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Politics · October 9, 2026

Immigration split screen: Microsoft gets a crackdown and a medal

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Neutral Summary

The Trump administration, led by Vice President JD Vance and the Department of Labor, has suspended Microsoft, Adobe, and several IT outsourcing firms from the Permanent Labor Certification (PERM) program. The action follows allegations that these companies abused the H-1B visa system to replace laid-off American workers with lower-paid foreign labor. The administration also announced investigations into nine major universities for potential J-1 visa fraud. Microsoft and other affected entities have disputed the allegations, stating that the majority of their visa applications are for existing employees and that compensation remains competitive with American standards.

The Trump administration, led by Vice President JD Vance and the Department of Labor, has suspended Microsoft, Adobe, and several IT outsourcing firms from the Permanent Labor Certification (PERM) program. The action follows allegations that these companies abused the H-1B visa system to replace laid-off American workers with lower-paid foreign labor. The administration also announced investigations into nine major universities for potential J-1 visa fraud. Microsoft and other affected entities have disputed the allegations, stating that the majority of their visa applications are for existing employees and that compensation remains competitive with American standards.