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US suspends green card filings at Microsoft and other tech firms, probes nine universities

🇨🇳 China, Washington 09:23 Policy & regulation Business3 Tech2 Official2 updated 17 h ago first reported by 界面新闻

In short

The US federal government said on October 8 it will suspend Microsoft and several other technology companies from the "permanent labor certification" programme, the first step for H-1B visa holders seeking employer-sponsored green cards. Vice President Vance also said nine universities, including Harvard, Yale and Stanford, face investigation over suspected J-1 visa fraud.

Read the full story 2 min read

The US federal government said on October 8 that it will suspend Microsoft and several other technology companies from the "permanent labor certification" programme, Xinhua reported. The programme is the first step for foreign employees holding H-1B visas to apply for permanent residence, or a green card, through their employers. China News Service, citing US media, reported that the suspension covers new and pending applications from eight technology companies, including Microsoft and Adobe. [ 5 , 6 , 7 , 8 ]

Vice President Vance announced the decision on Microsoft at a press conference at the White House, Xinhua reported. He said the company had engaged in "fraud" and must hire good American workers, adding that companies cannot fire American workers and replace them with foreign workers in unstable conditions. China News Service reported that Vance accused Microsoft of "abusing the visa system" and "prioritising foreign employees over American employees", and quoted him as saying: "You are a great American company, but you must hire good American workers." Vance said the measure would last "as long as necessary". [ 6 , 8 ]

The US Labor Secretary said large technology companies including Adobe, Cognizant and Infosys would be suspended from the programme, and that the department would no longer accept or process any new or pending permanent labor certification applications involving them, according to Xinhua. [ 6 , 8 ]

Vance also criticised nine universities for misusing the J-1 visa, which allows foreign students and scholars to come to the US for work and study exchange programmes. He said MIT, Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech and Arizona State University were suspected of J-1 visa fraud and would face further investigation. Labor Department Inspector General Anthony D'Esposito said subpoenas had been served on the nine universities. [ 3 , 5 , 6 , 7 ]

A Microsoft spokesperson said in a statement that the company would give the Trump administration more information on the immigration status of its employees. Of the roughly 6,000 H-1B applications Microsoft filed in its last fiscal year, 80% were to extend or change the status of existing employees and were not for hiring new staff, the spokesperson said, according to China News Service. [ 8 ]

Xinhua noted that the US government has been tightening visa policy. On August 24 the Department of Homeland Security published a proposed rule to charge about $103,000 for H-1B visa applications, after an earlier attempt to raise the fee to $100,000 was rejected by a court. On October 7 the department proposed that US universities pay $70,000 for each international student's first application to the Optional Practical Training programme, and a further $30,000 for an extension. [ 6 ]

Why it matters

The certification is the first step for foreign H-1B employees to obtain permanent residence through their employers, so the suspension affects foreign staff at the named companies. Xinhua placed the move alongside other recent US proposals to raise visa-related costs, including fees for H-1B applications and for international students' practical training.

Key facts

  • The US federal government said on October 8 it will suspend Microsoft and several other tech companies from the "permanent labor certification" programme. [ 5 , 6 , 7 , 8 ]
  • The programme is the first step for H-1B visa holders to apply for permanent residence (a green card) through their employers. [ 5 , 6 , 7 , 8 ]
  • China News Service, citing US media, reported that eight companies are covered, including Microsoft and Adobe; Xinhua named Adobe, Cognizant and Infosys among the companies affected. [ 6 , 8 ]
  • Nine universities face investigation over suspected J-1 visa fraud: MIT, Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech and Arizona State University. [ 3 , 5 , 6 , 7 ]
  • Labor Department Inspector General Anthony D'Esposito said subpoenas had been served on the nine universities. [ 6 ]
  • Vance said the measure against the tech companies will last "as long as necessary". [ 6 ]
  • A Microsoft spokesperson said 80% of the roughly 6,000 H-1B applications it filed in its last fiscal year were to extend or change the status of existing employees. [ 8 ]

Confirmed by several sources

  • The US government said on October 8 it will suspend Microsoft and other tech companies from the permanent labor certification programme, the first step toward an employer-sponsored green card for H-1B holders. [ 5 , 6 , 7 , 8 ]
  • Nine US universities, including Harvard and Stanford, face investigation over suspected J-1 visa fraud. [ 3 , 5 , 6 , 7 ]
  • Vice President Vance announced the measure at a press conference and said Microsoft must hire good American workers. [ 6 , 8 ]
  • The US Labor Secretary said the suspension covers new and pending permanent labor certification applications from the companies. [ 6 , 8 ]

Still unclear

  • The exact number and full list of companies suspended. China News Service, citing US media, put the number at eight, while Xinhua said "several" and named only Microsoft, Adobe, Cognizant and Infosys.
  • How long the suspension will last. Vance said only that it would last "as long as necessary", according to Xinhua.
  • The specific conduct behind the suspected J-1 visa fraud at the nine universities. The documents report the accusation and the subpoenas but give no details of the alleged violations.

What local media are saying

Official sourcesXinhua and China News Service gave the fullest accounts, with Vance's and the Labor Secretary's remarks, the list of nine universities, Microsoft's response and background on earlier US moves to tighten visa policy. [ 6 , 8 ]
Business mediaCLS ran a brief flash on the university investigation and then a short summary of both the green card suspension and the J-1 probe. [ 3 , 5 ]
Technology media36Kr republished Xinhua's summary of the green card suspension and the university investigation. [ 7 ]

Timeline, local time

  1. October 8: CLS reports the US is investigating nine universities, including Harvard, Yale, Stanford and Brown, over J-1 visa matters. [ 3 ]
  2. October 9: CLS reports the suspension of green card applications at several tech firms and the university probe. [ 5 ]
  3. October 9: Xinhua publishes a full report from Washington with remarks by Vance and the Labor Secretary. [ 6 ]
  4. October 9: 36Kr carries Xinhua's summary. [ 7 ]
  5. October 9: China News Service reports, citing US media, that eight tech companies are covered, and carries Microsoft's response. [ 8 ]