Vice President JD Vance moved to suspend Microsoft’s access to the US green card pipeline on Thursday, halting the company’s ability to file for permanent labor certifications. The action strikes at the core of how major tech firms retain foreign talent, specifically targeting the Permanent Labour Certification (PERM) program, which serves as the mandatory first step for foreign workers seeking permanent residency. Microsoft immediately pushed back, releasing a statement that frames the suspension as a misunderstanding of its hiring practices.
The company offered specific data to defend its record, revealing that 80% of the approximately 6,000 H-1B visa applications filed in the last fiscal year were not for new recruits. These petitions were designed to extend or change the status of employees already working at Microsoft. The remaining 20%, which included filings for individuals legally present in the US who switched jobs to join the company, represented just 1% of Microsoft’s total US workforce. "They are not new arrivals to our country," the statement read, emphasizing that these hires were already part of the domestic labor pool.
Microsoft also addressed the wage concerns often raised in immigration debates, asserting that its H-1B employees earn compensation comparable to their American counterparts. The company claimed its wages are among the highest in the tech sector for this visa category, directly countering narratives that tech giants use the system to undercut American workers. "We believe in the strength and talent of the American workforce," the statement said, noting that the vast majority of its US-based staff are American citizens or permanent residents.
The suspension creates an immediate logistical bottleneck for Microsoft’s long-term staffing strategy. While H-1B visas allow for temporary work, the PERM process is the gateway to the green card, which offers permanent status and the right to work without visa sponsorship. Until the administration reviews Microsoft’s additional information, the company faces an uncertain timeline for sponsoring long-term foreign hires. The move signals a broader, aggressive enforcement posture by the current administration toward large corporations relying on the H-1B and green card ecosystem.