Microsoft President Brad Smith has warned that restricting employment-based green card sponsorship could push skilled workers out of the United States and weaken the country’s technology sector.
His comments followed the Trump administration’s October 8, 2026 announcement suspending Microsoft and seven other companies from the Permanent Labor Certification program, commonly known as PERM. The Department of Labor said it would stop accepting new PERM applications involving the companies and pause pending applications.
As of October 16, 2026, the administration has not announced an end date for the suspension.
In an interview reported by Reuters on October 15, Smith argued that blocking permanent residency pathways for highly skilled immigrants could damage U.S. technological competitiveness for more than a generation.
Smith also rejected Vice President JD Vance’s accusation that Microsoft had abused the H-1B program. Vance had cited Microsoft’s layoffs alongside the company’s H-1B and green card sponsorship numbers when announcing the enforcement action.
Microsoft offered a different interpretation of its filings. In an October 8 company statement, Microsoft said:
Smith separately told Politico that Microsoft hired 9,200 American workers during its last fiscal year. The administration’s allegations and Microsoft’s response therefore remain sharply disputed.
PERM is a Department of Labor process used in many employer-sponsored green card cases, particularly in the EB-2 and EB-3 categories.
Before filing certain immigrant petitions with U.S. Citizenship and Immigration Services, an employer generally must demonstrate that there are not enough able, willing, qualified and available U.S. workers for the position. The employer must also show that hiring the foreign worker would not adversely affect similarly employed U.S. workers’ wages and working conditions.
The suspension applies to:
According to the administration’s announcement, the Department of Labor will not accept new PERM applications involving these employers and will not continue processing their pending applications.
This is not a general suspension of the H-1B visa program. It also does not, by itself, revoke an employee’s existing H-1B status, employment authorization document or lawful permanent resident status.
The most immediate consequences fall on foreign workers whose employment-based green card cases depend on a new or pending PERM application with one of the eight companies.
Important implications include:
Pending PERM cases cannot move forward normally. Workers may face an indefinite delay at an early stage of the green card process.
New sponsorship cases cannot begin with these employers through PERM. This could affect F-1 students and OPT or STEM OPT workers considering jobs with the named companies and expecting them to begin green card sponsorship.
Existing temporary work authorization is separate. The announcement does not automatically cancel H-1B petitions or change CPT, OPT or STEM OPT rules.
Long-term immigration planning may become more difficult. A prolonged PERM delay can be especially important for workers approaching limits on their temporary status or relying on green card progress for future employment flexibility.
The action also follows broader federal scrutiny of immigration sponsors with significant layoffs. Day1CPT.org readers can review the related H-1B policy increasing attention on employers with recent layoffs.
The administration has not provided a specific expiration date for the suspension. Vance said the PERM restrictions could remain in place as long as officials consider them necessary.
Microsoft has said it plans to provide the administration with additional information. Smith’s latest comments suggest the company will continue publicly challenging the government’s interpretation of its immigration filings and workforce decisions.
Affected employees should confirm the exact stage of their case with their employer’s immigration team. Someone with a pending PERM application faces a different situation from a worker who already has an approved PERM certification, approved Form I-140 or pending Form I-485.
No. The suspension targets the Department of Labor’s PERM green card process, not H-1B status generally. Existing H-1B workers at Microsoft or the other named companies do not automatically lose their status because of this announcement.
The Department of Labor said it would stop processing pending PERM applications involving Microsoft and the seven other named employers. A paused application has not necessarily been denied, but it cannot advance normally while the suspension remains in place.
Not directly. The action does not change F-1, OPT or STEM OPT employment rules. However, it may affect a student’s long-term plans if they work for—or are considering joining—one of the named employers and expect that employer to sponsor a PERM-based green card.
No. The announcement concerns PERM applications involving Microsoft as the sponsoring employer. It should not be described as a universal ban on every possible green card category or application involving a Microsoft employee.
No end date has been announced as of October 16, 2026. Workers should not assume the suspension will end on a particular date unless the Department of Labor issues a new announcement or formal guidance.