US Suspends Microsoft Green Card Applications Over H-1B Fraud Claims

The Trump administration has suspended Microsoft’s ability to apply for green cards on behalf of H-1B visa workers, accusing the company of systematically replacing American employees with foreign labor. The action came despite Microsoft CEO Satya Nadella recently receiving a presidential medal, making for a contradictory moment between the White House and one of the country’s largest tech employers.

What the Government Alleges

Vice President JD Vance made the announcement public, framing the H-1B program as one that has been misused for decades. According to PC Gamer, Vance stated directly: “There has been no company in the United States, unfortunately, that has abused this system more than Microsoft.” His argument centered on a specific set of numbers: Microsoft laid off roughly 6,000 American workers last year while simultaneously benefiting from approximately 6,300 H-1B visas and close to 3,000 green card approvals. Vance concluded that for every American let go, the company effectively brought in one-and-a-half foreign workers to fill the gap.

Vance repeatedly described H-1B holders as “foreign indentured servants,” a characterization that frames legal immigration as a form of coerced labor rather than a voluntary career decision made by skilled professionals seeking work in the United States.

What the Suspension Actually Means

As reported by Game Developer, the suspension does not block Microsoft from hiring workers on temporary H-1B visas. The company can still bring in non-American workers on that basis. What it cannot do is apply to convert those workers to permanent residents through the green card process, which is a significant barrier for employees hoping to build long-term lives in the United States. That outcome sits oddly alongside an administration that has made mass deportation a central policy priority, since keeping workers in a permanent temporary status does not reduce their presence in the country.

Microsoft’s Response and the Broader Contradiction

Microsoft issued a statement saying it looks forward to working with the administration, though it stopped short of disputing the underlying numbers cited by Vance. The situation carries an obvious tension: the same government leveling fraud accusations at the company recently honored its CEO. PC Gamer notes that just three months before the suspension, Microsoft had pushed back against claims that it was using H-1B visas to displace American workers, calling such suggestions a racist conspiracy theory at the time.

Vance framed the administration’s position as not hostile to Microsoft as a business, saying the company is welcome to thrive in the United States and invest here, but that it must hire American workers rather than replace domestic employees with foreign ones. Whether the green card suspension will pressure the company to change its hiring practices or simply limit options for existing visa holders remains to be seen.

Sources: PC Gamer, Game Developer