Microsoft warned that green-card restrictions could weaken U.S. technology leadership, arguing that limiting permanent-residency options for skilled foreign workers may encourage sought-after professionals to build their careers in other countries.
Microsoft President Brad Smith made the warning in an interview published by Politico on October 15, 2026. He said blocking pathways to permanent residency for highly skilled immigrants could damage the U.S. technology industry for more than a generation, according to Reuters.
Smith also rejected Vice President JD Vance's allegations that Microsoft had abused the H-1B visa program, calling the claims unfounded. He said the company uses the same compensation system for employees performing comparable work, regardless of immigration status, and noted that Microsoft hired more than 9,000 U.S.-born workers during the previous year.
The comments followed an October 8, 2026, announcement that the Trump administration was suspending Microsoft and seven other companies from a federal permanent labor certification program. The other named employers included Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini.
The Labor Department's permanent labor certification process, commonly known as PERM, is an important step in many employment-based green-card cases. Employers generally must demonstrate that qualified U.S. workers are not available for a position and that hiring a foreign worker would not harm the wages or working conditions of similarly employed U.S. workers.
Vance accused Microsoft of replacing laid-off American employees with foreign workers and cited the company's use of H-1B visas and employment-based green cards. The administration described the suspensions as part of a broader effort to investigate alleged fraud and protect domestic workers. No final finding of fraud was announced with the initial suspension.
Microsoft said approximately 80% of the roughly 6,000 H-1B petitions it submitted in its last fiscal year involved extensions or status changes for existing employees. It said the remaining filings covered people already legally present in the United States and represented about 1% of its U.S. workforce.
For international professionals, the dispute highlights the difference between temporary work authorization and permanent residence. An H-1B classification allows qualifying professionals to work temporarily, while PERM can support an employer-sponsored green-card application. Restrictions on an employer's access to PERM may therefore reduce long-term immigration options even when a worker's current temporary status remains valid.
The scope, duration and legal consequences of the suspensions may depend on further Labor Department action. Affected employees should rely on official notices and individualized advice rather than assume that the announcement automatically cancels an existing visa or green-card application.
This article provides general information and is not legal advice.