US Suspends Microsoft, Adobe From Green Card Program
The Trump administration barred Microsoft, Adobe and six large IT outsourcing firms from the PERM program, halting their ability to sponsor foreign employees for permanent residency.
The Morning Brief Desk · October 9, 2026 · Based on reporting by CNBC Top News
The Labor Department on Thursday removed Microsoft and Adobe from PERM, the federal process employers use to back foreign workers seeking permanent residency in the United States. Labor Secretary Keith Sonderling pointed to "multiple active federal investigations" tied to how the companies have used the program, according to CNBC.
The action reaches well beyond the two software makers. Six major IT outsourcing companies -- Capgemini, Cognizant, HCL, Infosys, Tata and Wipro -- were suspended at the same time, TechCrunch reported, pulling in much of the industry that supplies contract technology labor to American businesses. While the suspensions remain in place, none of the affected companies can file new green card applications on behalf of their foreign employees.
The companies named in the suspension had not publicly detailed their positions in the material reviewed for this briefing, and the Labor Department has not specified what the federal investigations involve or how long the suspensions will last. Vice President JD Vance, meanwhile, has accused companies of abusing the H-1B visa pipeline, DW reported, linking the enforcement action to a broader administration push against foreign hiring in technology.
The context
PERM is the Labor Department process through which employers certify that hiring a foreign worker for a permanent position will not displace or undercut American workers, a required step before many employment-based green cards can move forward. The Thursday suspensions fit into a wider pattern: the Trump administration has been tightening scrutiny of foreign labor in the technology sector, and Vance's public criticism of the H-1B system signaled that skilled-worker visa programs were a target. The inclusion of Capgemini, Cognizant, HCL, Infosys, Tata and Wipro alongside Microsoft and Adobe extends the enforcement effort across the IT outsourcing business, which relies heavily on foreign staff working in the US. What prompted the specific investigations Sonderling cited, and what evidence of wrongdoing exists, has not been disclosed in the available reporting.
Why it matters
This is a direct federal move against some of the largest technology employers in the country, and it changes the immigration math for their workforces. Foreign employees at the eight suspended companies who were counting on employer sponsorship for permanent residency now face an indefinite block on new filings. For the companies, the suspension complicates retention of skilled staff whose legal status often depends on a path to a green card. More broadly, the action signals that the administration is willing to use program-level suspensions, not just visa policy changes, as an enforcement tool against foreign hiring in tech.
What’s next
Key questions remain open: the scope and subject of the federal investigations Sonderling cited, how long the suspensions will run, whether pending applications are affected, and whether the companies will challenge the action. Watch for responses from Microsoft, Adobe and the outsourcing firms, further detail from the Labor Department, and any expansion of the suspension list to additional employers.
Sources
CNBC Top News — U.S. suspends Microsoft, Adobe from green card labor program in foreign worker crackdown
Labor Secretary Keith Sonderling cited 'multiple active federal investigations' around the companies' involvement in the PERM program.
TechCrunch — US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers
Other firms suspended include Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro, extending the crackdown across the IT outsourcing industry.
DW — US suspends Microsoft, Adobe from filing for green cards
The Trump administration cut off major tech firms from filing for green cards for their foreign workers, with VP Vance alleging abuse of the H-1B pipeline.
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