Microsoft suspended from green card program hours after CEO honored

The Trump administration suspended Microsoft from the Permanent Employment Program on Thursday, a move that restricts the company's ability to sponsor employees for green cards. Hours later, President Donald Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation at the White House. The sequence of events highlights a tension within the administration's approach to Big Tech, which champions technological leadership while simultaneously enforcing stricter immigration policies that constrain hiring of foreign-born workers.

The suspension is part of a broader action targeting Adobe and six IT services firms. The Department of Labor accused these companies of hiring foreign workers and paying them less than U.S. workers. The Perm program is typically the first major government approval step for employers sponsoring H-1B holders for employment-based green cards. Under the new rules, the Department of Labor will not accept new applications from the eight named companies or process those already in the pipeline. This affects long-time employees in a process that can already take years to complete.

Vice President JD Vance addressed the apparent contradiction at a press conference earlier in the day. He stated that the administration wants Microsoft to thrive by employing Americans rather than replacing them. Vance claimed that Microsoft laid off 6,000 American workers while replacing them with 6,300 H-1B visa holders, though he did not provide a timeline for these events. He indicated that the suspension would last as long as needed and that the administration has tools to keep it indefinite.

Microsoft responded in a statement saying that 80% of its applications in the last fiscal year were to extend or change the status of existing employees rather than hire new people. The company asserted that it pays among the highest compensation in the tech sector for its H-1B filings. Microsoft did not directly address the specifics of the Perm program suspension in its statement.

At the same White House event, Trump honored other tech leaders with the National Medal of Science, including Elon Musk, Nvidia CEO Jensen Huang, Google co-founder Sergey Brin, and AMD CEO Lisa Su. All are immigrants to the United States. Trump referred to the honorees as national treasures.

Market reactions were mixed following the news. Microsoft stock fell about 1%, while Adobe shares rose nearly 4%. Investors appeared largely unflustered by the development.

The suspension comes amid significant shifts in H-1B policy. In September 2025, Commerce Secretary Howard Lutnick announced a $100,000 fee on H-1B visas. According to a court filing, only 85 people had paid this fee roughly five months later. Numerous federal judges have since struck down the fee.

Legal experts warn that the current move could discourage companies from sponsoring workers for visas and permanent residency. Patricia Gannon, chair of the Immigration and Naturalization Group at Greenspoon Marder, noted that the Perm program is a fundamental way for workers to obtain green cards. Hiba Anver, an attorney at Erickson Immigration Group, expressed concern that foreign workers will become more hesitant to accept positions in the U.S., potentially shrinking the national talent pool.