What changed and who is affected
According to Labor Secretary Keith Sonderling, Microsoft and Adobe would be suspended from the Permanent Labor Certification program on Thursday, with both companies flagged "due to multiple active federal investigations." He added the agency will stop accepting and processing new applications under the program for other major IT services firms, including Cognizant, Infosys, Capgemini, Tata, Wipro and HCL.
Politics and timing
The timing coincides with the administration ramping up attention to immigration and foreign hiring programs in the lead-up to November's midterm elections. Vice President JD Vance criticized Microsoft, referencing 6,000 layoffs in 2025 and claiming the firm "replaced" the laid-off staff using H-1B visa holders.
Vance said, "So we're going to continue to support Microsoft and have a great relationship with Microsoft, but we're also going to deny them the ability to apply for these permanent residencies until they show that they are going to get serious about putting American workers first." He also said, "It's one thing if you want to bring in a person like Elon Musk," and, "I think 99% of American citizens look at somebody like Elon Musk or Lisa Su, the CEO of AMD, and they say, obviously, if that person wants to come in and build something great in the United States of America, we support that."
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Awards on the same day, and who responded
Also on Thursday, at that very summit where the suspension became public, President Donald Trump plans to award the National Medal of Science to Microsoft CEO Satya Nadella and other tech leaders. Nadella, who was born in India, moved to the United States in 1988 and joined Microsoft in 1992. Nvidia CEO Jensen Huang, SpaceXAI CEO Elon Musk and Advanced Micro Devices CEO Lisa Su are also set to be honored. Each immigrated to the U.S., with Musk born in South Africa and Su and Huang born in Taiwan.
CNBC asked Microsoft and Adobe for comment.
What this could mean for your money
Watch for any changes these companies share on hiring or headcount. That is often the earliest tell for where they plan to focus or pull back next.
Contractor and visa rules shape how tech companies hire. Get the free Market Briefs daily newsletter and follow the case.
