Microsoft H-1B Suspension 2026: PERM Green Card Ban Explained

Microsoft H-1B Visa Program Suspension 2026: What It Means, Who Is Affected, and What Comes Next

On October 8, 2026, the Trump administration suspended Microsoft and seven other companies from the PERM program, the labor certification step required before sponsoring H-1B workers for employment-based green cards. The suspension does not cancel existing H-1B visas, but it blocks these companies from filing new PERM applications or advancing pending ones. Microsoft disputes the fraud allegations and says 80% of its H-1B filings were for existing employees.

Quick Facts

What Is This Program?

The program at the center of this suspension is PERM — the Permanent Labor Certification program.

PERM is the first mandatory step for most employers seeking to sponsor a foreign worker for an employment-based green card (typically EB-2 or EB-3). Before an employer can file an immigrant petition (Form I-140) for a worker, the Department of Labor must certify that:

• The employer attempted to recruit U.S. workers for the position

• No qualified and willing U.S. workers were available

• Hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers

The PERM process is separate from the H-1B visa program. An H-1B visa is a temporary work visa that allows foreign professionals to work in the U.S. for up to six years (with extensions). PERM is the bridge from temporary H-1B status to permanent residency (a green card).

When the administration says it is “suspending Microsoft from the H-1B visa program,” it is more precisely suspending Microsoft’s access to the PERM green card sponsorship pathway for its H-1B workers. Microsoft can still file H-1B petitions for new and existing employees. What it cannot do is file or advance PERM applications that would allow those workers to obtain green cards through Microsoft.

The PERM program is administered by the Department of Labor’s Office of Foreign Labor Certification. Processing times for PERM applications averaged 501 days as of mid-2026, with some cases taking two to three years from start to finish.

Who Qualifies?

This is not a benefits program with eligibility criteria. It is a suspension action against specific companies.

The relevant question is: which companies are affected, and which workers are impacted?

Companies suspended from PERM (as of October 8, 2026):

Workers affected:

• H-1B workers employed by these companies who are currently in the PERM process or whose employers planned to file PERM on their behalf

• Workers whose PERM applications are already pending with the Department of Labor

• Workers who were counting on their employer to sponsor them for a green card through PERM

Workers NOT directly affected:

• H-1B workers at other companies not on the suspension list

• H-1B workers whose green card is being sponsored through a different pathway (such as EB-1 extraordinary ability, EB-2 NIW, or family-based sponsorship)

• H-1B workers who already have an approved I-140 petition and are waiting for priority dates

• F-1 students, OPT workers, or other visa categories

Common exceptions:

• Workers who have already received their green cards are not affected

• Workers whose PERM application was already certified before the suspension may continue with the I-140 and adjustment of status process, though the administration has indicated it will not process pending PERM applications from these companies

Income Limits

There are no income limits for this suspension action. This is not a means-tested benefits program. The suspension applies to companies regardless of the salaries they pay H-1B workers.

For context, H-1B workers at Microsoft had a median salary of $180,710 in FY2026, with the 75th percentile at $200,000. The overall median H-1B salary across all employers in FY2026 was $130,707.

Vice President Vance alleged that Microsoft was paying foreign workers tens of thousands of dollars less than American citizens doing the same jobs. Microsoft has disputed this characterization, stating that H-1B visa holders are paid the same as other employees doing comparable work.

Asset Limits

Asset limits do not apply to this action. The PERM suspension is a compliance and enforcement measure, not a benefits program. There are no asset tests, no resource limits, and no financial eligibility criteria for the companies or workers involved.

Household Requirements

There are no household requirements for this suspension. The action targets corporate entities, not individual households. However, the practical impact on H-1B workers and their families is significant:

• H-1B workers whose green card pathway is blocked may face uncertainty about their long-term immigration status

• Spouses on H-4 visas and children may be affected if the family’s immigration plans change

• Workers whose PERM applications are stalled may need to consider alternative visa categories or employment options

For families relying on the H-1B worker’s income and immigration status, the suspension creates planning challenges even though it does not directly impose household requirements.

