US suspends Microsoft from permanent residency programme over alleged fraud, Vance says

Centre · 1US Vice President JD Vance said on Thursday 8 October that the federal government was suspending Microsoft from a programme that lets skilled foreign workers gain permanent residency, citing alleged fraud. 1 Centre · 1Newsweek described the move as blocking multiple tech companies, including Microsoft and Adobe, from applying for green cards for their H-1B visa holders, and named the PERM programme as the one affected. 2 Mixed · 2Labor Secretary Keith Sonderling said some of the world's largest IT firms would also be suspended, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, as well as Adobe. 3 4

Mixed · 2Sonderling said: "We will not accept any new or process any pending permanent labor certification applications involving these companies," adding that since 2009 the firms had requested almost 3 million foreign workers. 4 5 Centre · 1Officials said companies seen as using the green card route to hire cheap labour and undercut American workers would lose access to PERM. 2 Centre · 1Vance used Microsoft as a key example of alleged abuse, pointing to thousands of layoffs in the past year while the company kept applying for H-1B visas and later green cards. 2

Mixed · 2Vance said Microsoft laid off 6,000 American workers last year while obtaining 6,300 H-1B visas and almost 3,000 green cards, and said: "for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants." 3 4 Centre · 1He also said companies advertise jobs in small-town newspapers, cite the lack of response, and then use that to justify replacing American workers. 3 Centre · 1Vance said the US wants companies to thrive and invest, but to employ American workers, telling Microsoft: "you're a great American company, but you've got to hire great American workers." 2

Mixed · 2Asked why President Trump was awarding the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella the same day, Vance said the administration would keep supporting Microsoft but would deny it permanent-residency applications until it showed it was serious about putting American workers first. 6 4 Centre · 1Officials also said nine universities, including Harvard, Yale and Stanford, would be investigated for allegedly bringing in international students to undercut American wages; Labor Inspector General Anthony D'Esposito said subpoenas had already been served. 1 Right · 1Vance said the nine universities, also including Brown, Pittsburgh, UC Davis, Caltech, Arizona State and MIT, use J-1 visas for federally funded grants at about 61%, against a national average of 38%. 7

Left · 1The announcement followed a proposed $70,000 Department of Homeland Security fee, announced Wednesday, on international students in the Optional Practical Training programme. 8 Centre · 1Newsweek reported that Vance also called on Congress to rework the H-1B programme and urged tech companies to hire American workers. 2 Mixed · 2Microsoft did not immediately respond to requests for comment from outlets including The Independent, the New York Post and Reuters, and the fraud allegations were not independently verified in the coverage. 8 9

Centre · 1Gulf News noted that the suspension does not cancel existing H-1B visas or green cards already issued, and that no duration or number of affected workers has been specified. 9 Mixed · 2Indian outlets stressed the effect on Indian IT firms and on Indian professionals, who receive almost three-quarters of H-1B approvals according to The Independent. 9 8