The Trump administration has suspended Microsoft from a green card sponsorship program, citing allegations of fraud and the displacement of American workers.
The timing was stark: hours before President Donald Trump was set to honor Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation, the administration moved to bar the company from a federal program used to sponsor foreign workers for green cards.
Vice President JD Vance announced the suspension on Thursday, accusing the Redmond, Washington-based tech giant of widespread fraud. At the heart of the administration’s case is a requirement that companies prove a lack of qualified American candidates before seeking green cards for H-1B visa holders. Vance alleged that Microsoft has been manipulating this process by posting job advertisements in obscure. small-town newspapers to manufacture a lack of local interest.
“They will use that lack of response to then go and replace American workers with what is effectively foreign indentured servants,” Vance said during a White House news conference. “There has been no company in the United States, unfortunately, that has used this system more than Microsoft.”
Vance provided figures to underscore the administration’s position. stating that last year. Microsoft laid off 6. 000 American workers while simultaneously obtaining 6. 300 H-1B visas and nearly 3. 000 green cards. By his calculation, for every American worker released, the company brought in approximately 1.5 foreign workers. He argued that these employees are vulnerable to exploitation because their legal status is tied to their employment and they often earn less than domestic counterparts.
The suspension is part of a broader crackdown on visa programs frequently utilized by the technology sector. H-1B visas. intended for high-skilled roles where domestic labor is scarce. have become a focal point for the administration’s push to prioritize American hiring. Roughly three-quarters of these approvals currently go to workers from India.
Beyond the action against Microsoft, the administration is widening its reach into higher education. On Wednesday. the Department of Homeland Security proposed a $70. 000 fee for every student participating in the Optional Practical Training (OPT) program. which allows international students to work in fields related to their studies. Additionally. Vance identified nine universities he said warrant investigation for potential abuse of J-1 exchange visitor visas. alleging the schools utilize the program at disproportionately high rates compared to their peers.
Microsoft did not immediately provide a response to the suspension or the allegations of fraud. As the administration continues these investigations into both corporate hiring and academic visa use, the path forward for tech companies relying on these channels remains uncertain.
Microsoft Trump administration green card H-1B visa JD Vance immigration policy tech labor visa fraud