Microsoft suspended from PERM green card program the same day its CEO receives a medal

Microsoft Suspended from PERM Green Card Program Amid Allegations of Visa Fraud

Background

The US Department of Labor suspended Microsoft from the PERM program, a key path for foreign workers to obtain green cards, amidst allegations of visa fraud. The suspension affects eight companies, including Microsoft, Adobe, and Cognizant.

What the Suspension Means

The suspension halts new PERM application submissions from the affected firms. It also stops processing on cases already pending. However, it does not pull existing H-1B work authorizations. Employees currently working on those visas are not losing their status because of this action.

Allegations and Figures

Vice President JD Vance supplied the figures that frame the case against Microsoft. He said the company laid off approximately 6,000 US workers in 2025. Over the same stretch, according to Vance, Microsoft received roughly 6,300 H-1B visa approvals. He also pointed to nearly 3,000 green card processes.

Microsoft's Response

Microsoft has pushed back on the interpretation. The company says approximately 80% of its recent H-1B filings were for status changes or extensions for people it already employs, not new hires. The company tied those filings to a figure of about 1% of the US workforce. It also reaffirmed that it is committed to hiring American talent alongside expertise from abroad.

The Medal and the Penalty

The PERM suspension and the Nadella medal arrived on the same day. Trump praised Nadella for leading Microsoft's transformation and credited the CEO with pushing forward advances in cloud computing and artificial intelligence.

What This Means for Tech Employers and Workers

For the eight suspended companies, the immediate cost is operational. Any green card sponsorship plans sitting in the PERM queue are now stalled with no clear restart date. Foreign workers caught in the pending queue face the sharpest uncertainty. Their current H-1B status is intact, but the longer-term path to permanent residency is on hold while investigators work.