US Suspends Microsoft, Adobe and Indian IT Firms From Residency Program
The suspensions target a route companies use to sponsor foreign workers for permanent US jobs, widening the administration's crackdown amid allegations of visa and labour programme abuse.
By Hushread Stories, written with AI from 8 outlets · First published 8 Oct 2026
In brief
- Vice President JD Vance announced Microsoft's suspension from a federal programme used to sponsor foreign workers.
- Adobe and several other technology firms are also affected by the suspension of permanent residency sponsorship.
- Reports name Infosys, TCS, Wipro, HCL and Cognizant among the companies suspended from the PERM scheme.
- The action comes amid an investigation into alleged abuse of visa and labour programmes by employers.
- The available reports do not specify suspension lengths or explain what happens to applications already pending.
Timeline · 4 moments
Indian IT firms named among PERM programme suspensions
India Today ↗Adobe named alongside Microsoft in sponsorship programme suspensions
Business Insider ↗Vance alleges abuse behind Microsoft green card suspension
The Independent ↗Vance announces Microsoft suspension from permanent residency programme
World News CNA ↗How it started
Vice President JD Vance announced on October 8 that Microsoft was being suspended from a federal programme used to sponsor foreign workers for permanent residency. World News CNA reported the announcement, while The Independent described it as a suspension from the green card programme following allegations of abuse.
The dispute centres on employers' use of foreign labour and access to permanent residency sponsorship. Business Insider reported that Vance accused Microsoft of abusing the programme. The coverage provided does not establish those allegations as proven.
How it unfolded
The October 8 reports quickly showed that the action extended beyond Microsoft. According to Axios, Vance said he was suspending Microsoft, Adobe and several other IT firms' ability to hire foreign-born workers for permanent jobs in the US.
Reporting the same day identified several Indian IT companies among those affected. Times of India named Tata and Wipro in its account of suspensions from the PERM scheme. India Today named Infosys, TCS, Wipro and HCL.
Top World News- News18.com also named Cognizant and reported that the suspensions came amid an investigation into alleged H-1B and labour programme abuse. The available coverage does not give a separate announcement time for each company, so these reports establish the breadth of the action rather than a precise sequence of suspensions.
Where it stands
The reported action concerns access to permanent residency sponsorship, described in the coverage as the PERM or green card programme. References to alleged H-1B abuse should not be read as evidence that every affected employee's existing visa has been cancelled. The supplied reports do not say that.
The potential reach is substantial: Axios said the move would affect hundreds, although the supplied excerpt does not provide a fuller breakdown. It also does not establish how long the suspensions will last or how pending applications will be handled.
What to watch
The central unanswered questions are the scope and duration of the suspensions, and whether workers with applications already underway will be affected. The investigation reported by Top World News- News18.com also leaves open what findings, if any, will support the allegations and what conditions companies would need to meet to regain access.


