US Suspends Residency Program for Microsoft and Adobe
The United States government has frozen access to a permanent residency program for several major technology companies, accusing them of abusing worker visa systems.
Radwan AbdulhadiEditor and technology writer
US Government Freezes Permanent Residency Access
The United States government has suspended access to a permanent residency program for international workers on H-1B visas across seven technology companies. Microsoft and Adobe are the two biggest technology brands targeted in the announcement, alongside five other businesses: Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.
Labor Secretary Keith Sonderling stated regarding the action that authorities will not accept any new or process any pending permanent labor certification applications involving these companies, as reported by [Engadget](https://www.engadget.com/2281503/us-suspends-permanent-residency-program-for-microsoft-adobe-and-other-tech-companies/).
Allegations of Visa Program Abuses
The announcement by Vice President JD Vance claimed that the targeted businesses had abused federal programs allowing workers on H-1B visas to apply for green cards. Vance alleged that these companies intentionally under-advertised jobs domestically to seek out international employees instead of hiring American citizens, and specifically called out Microsoft as a reported offender.
According to details [said](https://www.reuters.com/business/us-suspending-permanent-residency-program-for-microsoft-vance-says-2026-10-08/) by administration officials, companies would use a lack of domestic response to replace American workers with foreign employees. Vance stated that no company in the United States had used the system more than Microsoft.
Reuters reported that according to statistics from the US Citizenship and Immigration Services department, Amazon remains the top employer of H-1B visa recipients, followed by Tata Consultancy Services, Infosys, Apple, and Microsoft.
Microsoft Responds to the Suspension
In an official [statement](https://blogs.microsoft.com/on-the-issues/2026/10/08/microsoft-comment-on-recent-immigration-questions/), Microsoft noted that the vast majority of its employees in the United States are American citizens. The company stated that it looks forward to providing the administration with additional information regarding its hiring practices and visa applications.
Microsoft explained that of approximately 6,000 H-1B visa applications submitted in the last fiscal year, 80 percent were to extend or change the status of existing Microsoft employees rather than hire new people. The remaining filings were for individuals already legally residing in the United States who chose to join the company, equating to only 1 percent of its domestic workforce.
The corporation maintained that it only files H-1B petitions for individuals who meet the rigorous standards of the visa category. Meanwhile, outreach has been conducted toward Adobe for comment on the unfolding situation.
Broader Regulatory Context and Prior Enforcement
The recent suspension follows a series of government actions targeting technology sector hiring practices. In August, the Department of Justice secured a [$3.2 million settlement](https://www.engadget.com/2230316/doj-extracts-dollar32-million-from-openai-over-hiring-discrimination-allegations/) from OpenAI over similar claims that it under-advertised job openings domestically and preferred workers with temporary employment visas.
Similar enforcement cases and settlements were previously brought against [Meta](https://www.engadget.com/facebook-doj-worker-settlement-201346028.html) in 2021 and [Apple](https://www.justice.gov/archives/opa/pr/justice-department-secures-25-million-landmark-agreement-apple-resolve-employment) in 2023 under comparable allegations of hiring discrimination and visa preference.
In a related development, the government also stated it would investigate nine higher education institutions—including Harvard University, Yale University, and Stanford University—for similar alleged abuses concerning J-1 visa programs intended for international students.
Sources
- EngadgetUS suspends permanent residency program for Microsoft, Adobe and other tech companies
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