The U.S. government has suspended Microsoft, Adobe, and several other major IT firms from a program that allows skilled foreign workers to obtain permanent residency, citing alleged fraud and a directive to prioritize hiring American workers. The action impacts companies including Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.
"We will not accept any new or process any pending permanent labor certification applications involving these companies," Secretary of Labor Keith Sonderling announced Thursday. Vice President JD Vance stated, "Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers."
The PERM (Program Electronic Review Management) process is a critical step where employers must obtain certification from the Department of Labor confirming that no qualified, willing, or available U.S. worker exists for a specific job. This certification is typically required before companies can file petitions for most employment-based green cards.
In addition to the IT firms, the administration is also investigating nine universities, including Harvard, Yale, and Stanford, for allegedly recruiting international students in ways that could undercut American wages. Labor Inspector General Anthony D’Esposito indicated that subpoenas have already been issued as part of this investigation. "We will investigate whether foreign influence, improper financial relationships, or visa abuse are compromising federally funded research," D’Esposito said. "If an American university is breaking the law to save $1 while exposing American research to a foreign adversary, that is not academic excellence. It’s institutional betrayal."