Trump administration blocks Microsoft from green card program over foreign worker claims

The Trump administration said it would bar Microsoft and other companies from a program that lets foreign workers seek green cards. Vice President JD Vance accused Microsoft of using the H-1B system to replace American workers with what he described as foreign workers bound to their employers. The announcement also criticized universities over J-1 visas and IT outsourcing firms.
The administration said it would suspend Microsoft and other unnamed companies from a process that lets foreign employees pursue permanent residency. Vice President JD Vance tied the move to H-1B use, arguing Microsoft had displaced American staff. Officials also criticized universities' J-1 exchange programs and IT outsourcing companies.
Microsoft said most of its roughly 6,000 recent H-1B filings concerned current staff seeking extensions or status changes, not new hires. It said new-employee petitions involved people already legally in the U.S. and represented about 1% of its U.S. workforce. A former USCIS adviser disputed Vance's rationale, noting green cards reduce employer dependence.
The suspension could affect Microsoft's foreign employees seeking permanent residency, their families, and U.S. hiring teams, while universities and outsourcing firms may face added scrutiny. It may heighten uncertainty for skilled visa holders and employers relying on global talent, potentially influencing recruitment and retention. It could also intensify debate over immigration programs' role in the labor market, with consequences for workers, students, and communities tied to tech and higher education.