The U.S. administration, led by Vice President JD Vance and Secretary of Labor Keith Sonderling, has suspended eight technology companies from a program that allows them to sponsor foreign employees for permanent residency. The affected companies include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. This move is part of an effort to address alleged abuses in the professional immigration system, which critics say has allowed some firms to prioritize hiring foreign workers over American employees. The suspended program, known as the Permanent Labor Certification Program (PERM), is a key step for many foreign workers seeking permanent residency based on employment. Companies participating in the program must prove that no sufficiently qualified, available, and willing American workers exist for the position in question and must comply with wage and recruitment rules meant to protect U.S. job markets. The suspension does not affect existing H-1B visas or green cards already granted but blocks new applications and pending submissions. Vice President JD Vance accused Microsoft of being the most egregious abuser of the system, citing figures of 6,000 American employees laid off by the company in 2025, along with 6,300 H-1B visas and nearly 3,000 green cards obtained in favor of foreign workers. However, these figures do not necessarily prove that the laid-off employees were replaced by foreign workers or that the administrative actions cited were of the same nature. Microsoft has stated that approximately 6,000 H-1B applications were submitted during its last fiscal year, with 80% aimed at extending or modifying the status of existing employees. The company emphasized that the procedures concerning other recruits represented only 1% of its American workforce and involved individuals already legally residing in the United States. Microsoft also rejected the claim that H-1B workers are paid less than American employees, stating that they are paid the same as other employees performing comparable work. The administration, however, has proposed a new H-1B fee of $103,265, or approximately €92,300, in August 2026, illustrating an intention to increase the cost of certain international recruitments. The economic impact of the suspension will vary among the affected companies. Tata Consultancy Services (TCS) has indicated that the decision will not significantly change its recruitment strategy or commercial commitments, noting that it submitted fewer than ten PERM applications in the last two years. In contrast, Microsoft relies heavily on the PERM program for managing international careers. American universities are also under scrutiny, with nine institutions, including Harvard, Yale, Stanford, Brown, and the Massachusetts Institute of Technology, being investigated regarding the use of J-1 visas. The administration has proposed a contribution of $70,000, or approximately €62,600, for certain first-time student work applications under the OPT program. The administration's actions have highlighted contradictions in its policy, as evidenced by the simultaneous honoring of foreign-born technology leaders with the National Medal of Technology and Innovation by President Donald Trump. This sequence of events may influence future recruitment discussions for companies like Microsoft, Adobe, and Capgemini, as foreign candidates will need to obtain details on sponsorship programs and the conditions under which a PERM certification could resume. Employers will have to navigate an administrative framework with an unknown duration of suspension, raising questions about the future of workers whose path to a green card depends on this halted procedure.