The U.S. Department of Labor has suspended Microsoft and Adobe from its Permanent Labor Certification program as part of a broader crackdown on foreign worker policies, according to Labor Secretary Keith Sonderling. This move also affects several large Indian IT firms, including Cognizant, Infosys, Capgemini, Tata, Wipro, and HCL, effectively halting their ability to submit new applications under the program. The suspension for Microsoft and Adobe stems from multiple ongoing federal investigations, while the administration highlights the impact of these companies’ extensive use of foreign labor on American jobs.

Vice President JD Vance specifically criticized Microsoft, referencing its 6,000 layoffs in 2025, and accused the company of replacing those jobs with H-1B visa holders. Despite this condemnation, Vance noted the administration’s desire to maintain a productive relationship with Microsoft but emphasized that the company must demonstrate a stronger commitment to prioritizing American workers before regaining access to permanent residency applications. Microsoft responded by asserting that the majority of its U.S. workforce is American, and that most H-1B applications submitted are for extensions or status changes of existing employees.

The announcement comes alongside President Donald Trump’s planned presentation of the National Medal of Science to several technology leaders, including Microsoft CEO Satya Nadella, Nvidia CEO Jensen Huang, SpaceX CEO Elon Musk, and Advanced Micro Devices CEO Lisa Su, all of whom immigrated to the U.S. Vance distinguished between immigrant entrepreneurs like Musk and Su, who are widely supported for their contributions, and the broader use of H-1B workers criticized as disadvantaging American employees.

Tech giants such as Microsoft, Google, Amazon, and Apple have historically been major sponsors of H-1B visas. For 2026, Amazon submitted the most petitions, followed by Cognizant and EY, with Microsoft close behind. Microsoft defended its hiring standards, claiming high wages and rigorous compliance for H-1B workers. Adobe has yet to comment on the suspension, as the Labor Department continues to investigate labor practices involving these companies amid ongoing political and policy pressures ahead of the November midterms.