Vice President JD Vance announced on Thursday the suspension of Microsoft and Adobe from the PERM program, which allows employers to sponsor foreign workers for permanent residency green cards. This suspension effectively blocks the companies from sponsoring H-1B visa workers for permanent residency. Vance accused Microsoft of abusing the system, stating, "Now there has been no company in the United States, unfortunately, that has abused the system more than Microsoft." He emphasized the importance of the PERM program for foreign workers seeking to remain in the U.S. after entering on H-1B visas.
In a statement, Microsoft defended its practices, asserting that it hires American workers and attracts global talent. Vance alleged that Microsoft laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas and nearly 3,000 green cards, suggesting that for every American worker laid off, Microsoft replaced them with one and a half foreign workers. Microsoft responded by stating that the majority of its employees in the U.S. are Americans and that it complies with H-1B standards.
The announcement coincided with President Donald Trump awarding Microsoft CEO Satya Nadella the Medal of Technology and Innovation, highlighting a contradiction in Vance's actions. Vance acknowledged this contradiction but reiterated his commitment to prioritizing American workers. He stated that the suspension would last as long as necessary and that the administration has tools to extend it indefinitely if required.
Vance also criticized the H-1B visa program for being "rife with fraud" and emphasized the need for companies to prioritize American workers. Attorney General Todd Blanche indicated that investigations would be conducted against companies favoring foreign workers over Americans. Additionally, Inspector General of Labor Anthony D'Esposito announced an investigation into J-1 visa fraud involving several major American universities.
D'Esposito remarked, "If an American university is breaking the law to save a dollar, while exposing American research to a foreign adversary, that is not academic excellence. It's institutional betrayal."