The Biden administration has announced a temporary suspension of Microsoft, Adobe, and several other major technology companies from sponsoring foreign workers for U.S. permanent residency, citing alleged abuses of immigration programs. Vice President JD Vance led the announcement on Thursday, asserting that Microsoft had exploited the system at the expense of American workers by replacing U.S.-born employees with foreign labor.
Vance specifically criticized Microsoft, alleging that the company had laid off 6,000 American workers over the past year while obtaining approximately 6,300 H-1B visas and sponsoring roughly 3,000 green cards for foreign employees. He described the visa holders as “indentured servants” paid significantly less than their American counterparts and accused the tech giant of committing visa fraud by misusing the Department of Labor’s Permanent Labor Certification (PERM) program. Under PERM, employers must demonstrate that they cannot find qualified Americans before sponsoring foreign workers for green cards.
Other companies suspended from the program include IT outsourcing firms such as Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The administration did not specify the duration of the suspensions, stating they would last “as long as necessary.”
In addition to the suspensions, the Department of Labor’s Inspector General, Anthony D’Esposito, announced the launch of investigations into the use of J-1 student visas at nine prominent universities, including Harvard, Yale, Stanford, Brown, the University of Pittsburgh, the University of California, Davis, Caltech, Arizona State, and the Massachusetts Institute of Technology. Subpoenas have been served as part of the probe into potential visa misuse and fraud.
Microsoft responded by challenging some of the administration’s claims, stating that the vast majority of its U.S. employees are citizens and that about 80% of its recent H-1B visa applications were for the extension or change of status of current employees, rather than new arrivals. The company emphasized its competitive wage practices and commitment to hiring American workers alongside foreign talent.
Several universities under investigation expressed their intent to cooperate and affirmed compliance with visa laws. Brown University highlighted the important contributions of international scholars to their research and innovation, while Arizona State University emphasized that it hires according to existing U.S. laws and policies.
The H-1B visa program has long been the subject of debate, with proponents arguing that foreign workers contribute to U.S. productivity and innovation, and critics asserting that it can undercut American wages and employment opportunities. The Trump administration previously attempted to impose higher fees on H-1B visa applications to curb usage, but a federal court blocked the increase, ruling it an unauthorized tax.
Despite these ongoing controversies, President Joe Biden awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation in a separate event on the same day, underscoring the complexity of the relationship between government policy and the tech industry. Nadella himself came to the United States for graduate school and initially entered on an H-1B visa before becoming a citizen.
The administration’s actions reflect a continued effort to scrutinize immigration programs and enforcement related to skilled foreign workers amid broader concerns about protecting American jobs and wages. Critics of the administration’s approach argue that evidence for widespread fraud has been limited and that visa holders play a crucial role in the U.S. economy. The government, however, maintains that cracking down on abuse is necessary to uphold the integrity of visa programs and ensure fair labor practices.