White House Blocks Microsoft and Seven Other Firms From Permanent Foreign Worker Hiring Programme

White House Blocks Microsoft and Seven Other Firms From Permanent Foreign Worker Hiring Programme

White House Blocks Microsoft and Seven Other Firms From Permanent Foreign Worker Hiring Programme

The White House has moved to block Microsoft and seven other major technology companies from processing applications under a US immigration programme that allows skilled international workers to pursue permanent residency.

The announcement was made on Thursday by US Vice-President JD Vance, who accused the companies of abusing the H-1B visa system and using international recruitment to replace American workers.

The restrictions affect applications under the Permanent Labor Certification Program (PERM), a key step for many foreign workers seeking permanent residency in the United States, often through a Green Card.

US Labor Secretary Keith Sonderling said the government would stop processing new and pending PERM applications from Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

Vance singled out Microsoft, accusing the technology giant of laying off American employees while continuing to submit applications for international workers.

“No company in the US has abused this system more than Microsoft,” he said.

He cited figures suggesting Microsoft had laid off approximately 6,000 workers while filing 6,800 H-1B visa applications over the same period. Vance argued that the figures demonstrated the company was using foreign recruitment to undercut American wages and displace domestic workers.

Microsoft disputes accusations

Microsoft rejected the suggestion that its visa applications demonstrated widespread replacement of American employees.

A company spokesperson said approximately 80% of its H-1B visa filings during the previous financial year related to people already working for Microsoft, rather than new hires.

The company also said international employees recruited through the programme were paid at the same level of compensation as comparable US workers.

Microsoft added that the vast majority of its employees in the United States were American citizens and said it looked forward to providing the administration with further information.

The company employs more than 200,000 people worldwide.

The H-1B programme is designed to enable US employers to recruit skilled workers for specialised roles where they need particular expertise. The annual cap for new H-1B visas is generally 85,000, although exemptions apply to certain categories of employers and workers.

The PERM process serves a different purpose, allowing employers to pursue permanent employment-based immigration for eligible foreign workers.

Wider implications for the technology industry

The decision could have significant implications for the affected companies and international professionals hoping to settle permanently in the United States.

Major technology businesses have long relied on international recruitment to fill specialist roles. Companies including Amazon, Google, Meta, Apple and Nvidia also use the H-1B programme, although they were not among the eight firms named by Vance in his announcement.

The administration's move comes amid continuing debate over immigration, domestic employment and the role of overseas talent in the US economy.

Vance argued that workers whose visas depend on a sponsoring employer can be left vulnerable if they lose their jobs, describing them as “foreign indentured servants”. In many cases, H-1B workers have a 60-day grace period after employment ends, although the US government has proposed removing that provision.

The eight companies have been approached for comment.

A notable contrast at the White House

The announcement also came on the same day Microsoft chief executive Satya Nadella attended a White House event, where President Donald Trump presented him with the National Medal of Technology and Innovation.

Nadella was among several prominent technology figures recognised for their contributions to innovation.

Despite the award, Microsoft became the main focus of Vance's criticism over international recruitment.

The Daily Round-Up says

The dispute highlights the difficult balance facing the US technology sector: protecting domestic employment while ensuring companies can recruit the specialised talent they need.

Concerns about job losses, wages and the treatment of visa-dependent workers deserve scrutiny. However, the number of visa applications alone does not establish that international employees have directly replaced American workers, particularly when a company says most of its filings concern existing staff.

The consequences of the new restrictions will depend on their implementation, the evidence provided by the affected businesses and any subsequent legal or administrative developments.

The central question is whether the restrictions will protect American workers while allowing US companies to remain competitive — or create additional uncertainty for employers and skilled professionals who rely on established immigration pathways.

Based on reporting by BBC News technology reporter Kali Hays, published on 8 October 2026.