Microsoft has been suspended from applying for permanent residency for workers employed through a US visa program for high-skilled workers, US Vice-President JD Vance announced on Thursday. Mr Vance accused the tech company of abusing the H-1B system, which allows visa holders to work while applying for a green card.
“Our message to Microsoft is, you’re a great American company, but you’ve got to hire great American workers,” Vance stated at a press conference. He added, “You cannot lay off American workers and then replace them with foreign indentured servants.”
The US Labor Department confirmed that Adobe had been similarly suspended. Keith Sonderling, the US Labor Secretary, said in a statement that the department “will not accept any new or process any pending permanent labor certification applications involving these companies.”
In 2026, Microsoft applied for H-1B visas for nearly 3,700 workers, making it the fifth largest employer of such workers. Tech companies are the largest employers of H-1B workers overall, with Amazon topping the list this year with over 9,300 petitions. Mr Sonderling noted that since 2009, Microsoft and Adobe had received approximately 230,000 H-1B visa approvals and 100,000 “permanent labor certifications,” a step towards an employment-based green card.
Mr Vance claimed that workers hired through the H-1B program earn an average of $20,000 less than US workers in the same positions. He argued that corporations use this system to undercut the wages of American workers.
Immigration advocacy groups, such as the National Immigration Forum, have called for reforms to the H-1B program, though for different reasons. These groups argue that attracting specialized global talent benefits the US economy, stating in a September 2026 blogpost that policies making the US less attractive could strengthen global competitors.