Vance Suspends Microsoft From Green Card Program, Alleging Fraud/ TezzBuzz/ WASHINGTON/ J. Mansour/ The Trump administration announced Thursday that it is suspending Microsoft from a worker green card application program over allegations of fraud. Vice President JD Vance accused the company of using foreign-worker programs to replace American employees and identified nine universities for further scrutiny over J-1 visas. The announcement came hours before President Donald Trump was scheduled to honor Microsoft CEO Satya Nadella with a major technology award.
Quick Look
- Microsoft suspension: The administration alleges the company abused a program used to seek permanent residency for foreign workers.
- Vance’s claims: He cited Microsoft layoffs alongside H-1B approvals and green cards, alleging displacement of American workers.
- Company response: Microsoft did not immediately respond to a request for comment.
- University scrutiny: Nine institutions were singled out for further investigation over alleged J-1 visa fraud.
- Separate student proposal: DHS proposed requiring schools to pay $70,000 for each student’s initial OPT application.
- Award timing: Nadella was scheduled to receive the National Medal of Technology and Innovation later Thursday.
Deep Look
Microsoft Suspended From Worker Green Card Application Program
President Donald Trump’s administration announced Thursday that Microsoft is being suspended from a program used to apply for green cards for foreign workers, alleging that the technology company committed fraud.
Vice President JD Vance outlined the decision alongside other senior administration officials during a White House news conference.
The announcement also expanded scrutiny of universities using J-1 exchange visas and information technology outsourcing firms.
Microsoft, headquartered in Redmond, Washington, near Seattle, did not immediately respond to a request for comment.
Vance Accuses Companies of Misusing Recruitment Requirements
Vance said the program requires employers to advertise positions in the United States before asking the Department of Labor to approve a green card application on the grounds that qualified American workers are unavailable.
He alleged that companies satisfy those requirements through advertisements unlikely to reach potential applicants.
“They’ll put an advertisement in a small-town newspaper. They’ll go out there and say that ‘We have advertised for a position with our company, and nobody is responding to it.’ And they will use that lack of response to then go and replace American workers with what is effectively foreign indentured servants,” Vance said. “There has been no company in the United States, unfortunately, that has used this system more than Microsoft.”
The administration’s allegations concern how Microsoft used the program; the announcement did not establish a court finding of fraud.
Layoffs and Visa Figures Form Basis of Vance’s Criticism
Vance said Microsoft laid off 6,000 American workers last year while obtaining 6,300 H-1B visas and nearly 3,000 green cards.
He used those figures to argue that the company was replacing domestic employees with foreign workers.
“If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” Vance said. “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers.”
Vance argued that H-1B workers are dependent on their employers because losing a job can jeopardize their ability to remain in the country. He also claimed they receive lower pay than Americans performing the same work.
H-1B Program Remains a Target of Administration Supporters
Trump supporters have long criticized H-1B visas and related employment programs, arguing that they undermine American workers and allow employers to exploit foreign labor.
The H-1B program is intended for highly skilled positions that employers have difficulty filling with American workers.
Technology companies are its largest users. Nearly three-quarters of approvals go to workers from India.
Thursday’s action targeted Microsoft’s participation in a green card application program, adding to the administration’s broader scrutiny of foreign-worker recruitment.
Nadella Award Scheduled Hours After Suspension Announcement
The announcement came hours before Trump was scheduled to present Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation.
The award ceremony includes some of the country’s most prestigious science and technology honors and recipients drawn from Trump’s technology billionaire allies.
The timing placed the administration’s allegations against Microsoft alongside its planned recognition of the company’s chief executive.
Nine Universities Singled Out Over J-1 Visa Use
Vance also accused universities of potentially abusing J-1 visas, which allow international visitors to enter the United States temporarily for work and study exchange programs.
He said nine institutions warranted further investigation because they used the program in greater proportions than comparable universities.
The institutions named were:
- Harvard University
- Yale University
- Stanford University
- Brown University
- University of Pittsburgh
- University of California, Davis
- California Institute of Technology
- Arizona State University
- Massachusetts Institute of Technology
The universities did not immediately respond to requests for comment.
Vance’s statements identified institutions for further scrutiny rather than announcing established findings of visa fraud.
Announcement Follows Proposed Fees for International Student Training
The Microsoft decision followed another administration initiative affecting international students’ ability to work in the United States.
On Wednesday, the Department of Homeland Security proposed a $70,000 fee for participation in the Optional Practical Training program, known as OPT.
Under the proposal, schools would pay the fee for each participating student.
OPT allows international students to work in positions related to their academic major during or after their studies.
Together, the announcements broaden the administration’s pressure on employers and universities that use immigration programs to recruit foreign workers, students and exchange visitors.
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