Microsoft Faces Green Card Filing Suspension Amid Visa Program Scrutiny

The Biden administration has suspended Microsoft, Adobe, and six IT firms from a Department of Labor program used to sponsor H-1B visa holders for green cards, alleging potential fraud and prioritizing American jobs. Vice President JD Vance announced the suspension Thursday, stating that Microsoft laid off 6,000 American workers while simultaneously sponsoring 6,300 H-1B visas, equivalent to 1.5 foreign workers for every American worker laid off. The Labor Department requires companies to prove that hiring foreign workers won’t negatively impact American jobs or wages before sponsoring them for green cards. The suspension extends to Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. Microsoft disputes the characterization of its hiring practices, stating that approximately 80% of its 6,000 H-1B visa applications in the last fiscal year were for extensions or status changes. Several tech workers have reported difficulty finding jobs after layoffs, alleging companies are replacing American employees with cheaper foreign labor. Jonathan, a cybersecurity professional, applied for over 200 tech jobs after being laid off in November 2024 and received no offers. John, a former IT worker, said his company phased out roughly 350 American IT staffers over a decade, having them train their foreign replacements as a condition of severance. Joseph Ibrahim, an unemployed tech worker, expressed disillusionment with the promise of coding jobs, noting the outsourcing of those positions as well.

Where they differ

• Right-leaning Daily Caller emphasized the number of American workers laid off by Microsoft alongside the number of H-1B visas sponsored, framing it as a replacement of American workers.
• Lean-left NDTV focused on Microsoft’s defense of its H-1B visa usage, highlighting the company’s claim that the vast majority of its US employees are American.

What is not yet known

• The specific details of the alleged fraud prompting the suspension remain unclear.
• The duration of the suspension for Microsoft and the other firms is not specified.

Background

• The Trump administration previously suspended Microsoft, Adobe, and other IT firms from the same visa program in October 2026, alleging similar fraud [Fact Refinery, 2026-10-08].
• The H-1B visa program is intended for high-skilled jobs that are difficult to fill with American workers, but has faced criticism for potentially undercutting domestic labor [Fact Refinery, 2026-10-08].
• In April 2026, the U.S. economy added 115,000 jobs and the unemployment rate remained at 4.3% [Fact Refinery, 2026-05-08].

Our reading

Our reading is that the Biden administration, mirroring actions taken by the previous administration, is signaling a renewed focus on protecting American jobs in the tech sector. The parallel between the current suspension and the one issued in October 2026 suggests a consistent, if not escalating, concern regarding the potential for abuse within the H-1B visa program. The framing by some outlets of the situation as a replacement of American workers with cheaper foreign labor indicates a strong narrative around the issue.

What to watch

• The Department of Labor’s release of specific details regarding the alleged fraud, which would substantiate the claims made by Vice President Vance [Department of Labor website].
• The duration of the suspension for Microsoft and the other firms, indicating the severity of the administration’s concerns [Department of Labor website].
• Microsoft’s official response and any legal challenges it may pursue to the suspension [Microsoft investor relations].

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