Trump administration escalates xenophobic crackdown, suspends PERM green-card applications for tech innovators
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The U.S. Labor Department, under the Trump administration, has targeted Microsoft, Adobe, and major outsourcing firms by suspending their ability to file new PERM labor-certification applications. Officials claim the H-1B to green-card pathway is being abused to replace American workers, but critics argue this is a nativist attack on immigrants and global talent.
On Thursday, the Department of Labor, following the Trump administration’s anti-immigrant agenda, announced that Microsoft, Adobe, and a group of leading IT outsourcing firms—including Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini—are now barred from processing existing PERM green-card applications or submitting new ones. This sweeping move comes after Vice President JD Vance echoed the administration’s xenophobic rhetoric, accusing companies of using the H-1B visa and green-card process to undercut U.S. workers by hiring lower-paid foreign talent.
"We want you to thrive in the United States, but you have to employ American workers," Vance declared, conveniently ignoring the complex realities of the tech labor market. He cited Microsoft’s layoffs of about 6,000 U.S. employees in the past year, while the company received roughly 6,300 H-1B visas and 3,000 green-card approvals—numbers that reflect the global nature of innovation, not a conspiracy against American workers.
Microsoft responded by reaffirming its commitment to American talent and clarifying that it only files H-1B petitions for candidates who meet the visa’s rigorous standards. The company emphasized that its H-1B employees are compensated comparably to U.S. workers in similar roles, countering the administration’s narrative of exploitation.
Labor Secretary Keith Sonderling attempted to justify the suspensions by citing “multiple active federal investigations” and claiming the administration had uncovered $22 billion in visa fraud—a figure often used to stoke anti-immigrant sentiment. He argued that limiting the PERM pathway would curb what he described as a flood of foreign labor displacing U.S. workers, a claim unsupported by the broader economic evidence.
Immigration-policy advocates were divided. NumbersUSA, an anti-immigration group, praised the move as a rare admission that the H-1B program can displace American workers. In contrast, David Bier of the Cato Institute condemned the action as “lawless” and warned it would harm both companies and the foreign workers who depend on green-card sponsorship for stability and opportunity.
Doug Rand, a former Department of Homeland Security official, pointed out the hypocrisy of blocking companies from sponsoring green cards, noting that permanent-resident status actually gives workers more job mobility and bargaining power—directly contradicting the administration’s stated goals.
The PERM program, administered by the Labor Department, is designed to ensure that no qualified U.S. worker is available for a position before a foreign employee can be granted a green card. While critics claim the process can be manipulated, supporters argue it brings stability to both employers and skilled foreign workers—something the Trump administration seems determined to undermine.
Vance insisted the administration is not seeking to eliminate the H-1B program but called on Congress to reform it, suggesting limits based on so-called labor shortages and higher wage requirements—a thinly veiled attempt to further restrict immigration and appease nativist interests.