In a significant shift in labor and immigration policy, US Vice President JD Vance announced today that the federal government is suspending Microsoft’s participation in the PERM program. This program is the primary pathway for high-skilled foreign workers to transition from temporary visas to permanent residency (Green Cards).
Widespread Suspensions and Fraud Allegations
Labor Secretary Keith Sonderling clarified that the exclusion extends beyond Microsoft to include several major software and consulting firms, such as Adobe, Cognizant, Infosys, Tata, Wipro, HCO, and Capgemini. The move follows allegations of fraud and hiring practices that allegedly prioritize foreign nationals over American citizens.
Attorney General Todd Blanche stated that the Department of Justice is actively investigating companies suspected of favoring foreign hires. Vice President Vance emphasized that Microsoft must demonstrate a genuine commitment to American workers, stating his message to the company is simple: "You must hire Americans."
Academic Institutions Under Scrutiny
The federal crackdown also targets the academic sector. Nine prestigious universities, including Harvard, Yale, Stanford, Brown, and MIT, are under investigation for their use of foreign students and academics. Authorities allege these institutions utilize the J-1 visa program to suppress domestic wages. Labor Inspector General Anthony D’Esposito confirmed that subpoenas have already been served to these institutions.
The PERM (Program Electronic Review Management) process requires employers to prove that no qualified American workers are available for a specific role before sponsoring a foreign employee for permanent residency. Vance indicated that the administration plans a comprehensive review of the H-1B and J-1 visa programs, warning that the current exclusions will remain in place "for as long as necessary."
