US suspends Microsoft permanent residency program: Vance

US Vice President JD Vance said Thursday that Washington has suspended the Labor Department's PERM certification process for Microsoft, halting the tech giant's ability to sponsor foreign workers for permanent residency until the company demonstrates a commitment to American hiring practices. Speaking in Hamilton, Canada, Vance stated: “Thanks to an ongoing investigation, we have decided to suspend the PERM program for Microsoft, which means they will no longer be able to take those H-1Bs and apply for permanent resident status within the United States of America,” according to Anadolu Agency.

Accusations of worker displacement

Vance accused the company of displacing domestic workers in favor of foreign visa holders. “And so, our message to Microsoft is, you’re a great American company, but you’ve got to hire great American workers. You cannot lay off American workers and then replace them with foreign indentured servants,” he added. The PERM program serves as the required initial step for employers seeking to sponsor foreign nationals for green cards.

Administration defends stance

Despite the harsh criticism, Vance maintained the administration maintains strong ties with the technology firm. “Microsoft is a great American company, and we have a great relationship with them,” he said when asked why President Donald Trump planned to award Microsoft's CEO the nation's top technology honor despite the dispute. The vice president noted the company had laid off 6,000 American workers while simultaneously hiring 6,300 H-1B visa holders, saying the administration wants the firm to thrive by “employing and empowering your fellow Americans.”

Conditions for reinstatement

Vance emphasized the administration would continue denying Microsoft permanent residency applications until the company changes its hiring practices. “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 added. The remarks come as the Trump administration pursues broader immigration restrictions targeting major technology employers.