US Suspends Microsoft Green Card Path Over H-1B Abuse Claims

Vice President JD Vance declared on Thursday that the US administration has halted the issuance of permanent residency permits to Microsoft staff in the United States. The move stems from allegations that the technology corporation abused the immigration system, a charge the company explicitly rejects.

The H-1B Visa Controversy

The decision targets the H-1B visa program, which grants work authorization to skilled laborers and issued 85,000 such permits last year. Under the new directive, the Donald Trump administration excludes Microsoft from a mechanism that previously allowed eligible holders to convert their temporary visas into permanent resident status, commonly known as the "Green Card."

Speaking at a press conference, Vance stated that no other US firm had exploited this regulatory framework more severely than Microsoft. He cited specific figures from 2025, noting that the Redmond-based company laid off 6,000 American workers while simultaneously securing 6,300 H-1B visas and approximately 3,000 permanent residency approvals for its personnel.

"This is a disastrous system we have allowed to persist for far too long," Vance said, adding that his administration intends to terminate it. While acknowledging Microsoft as a "great American company," he insisted it must prioritize hiring domestic labor.

Corporate Response and Denials

Microsoft countered these claims by stating that 80 percent of the H-1B visa applications filed during fiscal year 2026—which concludes in late June—were submitted on behalf of individuals already employed by the firm.

The suspension extends beyond Microsoft to include several other major entities. The administration has also paused the use of this conversion pathway for Adobe, French consulting firm Capgemini, and various technology companies including Cognizant, Tata, Infosys, HCL, and Wipro.

Capgemini did not immediately respond to inquiries regarding the matter. Vance further revealed that numerous prominent US universities are currently under investigation for suspected fraud related to visa sponsorship processes.

Administration's Anti-Fraud Initiative

This action follows the establishment of a task force by President Trump in March, specifically designed to identify fraud in the allocation and usage of federal government funds and services. Vice President Vance was appointed to lead this oversight body.