In a decisive move to safeguard American employment, the Trump administration announced Thursday that Microsoft, Adobe and several IT outsourcing firms will be barred indefinitely from the Labor Department’s PERM program, which grants permanent residency to foreign workers hired on H‑1B visas. Vice President JD Vance, who leads the anti‑fraud task force, said the companies were found to have misused the system to replace U.S. workers with cheaper labor.
Administration’s rationale
Vance explained that the investigation revealed Microsoft laid off roughly 6,000 American employees last year while simultaneously employing about 6,300 non‑citizens on H‑1B visas. “The H‑1B visa is how the people get into the United States in the first place, and then a PERM program is how those employees stay,” Vance said. “There has been no company in the United States, unfortunately, that has abused the system more than Microsoft.”
The administration argues that the PERM program is intended for workers with “hyper‑specialized” skill sets that cannot be readily found in the United States. By using the program to replace skilled American employees with similarly qualified immigrants who can be paid less, the companies allegedly violated both the spirit and the letter of the law.
Policy impact and next steps
While the suspension is indefinite, Vance emphasized that the goal is not to punish the companies but to encourage them to put American workers first. “Our message to Microsoft is not that we want to harm your company, it’s that we want your company to thrive, but we want it to thrive by employing and empowering your fellow Americans,” he said. “We will continue to support Microsoft and have a great relationship with Microsoft, but we are denying them the ability to apply for these permanent residencies until they demonstrate a serious commitment to American workers.”
The Labor Department has not outlined a specific path for the companies to regain access to the PERM process, but Vance indicated that a change in behavior and a demonstrable effort to hire and retain U.S. workers will be required.
Broader enforcement effort
This action is part of a broader enforcement push ahead of the upcoming midterm elections, aimed at curbing alleged fraud in immigration‑related employment programs. In addition to the tech firms, the administration announced investigations into several prestigious universities—Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, MIT and Arizona State University—over alleged abuse of the J‑1 visa program, which allows schools to bring in foreign scholars and teachers.
Vance warned that schools may be using the J‑1 program to undercut American wages by hiring foreign nationals for positions that should be filled by U.S. citizens.
Recognition amid enforcement
Despite the crackdown, President Trump is scheduled to award Microsoft CEO Satya Nadella the National Medal of Technology and Innovation later Thursday, recognizing the company’s contributions to America’s economic, environmental and social well‑being. The administration framed the award as a testament to the importance of innovation when it is paired with a commitment to American workers.
Vance reiterated that the administration’s stance is consistent: “We want companies to thrive, but we want that thriving to be built on the foundation of American labor and American families.”
The PERM suspensions send a clear signal to all employers that the Trump administration will enforce immigration laws rigorously to protect American jobs and ensure that federal benefits are reserved for citizens and legal residents who contribute to the nation’s prosperity.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
