US suspends Microsoft from PERM permanent residency program

The United States government is suspending Microsoft and seven other technology and consulting companies from the PERM permanent residency labor certification program. US Vice President JD Vance and Labor Secretary Keith Sonderling announced the measure on October 8, 2026.

Vice President JD Vance stated that Microsoft held 6,000 approved H-1B visas and had filed 3,682 PERM applications. According to officials, 1,000 of those applications matched positions held by laid-off US workers.

The administration alleged that Microsoft hired 1.5 foreign workers for each laid-off domestic employee. Authorities also claimed foreign workers received wages $20,000 below those paid to comparable US workers.

In addition to the corporate actions, the administration targeted nine universities for related investigations into visas and wages.