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Trump honoured the India-born Microsoft CEO as JD Vance accused the company of abusing visa programmes. The suspension also targets major IT services firms, including TCS, Infosys and Wipro
US President Donald Trump honoured Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation hours after his administration suspended the technology giant from a programme that allows employers to sponsor skilled foreign workers for green cards.
Vice President JD Vance accused Microsoft of abusing the visa system by hiring foreign workers while laying off American employees.
The suspension affects the Permanent Labour Certification, or PERM, programme, a key step in the employment-based green card process. Vance said the decision followed an ongoing investigation into Microsoft’s use of the system.
“Thanks to an ongoing investigation, we have decided to suspend the PERM programme for Microsoft,” Vance said, adding that the company would no longer be able to use the programme to seek permanent resident status for eligible foreign workers.
Microsoft defended its hiring practices, saying most of its H-1B visa applications in the last fiscal year were intended to extend or change the status of existing employees rather than recruit new workers.
The company also said it followed the requirements of the visa category and paid foreign workers comparably to other employees performing similar jobs.
“Microsoft only files H-1B petitions for those who meet the rigorous standards of this visa category,” the company said. “We pay our H-1B employees the same as any other employees doing comparable work.”
More from BusinessTrump did not address the immigration dispute while presenting the award to Nadella at the White House. Instead, he praised the Microsoft CEO’s contribution to the technology industry.
“For more than three decades, Satya Nadella has been a key figure in the transformation of Microsoft,” Trump said, crediting the company’s software with empowering businesses, students and consumers worldwide.
Asked about the apparent contradiction between the honour and the suspension, Vance said the administration would continue to support Microsoft and maintain a strong relationship with the company.
Why the US suspended Microsoft
Vance alleged that Microsoft laid off 6,000 US workers last year while obtaining 6,300 H-1B visas and nearly 3,000 green cards. He argued that companies should not be allowed to replace American employees with foreign workers through immigration programmes.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said at a White House news conference.
Microsoft said around 80 per cent of the roughly 6,000 H-1B visa applications it submitted during the last fiscal year were intended to extend or change the status of existing employees. The remaining applications for new employees accounted for about 1 per cent of its US workforce, the company said, adding that these individuals were already legally present in the country.
The H-1B programme allows US employers to hire foreign professionals for specialised occupations. The PERM process is separate and generally requires employers to demonstrate that qualified American workers are unavailable for a position before proceeding with certain employment-based green card applications.
The suspension could create uncertainty for foreign workers seeking permanent residency through their employers. However, it does not automatically mean that existing approved green card cases will be cancelled.
The decision has also drawn criticism from lawmakers who argue that restricting legal immigration pathways could weaken the US technology sector.
US Representative Pramila Jayapal, the top Democrat on the House Judiciary Committee’s immigration subcommittee, criticised the move, saying the administration was restricting legal routes for skilled immigrants to contribute to the US economy.
“ You don’t fix a broken immigration system by taking a hammer to legal immigration,” Jayapal said in a statement.
She argued that the PERM process includes safeguards intended to protect American workers and that targeting Microsoft could undermine the country’s ability to attract talent and innovate.
Indian IT companies also face restrictions
Microsoft was not the only company targeted by the administration. Vance said Adobe and technology consulting firms Cognizant, Tata Consultancy Services, Infosys, Wipro, HCL and Capgemini were also being suspended from the programme. The companies did not immediately respond to requests for comment, according to The Associated Press.
The action could have implications for Indian IT professionals seeking permanent residency through their employers, particularly those working for companies affected by the restrictions. The precise impact will depend on the scope and duration of the suspensions and the status of individual applications.
The crackdown comes amid a broader push by the Trump administration to tighten immigration rules for foreign professionals and international students.
On Wednesday, the Department of Homeland Security proposed a $70,000 fee for international students seeking to work in the US through the Optional Practical Training programme. OPT allows eligible foreign students to take jobs related to their fields of study during or after completing their education. Certain science, technology, engineering and mathematics graduates can qualify for an additional two years of work authorisation.
Vance has also called for investigations into nine universities, including Harvard, Yale, Stanford and the Massachusetts Institute of Technology, over their use of J-1 exchange visas.
Trump honours immigrant technology leaders
The White House ceremony underscored the role of immigrant talent in the American technology industry. Five of the six business leaders recognised by Trump were born abroad.
Alongside Nadella, Trump awarded the National Medal of Science to SpaceX CEO Elon Musk, Google co-founder Sergey Brin, Nvidia CEO Jensen Huang and Advanced Micro Devices CEO Lisa Su. Musk was born in South Africa, Brin in Russia, and Huang and Su in Taiwan.
Dell Technologies CEO Michael Dell, who was born in Texas, also received the National Medal of Technology and Innovation alongside Nadella.
Trump described the recipients as “national treasures” and praised their contributions to American innovation. The honours were part of a White House summit promoting what the administration has called a new golden age of scientific achievement.
The administration has backed investment in artificial intelligence and data centres as it seeks to strengthen US technological leadership. However, its latest immigration measures have raised questions about how American companies will continue attracting skilled workers from overseas while complying with tighter restrictions.
Nadella thanked Trump on social media, saying he was humbled to stand alongside leading figures in American innovation and expressing optimism about further advances in technology and US prosperity.
