The United States suspended Microsoft, Adobe and six technology outsourcing firms from a permanent-residency program Thursday, citing investigations into alleged immigration abuses, as India objected to the action and Vice President JD Vance’s remarks.
Labor Secretary Keith Sonderling announced that the department would stop accepting new Permanent Labor Certification applications from the eight companies and halt processing of pending cases. The program is commonly known as PERM.
Alongside Microsoft and Adobe, the affected companies are Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. Sonderling cited ongoing criminal investigations involving the outsourcing firms and multiple active federal investigations involving Microsoft and Adobe.
India’s Ministry of External Affairs responded Friday, stressing that PERM and H-1B are separate programs. Suspending PERM applications does not, by itself, invalidate existing H-1B visas or change the status of visa holders and their dependents, the ministry said.
The decision could, however, affect eligible employees’ efforts to obtain permanent residency, or green cards, according to the statement.
At the White House announcement, Vance accused Microsoft of using foreign-worker programs while laying off Americans. He tied the company’s PERM suspension to an ongoing investigation.
“You cannot lay off American workers and then replace them with foreign indentured servants,” Vance said.
The material reviewed does not independently establish that Microsoft replaced laid-off American employees with foreign workers.
Microsoft disputed the administration’s characterization. The company said about 80% of its H-1B applications in the last fiscal year involved extending or changing existing employees’ status. It also said H-1B employees receive the same pay as others doing comparable work, according to Reuters.
India’s Ministry of External Affairs criticized Vance’s remarks, calling his descriptions unwarranted and saying they overlooked Indian professionals’ skills and contributions to the U.S. economy and innovation.
“Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive.”
The ministry argued that the movement of skilled workers benefits both countries. It cited opportunities for Indians and contributions to American companies’ research, productivity, competitiveness and job creation.
“The steps announced by the US do not advance the shared ambitions of both countries,” it said.
In a separate post on X, Sonderling described the suspensions as the first step in further enforcement against alleged fraud and abuse. The Labor Department inspector general’s account also pledged continued action, including scrutiny of universities.
India said it would continue following developments.
