The U.S. Vance claimed Microsoft had “abused” the system, with the company’s H1B filings disproportionately targeting foreign workers. The PERM program, which allows foreign workers to transition to permanent residency, saw over 130,000 applications certified last fiscal year across 10 business categories. The H1B visa cap remains at 85,000 annually, though the program has long been criticized for allegedly suppressing wages and displacing domestic labor.
White House Suspends Microsoft’s Access to Green Card Program Over Fraud Allegations
Vance’s remarks followed a broader campaign targeting foreign worker programs. He accused Microsoft of “flooding” the U.S. with foreign workers, stating that the company’s H1B filings were disproportionately high.
The White House also criticized higher education institutions for their use of J-1 visas, which permit foreign nationals to enter the country temporarily for approved work and study exchange initiatives. Vance singled out nine universities for scrutiny, alleging their use of temporary J-1 visas was disproportionately high compared to other schools and warranted formal investigation for potential fraud. However, the specific institutions were not named, and the U.S. Department of Homeland Security introduced a separate proposal requiring colleges and universities to pay a $70,000 fee for every international student enrolled in the Optional Practical Training (OPT) program.
Microsoft Denies Fraud Allegations, Highlights U.S. Workforce
Microsoft’s spokeswoman disputed Vance’s claims, stating that 80% of the company’s H1B visa filings in the last fiscal year were for existing employees, not new hires. She emphasized that international workers hired through the program received pay matching U.S. employees, noting the median salary for H1B workers at Microsoft was $155,000, according to Ellis, a recruitment firm. The company also highlighted that over 80% of its 200,000 global employees are U.S.-based. Microsoft’s spokeswoman added that the vast majority of Microsoft employees in the United States are Americans,
though the company employs more than 200,000 people worldwide.
He argued that foreign workers “have to leave” the U.S. if their sponsoring company fires them, with the 60-day period being insufficient. Other tech industry figures to receive medals from Trump included Elon Musk, Jensen Huang, Lisa Su, Sergey Brin, and Michael Dell. Nadella and several recipients were also at recent White House events, including a lunch on artificial intelligence and a state dinner for China’s President Xi Jinping.
Broader Immigration Measures and Industry Reactions
Vance’s criticism of Microsoft focused on its alleged use of H1B visas to replace domestic workers. He claimed, For every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants.
The term indentured servants
reflected his argument that foreign workers “have to leave” the U.S. if their sponsoring company terminates their visa. Microsoft’s response emphasized that its H1B workers are paid the same as U.S. employees and that the program is designed to fill specialized roles. However, the company’s actions have reignited debates over the H1B visa system’s impact on wages and labor markets.
The Department of Homeland Security’s proposed $70,000 fee for OPT program enrollment and Vance’s scrutiny of J-1 visa usage at universities highlights the administration’s focus on restricting foreign labor. The broader tension between labor advocates and tech companies highlights the ongoing debate over the H1B program’s role in the U.S. economy.