PERM Program Suspensions
The administration announced that major technology corporations Microsoft and Adobe are barred from the PERM program, which serves as a vital pathway for H-1B visa holders to transition to permanent residency. Several major IT outsourcing providers, including Cognizant, Infosys, Tata Consultancy, Wipro, HCL, and Capgemini, also face suspension.
Representatives for the affected companies have not yet issued statements regarding the decision.
Federal Scrutiny and Allegations
Federal authorities have halted processing for all new and pending Permanent Labor Certification applications associated with these firms. During a press briefing, officials singled out Microsoft, criticizing the volume of foreign labor utilized alongside domestic workforce reductions.
According to administration figures, Microsoft experienced simultaneous domestic layoffs and high volumes of H-1B approvals and PERM filings, with numerous positions allegedly overlapping with roles affected by layoffs. Labor Secretary Keith Sonderling confirmed that the suspensions for both Microsoft and Adobe stem from multiple active federal investigations.
Broader Crackdown on Visa Programs
The enforcement actions coincide with an intensified national inquiry initiated by the Department of Labor into potential fraud, wage discrepancies, and recruitment abuses within H-1B and PERM channels.
An executive order signed previously aims to restrict systemic misuse of the work visa framework, while lottery rules have shifted to prioritize higher-skilled and higher-compensated applicants.
Data compiled by policy foundations indicates that major technology enterprises including Amazon, Meta, Microsoft, and Google historically account for significant shares of approved H-1B visas annually.