Citizenship Rules

Citizenship rules are not directly relevant to this suspension action. The PERM program and H-1B visa program are employment-based immigration pathways, not citizenship-based benefits.

However, the broader context matters:

• The administration has framed this action as protecting American workers

• Vice President Vance said the message to Microsoft is: “You cannot lay off American workers and then replace them with foreign indentured servants”

• The suspension does not affect U.S. citizens or permanent residents

Immigration Eligibility

The suspension directly impacts the immigration pathway for H-1B workers at the affected companies.

Who is affected:

• H-1B workers at Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL, and Capgemini who are in the PERM process

• Workers whose employers have filed or planned to file PERM applications

• Workers who were relying on their employer to sponsor them for an employment-based green card

Who is NOT affected:

• H-1B workers at other companies

• Workers with approved I-140 petitions who are waiting for priority dates

• Workers pursuing green cards through EB-1, EB-2 NIW, or family-based categories

• Workers who have already adjusted status to permanent residency

The 60-day grace period: Separately, the Department of Homeland Security has proposed eliminating the 60-day grace period that currently allows H-1B workers who lose their jobs to remain in the U.S. while seeking new employment. This proposal, if finalized, would compound the uncertainty for H-1B workers at affected companies. The public comment period on this proposed rule runs through November 10, 2026.

**The $100,000 fee:** A presidential proclamation imposing a $100,000 payment requirement on certain H-1B petitions was extended through September 21, 2027, but federal courts have blocked its implementation. As of October 2026, the $100,000 fee is not being collected.

State Differences

This suspension is a federal action and applies uniformly across all states. There are no state-by-state variations in the PERM suspension itself.

However, the practical impact varies by state based on where the affected companies have major operations:

H-1B workers in these states may face greater disruption, though the suspension applies to the companies regardless of location.

Required Documents

There are no documents that individual workers can submit to reverse this suspension. The action is directed at the companies, not at individual H-1B workers.

However, H-1B workers at affected companies should ensure they have:

Workers should consult with an immigration attorney to understand their specific situation.

How to Apply

There is no application process for individual workers to reverse this suspension. The suspension was imposed by the Department of Labor and can only be lifted by the administration.

What H-1B workers at affected companies can do:

Step 1: Understand your situation. Determine whether your employer has filed a PERM application on your behalf or was planning to. If your PERM is already pending, it will not be processed while the suspension is in effect.

Step 2: Consult an immigration attorney. An attorney can assess your options, including:

• Whether you qualify for a different green card category (EB-1, EB-2 NIW)

• Whether changing employers is feasible

• Whether you have a valid priority date that can be retained

• Whether you can extend your H-1B status beyond six years

Step 3: Explore alternative employment. If your green card pathway is blocked, you may consider transferring to an employer not subject to the suspension. H-1B transfers are generally permitted and are not affected by the PERM suspension.

Step 4: Consider alternative visa categories. Depending on your qualifications, you may be eligible for O-1 (extraordinary ability), L-1 (intracompany transfer), or other visa categories that offer different pathways.

Step 5: Monitor developments. The suspension is indefinite but may be lifted if the administration determines that the companies have reformed their practices. Microsoft has stated it looks forward to providing the administration with additional information.

Online Application

There is no online application to reverse the PERM suspension. The suspension is not a benefits program with an application process.

For workers seeking alternative immigration pathways, the relevant online systems are:

• USCIS online filing: uscis.gov for I-140 petitions, I-129 H-1B petitions, and adjustment of status applications

• Department of Labor FLAG system: flag.dol.gov for PERM filings (for employers not subject to the suspension)

• Visa Bulletin: travel.state.gov for priority date information

Processing Time

There is no processing time for reversing this suspension. The administration has not announced a timeline for lifting the PERM suspension for the affected companies.

Relevant processing times for context:

For H-1B workers at affected companies, the PERM suspension adds an indefinite delay to an already lengthy green card process.

Payment Schedule

There is no payment schedule associated with this suspension. This is not a benefits program that provides monthly payments.

