Trump Administration Excludes Microsoft from PERM Programme

The Trump administration excluded Microsoft and several other technology companies from the PERM programme (Permanent Residency) of the Department of Labor on 8 October 2026. The programme enables employers to sponsor foreign employees for permanent residency authorisation (Green Card). The suspension marks an expansion of measures against alleged visa abuse.

Vice President Vance Levels Serious Accusations

Vice President JD Vance, who leads a task force on fraud prevention, accuses Microsoft of systematically abusing the visa system. According to the government, Microsoft laid off approximately 6,000 American employees in the past year, while simultaneously employing 6,300 foreign nationals with H-1B visas. In the last fiscal year, Microsoft filed approximately 6,000 H-1B visa applications.

Vance stated according to CNN: "Unfortunately, there has been no company in the United States that has abused the system more than Microsoft." The government alleges that the company made false statements in applications for permanent residency authorisation. Microsoft claimed that positions required "highly specialised" skills unavailable in the USA. In fact, the company allegedly replaced qualified American workers with similarly qualified immigrants paid at lower wages. Vance characterised this as fraud: "The fraud consists of them making statements in applying for this programme that are fundamentally illegitimate and therefore ultimately illegal."

Microsoft Rejects Allegations

Microsoft disputes the government's account. The company stated that 80 per cent of the approximately 6,000 H-1B visa applications in the last fiscal year served to extend or change the status of existing employees – not to hire new workers. The remaining applications affected persons who were already legally present in the USA.

"We pay our employees some of the highest compensation in the technology sector, and our wages are among the highest of all H-1B applications," Microsoft stated. The company further emphasised: "We pay our H-1B employees the same as all other employees performing comparable work."

Other Companies Affected

In addition to Microsoft, the suspension also affected Adobe and several IT outsourcing firms. The government also extended its controls to J-1 visas for student exchange programmes. The H-1B visa programme is frequently used by qualified foreign professionals seeking permanent residency authorisation in the USA. As Vance explained, the H-1B visa enables entry to the United States, while the PERM programme regulates permanent residence.

Awkward Timing

The announcement of the suspension came on the same day President Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation. The award is considered the highest national honour for technological achievement and recognises outstanding contributions to the economic, environmental and social well-being of the USA. Vance downplayed the temporal coincidence of the fraud allegations with the award ceremony.

Significance for the Technology Sector

Suspension from the PERM programme affects the ability of large technology companies to retain international professionals long-term. For companies like Microsoft that rely on global talent pools, this could complicate workforce planning. The measure fits into a series of restrictive immigration policies by the Trump administration, which also subjects other visa programmes to tighter controls.

Investors should monitor further developments. Should the restrictions persist or be extended to additional companies, this could impact recruitment strategies throughout the technology sector. The long-term effects on business models and competitiveness will depend on how quickly affected companies can adapt to changing conditions.