier with 1,050 approved H-1B visas.