For context on H-1B costs:

• H-1B filing fees: Range from $780 to $2,805 depending on employer size and filing type

• Premium processing: $2,805 for 15-business-day processing

• $100,000 fee: Currently blocked by federal courts; not being collected

• PERM filing fees: No fee to file PERM, but employer must pay for recruitment costs

Renewal Process

There is no renewal process for this suspension. It remains in effect until the administration lifts it.

However, H-1B workers should be aware of these renewal-related issues:

• H-1B extensions: Can still be filed and approved for workers at affected companies. The PERM suspension does not affect H-1B status.

• H-1B beyond six years: Workers with an approved I-140 and a priority date that is not current may be eligible for extensions beyond six years under AC21. However, if PERM is suspended and no I-140 can be approved, this pathway may be unavailable.

• Recapturing time: Workers who have spent time outside the U.S. may be able to recapture that time to extend their H-1B stay.

Reasons Applications Are Denied

This is not an application-based program, so traditional denial reasons do not apply. However, the administration cited several reasons for imposing the suspension:

Microsoft disputes these characterizations, stating that 80% of its H-1B applications were to extend or change the status of existing employees, not to hire new workers.

Appeals Process

There is no formal appeals process for individual workers affected by this suspension. The suspension is an administrative action by the Department of Labor, not a decision on an individual application.

What companies can do:

• Provide additional information to the administration to demonstrate compliance

• Challenge the suspension through legal action, though no such action has been announced

• Work with the Department of Labor to address the allegations

What workers can do:

• File a lawsuit if they believe they have been individually harmed, though this is complex and unlikely to succeed

• Seek alternative employment or immigration pathways

• Contact their congressional representatives to express concerns

Microsoft has stated: “We look forward to providing the Administration with additional information.”

Common Mistakes

H-1B workers and employers should avoid these mistakes:

1. Assuming the H-1B program is entirely suspended – The suspension is limited to PERM green card sponsorship at specific companies. H-1B visas, extensions, and transfers are not affected.

2. Assuming all green card pathways are blocked – Only the PERM pathway is suspended. EB-1, EB-2 NIW, and family-based pathways remain available.

3. Quitting your job immediately – H-1B workers who quit may face difficulty finding new employment within the 60-day grace period (if it still exists) and may need to leave the country.

4. Not consulting an immigration attorney – Individual circumstances vary widely. An attorney can help assess options.

5. Waiting for the suspension to be lifted without a backup plan – The suspension is indefinite. Workers should explore alternatives now.

6. Ignoring the proposed elimination of the 60-day grace period – If finalized, this rule would make it harder for laid-off H-1B workers to remain in the U.S.

7. Assuming the $100,000 fee is in effect – Courts have blocked it, but the administration is appealing. Monitor developments.

8. Not documenting your immigration history – Keep copies of all I-797s, I-94s, pay stubs, and other immigration documents.

9. Believing online rumors – Rely on official sources: USCIS.gov, DOL.gov, and reputable immigration law firms.

10. Giving up on the U.S. entirely – Other employers may still sponsor you. H-1B transfers are not affected by the PERM suspension.

Recent Changes

Several significant developments have shaped the H-1B landscape in 2026:

October 8, 2026: Trump administration suspends Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL, and Capgemini from the PERM program.

September 18, 2026: President Trump signs an Executive Order and proclamation extending H-1B entry restrictions and the $100,000 fee requirement for another year (through September 21, 2027). The Executive Order also expands oversight of the H-1B program.

September 11, 2026: DHS issues a proposed rule to eliminate the 60-day grace period for H-1B and other employment-based nonimmigrant workers. Public comment period runs through November 10, 2026.

June 8, 2026: A federal court strikes down the $100,000 H-1B fee as an unconstitutional tax. The First Circuit Court of Appeals later denies the government’s request to stay the ruling, keeping the fee blocked.

February 27, 2026: DHS finalizes a rule replacing the random H-1B lottery with a wage-based, weighted selection system. The statutory caps (65,000 regular + 20,000 advanced degree) remain unchanged.

May 2025: Microsoft lays off approximately 6,000 workers, a fact cited by Vice President Vance in announcing the PERM suspension.

