US Administration Halts Permanent Residency for Microsoft Employees

The U.S. administration has suspended Microsoft employees’ eligibility for a mechanism that allows the conversion of H-1B work visas, which are granted to skilled workers, into permanent residency permits, amid allegations that the company has misused the skilled labor recruitment system to the detriment of American workers.

U.S. Vice President J.D. Vance told reporters, as reported by Agence France-Presse, “No company in the United States has abused this system more than Microsoft,” noting that the company, headquartered in Redmond, Washington, laid off 6,000 American employees last year while obtaining thousands of work visas and permanent residency permits for foreign staff. He argued that this approach reflects a flaw in the current system and calls for reform and an end to the practice.

Under the decision, the Trump administration has excluded Microsoft from a program that previously allowed it, under certain conditions, to convert H-1B visas into permanent residency permits, commonly known as “green cards.”

The decision did not target Microsoft alone; it also included several technology and consulting firms, such as Adobe and Capgemini, as well as major Indian companies including Tata, Infosys, Wipro, HCL, and Cognizant.

The measures relate to the H-1B visa program, designed for highly skilled workers, which is widely used in the U.S. technology sector to attract foreign talent. Last year, 85,000 individuals obtained H-1B visas.

For its part, Microsoft has rejected the allegations, asserting that most of the H-1B visa applications submitted during fiscal year 2026 were for employees already working at the company.

The decision comes as part of a broader campaign launched by President Donald Trump’s administration to review immigration programs linked to the labor market. Vice President Vance is leading a task force tasked with investigating allegations of fraud and misuse of federal government funds and services.

Vice President Vance also noted that several major U.S. universities are currently under investigation regarding visa applications and foreign recruitment programs.