The administration suspends Microsoft, Adobe and IT outsourcers from the green card labor program, citing fraud
Vice President JD Vance announced on Thursday that Microsoft is suspended from PERM, the labor certification step employers use to start a green card for a foreign worker, ABC, the Guardian, the New York Times, the Washington Post, Reuters, AP and CNBC reported. Politico and CNBC reported that Adobe is also barred. Axios said the administration’s foreign-worker crackdown reaches several IT firms, and Reuters said India’s TCS expects no impact on its workforce strategy. Vance said Microsoft had abused the system while cutting American workers and that the suspension would last as long as needed. The layoff and visa figures he cited are the administration’s claims. Politico separately reported that the administration is probing colleges for potential visa fraud.
Large companies rely on PERM and H-1B visas to hire skilled foreign workers. A suspension slows the path to permanent residence for those workers and puts pressure on their employers.
If you work in tech on an H-1B visa at an affected company, new green card filings are frozen. Applicants elsewhere are not directly affected yet.
Companies should not displace American workers while sponsoring foreign ones, and the program has been abused.
Targeting named firms before any finding of fraud punishes employers and workers who followed the rules, and it threatens a core talent pipeline.
Watch for Microsoft’s and Adobe’s formal responses, any court filing, and the Labor Department’s evidence. A suspension with no published findings is a political act first.
DailyDrop U.S. No. 5 · October 9, 2026