US Suspends Microsoft’s Green Card Sponsorship Programme Amid H-1B Probe

The US government has suspended Microsoft’s access to the Permanent Labor Certification Program (PERM), halting new applications and processing of pending cases used by employers sponsoring foreign workers for employment-based Green Cards. The move follows a federal investigation into alleged abuse of skilled-worker visa programmes, accusations that Microsoft has disputed.

Vice President JD Vance and Labour Secretary Keith Sonderling announced the suspension in Washington on October 8, 2026. Officials have not announced a timeline for lifting the restrictions.

Why the US suspended Microsoft’s Green Card sponsorship

Vance, who chairs an anti-fraud task force investigating the programme, accused Microsoft of relying heavily on foreign workers while cutting American jobs.

He claimed the company laid off around 6,000 US workers last year while employing approximately 6,300 H-1B visa holders and obtaining nearly 3,000 Green Cards.

Vance argued that PERM should be used to fill positions requiring specialised skills that employers cannot readily find in the US. Officials alleged that the programme had been misused to replace American workers with lower-cost foreign employees.

Sonderling said the suspension was linked to multiple active federal investigations.

The restrictions affect a significant number of immigration cases because Microsoft is among the largest filers of PERM applications, according to the report.

Microsoft says most H-1B petitions were for existing employees

Microsoft rejected the implication that its visa filings primarily involved recruiting new foreign workers.

In a blog post, the company said approximately 80% of the roughly 6,000 H-1B petitions it filed in the last fiscal year were intended to extend or change the status of existing employees. The remaining petitions involved people already living legally in the US, it said.

“Microsoft only files H-1B petitions for those who meet the rigorous standards of this visa category,” the company said.

Microsoft also maintained that its H-1B employees receive competitive wages and are paid comparably to other workers performing similar roles. It said these employees account for only around 1% of its US workforce.

Data cited from Levels.fyi placed Microsoft fourth among H-1B sponsors for the year, with 21,706 petitions and a median base salary of $180,710. Microsoft also announced in July that it would cut 4,800 jobs, or about 2.1% of its global workforce.

No timeline for lifting the restrictions

Vance did not specify what Microsoft must do to regain access to the PERM programme. He said the suspension would remain in place for as long as necessary.

The announcement came hours before US President Donald Trump was scheduled to present Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation.

The action also comes amid a broader US crackdown on skilled-worker immigration. The administration introduced a one-time $100,000 fee on new H-1B petitions in September 2025, according to the report.

What the suspension means for foreign workers

The immediate impact is on Microsoft employees whose Green Card applications depend on the PERM process. New applications will not be accepted, while pending cases will not be processed during the suspension.

PERM applications already involved lengthy waits, averaging 336 days in August, according to the report. The suspension could add further uncertainty for employees seeking permanent residency through their jobs.

The dispute now places Microsoft’s immigration practices under greater scrutiny as US officials intensify enforcement of skilled-worker visa rules. The company’s response centres on its claim that most H-1B filings support existing employees rather than new recruitment.

Editorial note: Allegations of programme abuse are claims made by US officials and should not be presented as established findings. Microsoft’s response reflects the company’s position. The status of the investigation and any subsequent government action should be verified before publication.

External sources to consult: US Department of Labor for PERM rules and official announcements; Microsoft’s official blog for its response; USCIS for H-1B and employment-based immigration rules; Levels.fyi for the cited salary and petition data.

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