Vice President JD Vance announced on Thursday that Microsoft has been suspended from filing permanent residency applications for workers employed through the H-1B visa program, which allows high-skilled foreign workers to remain in the United States while pursuing green cards. The US Labor Department also announced a similar suspension for Adobe. According to Labor Secretary Keith Sonderling, the government will not accept new or process pending permanent labor certification applications for either company.
Vance characterized the suspension as a response to what he described as systemic abuse of the H-1B visa system. He stated that Microsoft laid off American workers and subsequently replaced them with foreign workers at reduced compensation levels. Vance asserted that H-1B workers earn approximately $20,000 less on average than their American counterparts in equivalent positions, and claimed that for every American worker Microsoft laid off, the company hired one and a half foreign workers through the program.
Microsoft disputed the characterization, stating that the majority of its workforce consists of American citizens and that 80% of its H-1B applications in the preceding year were for extensions or status changes for existing employees. The company also emphasized that it offers compensation among the highest in the tech sector and that it pays H-1B employees at parity with other workers performing comparable duties. Microsoft applied for H-1B visas for nearly 3,700 workers in 2026, ranking it fifth among employers utilizing the program.
The Trump administration has made scrutinizing the H-1B program a policy priority, contending it facilitates wage suppression and displaces American workers. Immigration advocacy organizations, however, generally oppose restrictive measures on the program. Groups such as the National Immigration Forum argue that access to specialized talent from around the world strengthens the American economy and research sectors, and that policies limiting such access could disadvantage the United States relative to international competitors seeking skilled workers.
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