Summary
The Trump administration has suspended Microsoft, Adobe, and several major technology and IT services companies from a U.S. program used by employers to sponsor skilled foreign workers for permanent residency. The administration accused the companies of fraud, while Microsoft said most of its U.S. workforce consists of American workers and that many of its recent H-1B visa filings involved existing employees.
The decision could affect employment-based immigration processes for the named companies and has raised questions about how the U.S. government plans to enforce immigration rules across the technology industry.
What Happened?
The U.S. government announced the suspension of Microsoft and several other technology companies from a program involving permanent labor certification applications, according to a Reuters report published on October 8, 2026.
The companies named in the report include Microsoft, Adobe, Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro.
U.S. Vice President JD Vance said the administration wanted technology companies to prioritize American workers. Labor Secretary Keith Sonderling stated that the government would not accept new or pending permanent labor certification applications involving the affected companies.
The action follows allegations that the companies improperly used immigration-related programs. However, the announcement does not, by itself, establish that every company named committed fraud.
Why Has the US Government Taken This Step?
The Trump administration says it wants employers to give qualified American workers greater opportunities and prevent immigration programs from being misused.
Technology companies have long relied on international talent to fill specialized positions in software engineering, artificial intelligence, cloud computing, cybersecurity, and other technical fields.
The H-1B visa program allows eligible U.S. employers to hire foreign professionals for specialty occupations. Separately, employment-based green card sponsorship can involve a permanent labor certification process designed to assess whether qualified U.S. workers are available for a position under the applicable rules.
The administration’s latest action targets the permanent labor certification process for the named companies. It should not automatically be interpreted as a blanket cancellation of all their existing H-1B visas or employees’ immigration status.
Which Companies Are Affected?
The companies identified in the reports include:
- Microsoft: The U.S.-based technology company develops Windows, Azure, Microsoft 365, and other software and cloud services.
- Adobe: The company is known for products such as Photoshop, Acrobat, and its Creative Cloud platform.
- Capgemini: A multinational IT consulting and technology services company.
- Cognizant: An IT services and consulting company that works with businesses across multiple industries.
- HCL: An Indian technology services company operating internationally.
- Infosys: An Indian IT services and consulting company with a substantial U.S. business.
- Tata: The report identifies Tata among the affected companies.
- Wipro: An Indian technology services and consulting company serving global clients.
The suspension could complicate employment-based green card sponsorship for affected workers, depending on their individual circumstances and the scope of the government’s action.
The precise impact on pending applications, existing employees, and future sponsorships will depend on the administration’s implementation of the decision.
Microsoft Responds to the Allegations
Microsoft said it supports the American workforce and emphasized that the vast majority of its U.S. employees are American.
In a statement shared with TechCrunch, the company said it submitted approximately 6,000 H-1B visa applications during the previous fiscal year. According to Microsoft, around 80% of those filings were intended to extend or change the status of existing employees rather than bring in new hires.
The company added that the remaining applications for new employees involved people who were already legally present in the United States and chose to work for Microsoft.
Microsoft said these new-hire filings represented approximately 1% of its U.S. workforce. It also stated that it files H-1B petitions only for candidates who meet the program’s requirements and pays H-1B employees comparably to other employees performing similar work.
The company said it looked forward to providing additional information to the administration.
Adobe did not immediately respond to a request for comment, according to the report.
How Could the Decision Affect Foreign Technology Workers?
The suspension could create uncertainty for skilled foreign professionals whose employers are involved in the permanent labor certification process.
For many employment-based green card applicants, labor certification is an important step before an employer can proceed with the relevant immigrant petition. A disruption at this stage can affect the timing and progress of an application.
The practical consequences will vary according to each worker’s immigration category, current status, and stage in the process.
Workers whose applications are affected may need clarification from their employers and immigration lawyers about the available options. The suspension should not be assumed to mean that all foreign employees at the named companies must leave the country.
The action could also influence how technology companies approach future hiring and permanent residency sponsorship for international employees.
H-1B Visas and Green Cards: What Is the Difference?
H-1B visas and employment-based green cards serve different purposes.
An H-1B visa allows an eligible employer to hire a foreign professional temporarily for a qualifying specialty occupation, subject to the program’s rules.
An employment-based green card can provide permanent resident status. For certain employer-sponsored categories, the process includes labor certification before the employer proceeds with the next immigration steps.
Consequently, suspending permanent labor certification applications is not the same as suspending the entire H-1B visa program.
The distinction matters because a worker may hold an H-1B visa while separately pursuing permanent residency through an employer. The effect of the latest action will depend on which part of the immigration process is involved.
Universities Also Face Scrutiny
Vance also said the administration would investigate nine universities, including Harvard, Yale, and Stanford, over allegations involving programs that allow international students to study in the United States.
The administration alleged that these programs were being abused in ways that could undermine wages and opportunities for American workers.
The announced investigations represent a separate development from the action involving technology companies. Further details would be needed to establish the specific allegations against each university and the possible consequences.
What Happens Next?
The affected technology companies and their employees will be watching for further information about the scope of the suspensions and how the government will handle existing applications.
Microsoft has indicated that it intends to provide additional information to the administration. The response from other named companies and any further government guidance could help clarify the impact on employment-based immigration.
For the wider technology industry, the decision adds uncertainty around hiring international professionals and sponsoring permanent residency for employees.
Conclusion
The Trump administration’s suspension of Microsoft, Adobe, and several major IT services companies from the permanent labor certification process marks a significant development in U.S. employment-based immigration policy.
The government says the action is intended to address alleged misuse of immigration programs and protect American workers. Microsoft, meanwhile, argues that most of its U.S. workforce consists of Americans and that most of its recent H-1B filings concerned existing employees.
The full impact will depend on how the suspensions are implemented, how the companies respond, and whether further details emerge about the allegations. For skilled foreign workers, the distinction between temporary work authorization and permanent residency will be particularly important.