Frequently Asked Questions

Is Microsoft’s H-1B program suspended?

Microsoft’s access to the PERM green card sponsorship program is suspended, but Microsoft can still file H-1B petitions for new and existing employees. The suspension blocks the company from filing or advancing PERM labor certifications, which are required for most employment-based green cards.

Does this affect existing H-1B visa holders at Microsoft?

Existing H-1B visas are not revoked. Microsoft employees can continue working on their H-1B status. However, their ability to obtain a green card through Microsoft’s PERM sponsorship is blocked indefinitely.

Can Microsoft employees transfer to another company?

Yes. H-1B transfers are not affected by the PERM suspension. Workers can transfer to another employer that is willing to sponsor them, and that employer may be able to file PERM on their behalf.

How long will the suspension last?

The administration has not announced an end date. Vice President Vance said the suspension will continue until Microsoft “puts American workers first.” Microsoft has said it looks forward to providing additional information to the administration.

What is PERM and why does it matter?

PERM (Permanent Labor Certification) is the first step in the employment-based green card process. It requires employers to prove they tried to recruit U.S. workers and found none qualified. Without PERM certification, most employers cannot file an I-140 immigrant petition for a worker.

Does this affect H-1B extensions?

No. H-1B extensions are not affected by the PERM suspension. Workers at affected companies can still extend their H-1B status, subject to existing rules.

What about the 60-day grace period?

DHS has proposed eliminating the 60-day grace period that allows H-1B workers who lose their jobs to remain in the U.S. while seeking new employment. The rule is not yet final; the public comment period runs through November 10, 2026.

Is the $100,000 H-1B fee in effect?

No. Federal courts have blocked the $100,000 fee, and the First Circuit Court of Appeals has denied the government’s request to stay the ruling. The fee is not currently being collected, though the government is appealing.

Can I get a green card through a different pathway?

Possibly. If you qualify for EB-1 (extraordinary ability), EB-2 NIW (national interest waiver), or family-based sponsorship, those pathways are not affected by the PERM suspension. Consult an immigration attorney to assess your options.

What should Microsoft H-1B workers do now?

Consult an immigration attorney, explore alternative employment opportunities, and consider whether you qualify for a different green card category. Keep all immigration documents up to date and monitor official announcements.

Which other companies are affected?

Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini are also suspended from the PERM program.

Is this the same as the H-1B visa suspension from 2020?

No. The 2020 proclamation temporarily suspended entry of certain H-1B workers during the COVID-19 pandemic. The 2026 action suspends specific companies from the PERM green card sponsorship program. They are different actions with different legal bases and impacts.

Key Takeaways

• Microsoft and seven other companies are suspended from the PERM green card sponsorship program, effective October 8, 2026.

• The suspension does not cancel H-1B visas or block H-1B extensions and transfers; it blocks the PERM labor certification pathway to green cards.

• Vice President Vance accused Microsoft of laying off 6,000 U.S. workers while obtaining 6,300 H-1B visas and nearly 3,000 green cards.

• Microsoft disputes the fraud allegations, stating that 80% of its H-1B applications were to extend or change the status of existing employees.

• The suspension is indefinite, with no announced end date.

• DHS has proposed eliminating the 60-day grace period for H-1B workers who lose their jobs; the rule is not yet final.

• The $100,000 H-1B fee is currently blocked by federal courts and is not being collected.

• H-1B workers at affected companies should consult an immigration attorney to assess alternative pathways.

• EB-1, EB-2 NIW, and family-based green card pathways are not affected by the PERM suspension.

• H-1B transfers to other employers are permitted and are not blocked by the suspension.

Official Government Resources

• U.S. Department of Labor, Office of Foreign Labor Certification: dol.gov/agencies/eta/foreign-labor

• U.S. Citizenship and Immigration Services (USCIS): uscis.gov

• Department of Homeland Security (DHS): dhs.gov

• U.S. Department of State, Visa Bulletin: travel.state.gov

• USA.gov: usa.gov

• Benefits.gov: benefits.gov

Related Government Benefits

H-1B workers and their families may be eligible for certain benefits depending on their immigration status and circumstances: