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The US government has suspended several tech companies, including Microsoft and Adobe, from the PERM program. Vice President JD Vance cited fraud in the H-1B visa system as the reason for the action.
The U.S. government has suspended multiple technology companies from using the Program Electronic Review Management (PERM) system. The move, announced on Thursday, October 8, 2026, follows accusations of widespread abuse of the foreign worker visa system. Vice President JD Vance stated that the tech industry has engaged in "rampant fraud" within the H-1B visa program.
Labor Secretary Keith Sonderling confirmed that the suspension applies to several major firms. According to Sonderling, the companies whose permanent labor certification programs have been suspended include:
The PERM program allows U.S. employers to sponsor foreign workers for permanent residency. The suspension prevents these companies from using H-1B visa holders to apply for permanent residency, which may disrupt workforce planning.
Vice President JD Vance addressed the issue at a briefing in Washington, specifically targeting Microsoft. "Unfortunately, no company in the United States has abused this system more than Microsoft," Vance said. He emphasized that the administration's goal is not to harm the company but to encourage it to hire American workers. "Our message to Microsoft is not to harm your company, but rather to help it grow—by hiring and empowering American workers," Vance stated.
Sonderling added that multiple federal investigations into the matter are currently underway. The administration has accused these firms of replacing laid-off American workers with foreign workers through fraud in job advertising and misuse of the H-1B program.
Stock prices for the affected companies showed mixed reactions following the announcement. As of the reporting time, Microsoft (MSFT) shares rose 0.21%, while Adobe (ADBE) increased 0.31%. However, shares of other affected firms declined: Cognizant Technology Solutions (CTSH) fell 0.54%, Infosys (INFY) dropped 2.51%, and Wipro (WIT) decreased 3.59%.
This suspension marks a significant escalation in the Trump administration's efforts to crack down on legal and illegal immigration channels. By restricting access to the PERM program, the government is directly impacting the ability of major tech firms to retain foreign talent through permanent residency pathways. The ongoing federal investigations suggest that further regulatory actions or penalties could follow, potentially affecting future hiring strategies and labor costs across the technology sector.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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