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White House blocks Microsoft from foreign worker hiring program

US Vice President JD Vance announced on Thursday the suspension of PERM applications for Microsoft and seven other tech firms over H1b visa fraud allegations.

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Inewgen
09 Oct 2026Source: BBC Business3 min read (0 views)
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White House blocks Microsoft from foreign worker hiring program

Stock photo for illustration only, not from the actual event

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  • The White House suspends PERM applications for Microsoft and seven other tech firms.
  • JD Vance accuses firms of abusing the H1b visa program to replace local workers.
  • Microsoft counters that 80% of recent visa filings were for existing employees.
  • The ban coincides with Satya Nadella receiving a tech medal from President Trump.

The White House and the US government have halted the processing of any new or pending Permanent Labor Certification Program (PERM) applications submitted by Microsoft and seven other major technology firms.

US Vice President JD Vance accused Microsoft and its industry peers on Thursday of committing fraud through the utilization of the H1b skilled worker visa program and the associated process that allows overseas workers to secure permanent residency in the United States.

Vance claimed that Microsoft, recognized as one of the most valuable corporations in the US, was effectively substituting American personnel with foreign contract workers. He cited figures indicating that Microsoft had laid off approximately 6,000 employees while simultaneously submitting 6,800 H1b visa applications during the exact same timeframe.

Washington DC government building press conference

Stock photo for illustration only, not from the actual event

$155,000Median salary for an H1b worker at Microsoft
85,000Annual cap on H1b visas in the United States

In response, a Microsoft spokeswoman argued that the vast majority of the company's US workforce consists of American citizens. She noted that 80% of the H1b visa filings submitted over the previous fiscal year pertained to individuals already employed by Microsoft rather than new recruits. The company also maintains that compensation for these international hires matches local pay standards, with immigration processing firm Ellis reporting a median salary of $155,000 for Microsoft H1b workers.

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โฆษณา

"No company in the US has abused this system more than Microsoft"

JD Vance

Aside from Microsoft, Vance targeted seven other companies facing the same PERM application freeze, including Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Secretary of Labor Keith Sonderling formally confirmed the government's stance during the same conference.

The H1b visa and PERM framework have served for decades as primary legal conduits for American technology enterprises to source specialized global talent unavailable domestically. Applying targeted administrative blocks specifically to these prominent firms marks a significant escalation in how the federal administration regulates corporate labor practices.

This policy clash unfolded on the same day Microsoft CEO Satya Nadella visited the White House to accept a national technology innovation medal from President Donald Trump alongside other prominent industry figures such as Elon Musk, Jensen Huang, Lisa Su, Sergey Brin, and Michael Dell, before Vance's regulatory announcement later that day.

Source: BBC Business

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