US suspends Microsoft, Adobe and IT services firms from green card labour programme

The US government has suspended Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from the Permanent Labor Certification (PERM) programme, which employers use before filing most employment-based green card petitions. The suspensions were announced on Thursday by Vice President JD Vance and Labour Secretary Keith Sonderling. "We will not accept any new or process any pending permanent labor certification applications involving these companies," Sonderling said. [ 1 , 2 , 3 ]

Emirates 24|7 reported that the administration cited alleged fraud and efforts to encourage the hiring of American workers, and Gulf News, citing Reuters, described the action as a crackdown on alleged immigration fraud. The National reported that the administration accused the companies of abusing the programme and that they had been suspended indefinitely. At a briefing in Washington, Sonderling said multiple federal investigations were under way and told reporters: "We are cutting off the head of the snake — the companies that enabled this abuse for decades." [ 1 , 2 , 3 ]

Vance focused on Microsoft. "Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," he said, according to Emirates 24|7. The National quoted him as saying: "There has been no company in the United States, unfortunately, that has abused this system more than Microsoft." Emirates 24|7 reported that Microsoft did not immediately respond to a request for comment, while The National reported that Microsoft, in a statement, defended its use of visa programmes and said it looked forward to providing the administration with additional information. According to The National, Adobe and the Indian companies named did not immediately respond to requests for comment. [ 1 , 3 ]

Under PERM, employers must obtain certification from the Department of Labor that there are no qualified, willing or available US workers for a specific position. Gulf News reported that the decision could disrupt permanent residency applications for thousands of foreign technology workers, noting that many Indian technology professionals work in the United States on H-1B visas and rely on employer sponsorship to obtain green cards. The National described the programme as a talent pipeline for Silicon Valley and Wall Street. [ 1 , 2 , 3 ]

The National reported that Microsoft shares fell more than 1.3% in New York trading on Thursday, while Cognizant reversed earlier losses and was up more than 5%, and shares in Indian IT services firms including Tata Consultancy Services and Infosys rose on Friday. It also reported that Vance's comments came hours before President Donald Trump honoured Microsoft chief executive Satya Nadella with a National Medal of Technology and Innovation at a summit in Washington. [ 3 ]

Emirates 24|7 reported that the administration also announced investigations into nine universities, including Harvard, Yale and Stanford, over allegations that international students were being used to undercut American wages. Labor Inspector General Anthony D'Esposito said subpoenas had already been issued and that investigators would examine "whether foreign influence, improper financial relationships, or visa abuse are compromising federally funded research." [ 1 ]