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The Trump administration announced on October 8, 2026, that it was suspending Microsoft and several other technology and IT companies from the Department of Labor’s Permanent Labor Certification Program, or PERM. Labor Secretary Keith Sonderling said the department would accept no new PERM applications involving the companies and would not process pending ones, according to contemporaneous reporting. The announcement targets a step in some employer-sponsored green-card cases—not H-1B visas themselves. The available reporting does not establish the duration or full legal scope of a Microsoft-specific order.
What the suspension covers
PERM is a Department of Labor labor-certification process commonly used before an employer-sponsored employment-based green-card application. It includes recruitment intended to test the U.S. labor market. If DOL approves the labor certification, the employer must still pursue a later immigration step with U.S. Citizenship and Immigration Services (USCIS). PERM approval alone does not grant a green card.
The reported action concerns DOL’s handling of PERM applications involving Microsoft and other named companies. The announcement, as reported, does not say that H-1B visas have been suspended or that existing H-1B status has been canceled. Axios also reports that green cards already issued are not revoked by this PERM action.
How PERM differs from H-1B status
| Issue | PERM | H-1B |
|---|---|---|
| What it is | A labor-certification step commonly used in an employer-sponsored route to permanent residence. | A temporary nonimmigrant visa program. |
| What the reported action concerns | DOL said it would accept no new and would not process pending PERM applications involving the named companies. | The reported action is not a general suspension of H-1B visas or cancellation of existing H-1B status. |
| Does it itself grant or revoke a green card? | No. PERM approval is not a green card; further immigration processing is required. | H-1B status is separate from permanent residence. |
That distinction matters for workers at different stages. A pending PERM application may be affected by the reported processing halt; an already issued green card is not revoked by the action described in Axios. The available sources do not establish the consequences for every individual case or provide a complete account of any formal order.
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What the administration and Microsoft say
The administration’s allegations
Vice President JD Vance alleged that Microsoft laid off 6,000 U.S. workers while obtaining 6,300 H-1B visas and nearly 3,000 green cards, according to the Associated Press. These are figures Vance cited; they do not establish that visa holders replaced the particular workers who were laid off. The administration’s fraud allegations should likewise be treated as allegations, not as adjudicated findings.
Microsoft’s account
Microsoft said that, of approximately 6,000 H-1B visa applications it submitted in its last fiscal year, 80% were to extend or change the status of existing Microsoft employees. The company said the remaining applications for new employees were for people already legally in the United States and amounted to about 1% of its U.S. workforce. These figures and explanations are Microsoft’s account, not an independent audit.
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Political response
Representative Pramila Jayapal, the House immigration subcommittee’s ranking member, described PERM as the first step toward an employment-based green card and argued that its process is intended to benefit the economy without harming American jobs. That is a political response to the administration’s action, rather than a determination of the legal effect on individual applications.
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The available reporting does not establish how long the Microsoft-specific suspension lasts or set out the full procedural and legal scope of an agency order. DOL separately announced a 180-day suspension involving Cloudera in May 2026, but that was a different action; its duration cannot be assumed to apply to Microsoft. The announcement should therefore not be read as proof that every Microsoft worker’s immigration options are identical or permanently closed.
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What affected workers can do
Anyone whose case may involve Microsoft-sponsored PERM processing should confirm the case’s current stage and obtain advice from qualified immigration counsel. The public announcement alone does not determine an individual’s eligibility, work authorization, or available next steps.
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