U.S. administration suspends green-card sponsorship for eight tech firms, citing reliance on foreign workers
The Labor Department halted PERM green-card sponsorship for eight technology companies after data showed extensive use of H-1B visas, while a separate investigation targets alleged J-1 visa fraud at several universities.
The Labor Department announced Thursday that it is suspending the PERM program for green-card sponsorship at eight technology firms, including Microsoft, after data indicated a heavy reliance on H-1B visa holders. Vice President JD Vance said Microsoft replaced the 6,000 employees it laid off in 2025 with workers on H-1B visas.
The suspension applies only to the PERM process, which grants permanent residency, and does not affect temporary H-1B permits. U.S. Citizenship and Immigration Services data shows that Amazon and Meta were the largest sponsors of H-1B visas, but they were not included in the suspension.
At the same briefing, Labor Department Inspector General Anthony D'Esposito disclosed an investigation into possible J-1 visa fraud involving nine major American universities. The administration said the actions aim to ensure that visa programs do not disadvantage U.S. workers.