On Thursday, October 8, the Trump administration made two major moves that seemed peculiarly at odds.
In the morning, Vice President JD Vance spoke at the White House. He accused Microsoft and other technology and IT outsourcing firms of gaming the U.S. immigration system. He said they’re giving jobs meant for Americans to foreign labor, who he referred to as “foreign indentured servants” in an effort to “undercut the wages of American workers.”
He also said the H-1B visa program, which is supposed to let companies bring in the best talent from outside the U.S. for positions impossible for American workers to fill, has become “rife with fraud over the last several years.”
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Vance singled out the biggest violator of the H-1B and PERM (Permanent Labor Certification) program, saying “there has been no company in the United States, unfortunately, that has abused this system more than Microsoft.”
As chair of the White House Task Force to Eliminate Fraud, Vance said that due to an “ongoing investigation,” the government has “decided to suspend the PERM program for Microsoft.”
Microsoft pushed back, saying it “only files H-1B petitions for those who meet the rigorous standards of this visa category.”
India also responded to Vance’s comments, calling them “deeply offensive,” as official USCIS data showed that 70% of the beneficiaries of H-1B petitions approved in FY 2025 were born in India.
Later that same day, according to NBC News, President Donald Trump awarded top science medals to six tech billionaires, five of whom are immigrants, including India-born Microsoft CEO Satya Nadella.
The contrast between Vance and Trump’s actions on the same exact day is attention-grabbing.
What the suspension does and doesn’t do
The H-1B visa does not grant a foreign worker permanent residency in the United States. Instead, it is a temporary, non-immigrant visa that allows employers to bring highly skilled professionals to the country to work.
The PERM program, on the other hand, is the first real step in the application for a green card, and that is what the U.S. is suspending for Microsoft and others. The other affected companies include Adobe and six IT outsourcing firms –– Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini.
The suspension does not stop these companies from applying for H-1B visas, but Trump’s administration is trying to make the process difficult. In September 2025, Trump signed a proclamation adding a $100,000 fee to each new H-1B petition. The fee before that was in the $2,000 to $5,000 range.
While the fee went into effect and was collected for several months, federal courts in June and September 2026 blocked and vacated the policy. The fee is currently not being collected due to these court rulings, but the government has extended the policy via proclamation and is appealing the decisions.
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Can immigration visa friction affect U.S. tech growth?
The affected companies are among the largest in the market, and any significant restrictions on hiring talent could deal a heavy blow to the tech industry, as many companies need to hire scarce talent quickly to match the pace at which projects are being built.
After Trump’s $100,000 executive order in 2025, Jensen Huang, President and CEO of Nvidia, told his staff in a memo that he would keep sponsoring visas and absorb the cost.
“The miracle of Nvidia — built by all of you, and by brilliant colleagues around the world — would not be possible without immigration,” Huang said. “Legal immigration remains essential to ensuring the U.S. continues to lead in technology and ideas.”
Politico also recently reported that four representatives of the tech industry have warned that the Trump administration’s PERM suspension could counter its own efforts to make the U.S. a global innovation leader.
Trump’s award on October 8 seems like a step in the right direction for the U.S. tech industry. He gave the National Medal of Science to Elon Musk, Sergey Brin, Jensen Huang and Lisa Su, while Satya Nadella and Michael Dell received the National Medal of Technology and Innovation.
However, imposing harsh restrictions on the companies these same individuals run feels counterintuitive and could undermine innovation.
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Peace Longe is a financial journalist with over five years of experience covering various finance verticals.
