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The U.S. Department of Enforcement and Labor suspended eight major tech and IT outsourcing companies from participating in the Permanent Labor Certification (PERM) program on October 8, 2026


Trump Administration Cuts Off Access to a Major Immigration Program for Workers at Microsoft and Adobe. Big IT Employers, including Microsoft and Adobe, will no longer be able to sponsor foreign workers for job-related green cards. JD Vance spoke at a media conference and singled out Microsoft for laying off 6,000 American workers in favor of hiring foreign talent for less money and lower costs, i.e. giving foreigners less company benefits, paying them lower wages, and more employer-favored rules of employment).

“There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” Vice President JD Vance said on Oct. 8th.

Affected Companies

The suspension halts new PERM applications and freezes all pending applications for the following eight entities:

  • Microsoft (Tech)
  • Adobe (Tech)
  • Cognizant (IT outsourcing)
  • Infosys (IT outsourcing)
  • Tata Consultancy Services (TCS) (IT outsourcing)
  • Wipro (IT outsourcing)
  • HCL Technologies (IT outsourcing)
  • Capgemini (IT consulting/outsourcing)

Key Details of the Action

  • What PERM Is: The PERM labor certification is the primary first step for employers to sponsor an H-1B visa holder for a permanent employment-based green card. [1, 2]
  • Reason for Suspension: Labor Secretary Keith Sonderling and the Trump administration cited active federal investigations and allegations of program misuse, fraud, and the displacement of U.S. workers. [1, 2, 3]
  • H-1B Status Impact: The action applies specifically to the PERM green card process; active H-1B visas are not automatically canceled or suspended by this announcement. [1, 2]
  • Current Status: Existing approved I-140 petitions, pending I-485 adjustments, and the status of corporate subsidiaries remain under review with no comprehensive final guidance issued yet. Employees affected are advised to consult their respective company’s immigration  

Some say that the suspension of the PERM program for big IT companies marks a victory for American tech workers who have complained about unfairly losing out on jobs to immigrant workers.

Jobs Now, an advocacy group composed of US citizens working in big tech, celebrated Vance’s announcement on its X account with a video of dancing crabs. The group publicizes otherwise difficult-to-find PERM job postings and says it helped Americans apply to nearly 500,000 jobs across 7,000 employers between last January and this past July.

The organization and its members have also filed complaints against big tech companies about alleged abuse of the PERM system, and have called for major changes to the employment immigration system. “Every job in America should be offered to an American first, no exceptions,” the group told WIRED in an unsigned statement.

This isn’t the first time tech companies have been targeted over PERM. Earlier this year, OpenAI and a company it acquired agreed to settle accusations from the Trump administration about violating rules for the program. Apple reached a similar deal in 2023.

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