Vice President JD Vance announced Thursday that Microsoft, Adobe, and other tech companies are being suspended from the PERM program, the Department of Labor process employers use to sponsor green cards for H-1B visa holders. Vance made the announcement at a White House event tied to the administration's Fraud Task Force, framing the move as a response to companies that laid off American workers while continuing to seek foreign labor.

Vance singled out Microsoft by name, saying the company had cut thousands of jobs over the past year while still filing H-1B and green card sponsorship requests. The administration described the action as an extension of an existing crackdown that previously targeted Cognizant and Cloudera. As of Thursday, no regulation, Federal Register notice, or Department of Labor memorandum describing the legal mechanism behind the suspensions had been made public, leaving the scope, duration, and appeal process unconfirmed.

What Vance Announced

At the White House event, Vance said companies found to be using the employment-based green card pathway to retain access to foreign labor while cutting domestic staff would lose access to PERM. PERM, short for Program Electronic Review Management, is the Department of Labor's system for certifying that no qualified American worker is available for a position before an employer sponsors a foreign worker for a green card.

Vance directed his sharpest remarks at Microsoft specifically, saying the company had laid off workers even as it kept applying for H-1B visas and the green cards that often follow them. He said the administration's message to Microsoft and any other company, foreign or domestic, was that it needed to prioritize American hires going forward.

The Companies Named

Microsoft and Adobe were the two companies named directly in connection with Thursday's suspension. The announcement also referenced Cognizant and Cloudera as companies previously hit by related enforcement actions, positioning the new suspensions as part of a continuing effort rather than an isolated incident.

Officials did not provide a complete list of every company affected beyond these four, and Vance's remarks referred more broadly to "any other foreign or domestic corporation" that might fall under the same scrutiny.

Understanding the PERM Process

PERM certification is typically the first formal step in employer-sponsored green card cases for workers already in H-1B status, a temporary visa category for specialty-occupation roles often used in technology, engineering, and similar fields. Before an employer can petition for a worker's permanent residency, it must generally test the labor market and obtain a labor certification showing that hiring the foreign worker will not displace qualified U.S. workers.

Because PERM functions as a gateway to permanent residency, a suspension at this stage would affect new sponsorship filings. Whether it also affects applications already filed and pending has not been addressed in the available record.

Stated Rationale and Unverified Allegations

Vance's public comments framed the suspensions as a response to a perceived pattern: companies laying off American employees while continuing to rely on the H-1B and green card pipeline for foreign labor. He argued that firms benefiting from U.S. markets and American investment should be expected to prioritize American workers in hiring.

These are characterized in available reporting as statements made at a press event rather than findings from a published investigation, audit, or formal agency determination. No independently verified data on Microsoft's or Adobe's hiring and layoff patterns, nor any adjudicated fraud finding, accompanied the announcement.

What Remains Unconfirmed

Several procedural questions are not addressed in the available record. There is no confirmation of the specific legal or regulatory authority the administration used to suspend named companies from PERM, nor whether the action was implemented through rulemaking, internal guidance, or another mechanism.

It is also unclear whether H-1B workers who already have PERM applications pending with Microsoft, Adobe, or the other named companies will lose their place in the process, face delays, or continue unaffected. No appeal or reinstatement procedure for suspended companies has been described.

Pending Responses

Outreach for comment was sent to Microsoft and Adobe Thursday morning. As of the initial reporting, neither company had issued a public response to the suspension announcement.

Clinch Law Legal Analysis

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Sources

This article provides general information and does not constitute legal advice. Immigration outcomes depend on individual facts and current law.