The White House has taken significant action against Microsoft and several other technology firms by barring them from hiring skilled international workers on a permanent basis through the H1B visa program. This decision was announced amid accusations from Vice President JD Vance that these companies, including Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, have committed fraud in their use of the program.

Accusations of Fraud

During a conference on Thursday, Vance stated, "No company in the US has abused this system more than Microsoft," alleging that the tech giant has been replacing American workers with what he termed "foreign indentured servants." In response, Secretary of Labor Kieth Sonderling confirmed that the US government will not process any new or pending Permanent Labor Certification Program (PERM) applications from Microsoft or the other companies mentioned.

Sonderling criticized these companies and US universities for turning into "visa mills" that flood the US labor market with foreign workers. The H1B visa program, which is a precursor to the PERM process, is capped at 85,000 visas per year.