White House pauses PERM approvals over alleged H1B visa fraud

The White House has halted the processing of new and pending Permanent Labor Certification Program (PERM) applications for Microsoft and seven other major tech firms. The pause, announced in connection with concerns about fraud in the H1B visa system, temporarily blocks these companies from advancing cases that could lead to certain foreign workers toward permanent residency in the United States.

The action centers on allegations that some employers have used the H1B and PERM pathways in ways that flood the U.S. labor market with foreign workers. Vice President JD Vance framed the issue by accusing Microsoft and the other named companies of abusing the system and of replacing American workers with foreign labor. The administration has described the PERM route as a step toward green cards for workers who already have H1B status or who intend to join U.S. employers in specialized fields.

In confirming the pause, Labor Department officials said they will not process any new PERM applications from the eight firms during the review. The department has repeatedly highlighted that the H1B program, while designed to attract skilled international workers, is subject to safeguards to prevent misuse and to ensure U.S. workers are not unduly displaced. The H1B visa cap remains at around 85,000 visas each year, a figure cited in discussions about skilled immigration and wage effects.

Microsoft responded by noting that the majority of its H1B filings in the last fiscal year were related to employees already working in the United States rather than new hires. A company spokesperson added that foreign workers brought in under H1B at Microsoft are paid at levels that match those of comparable U.S. employees. Microsoft’s global workforce is large, and the company emphasized that most workers are based outside the United States as well as in domestic roles.

Other affected firms have offered similar defenses, stressing that many filings support current U.S. employees or are tied to positions that require specialized expertise. Still, the administration says the pause is a signal that it intends to review whether the PERM process is being used as intended, and to tighten accountability for employers who rely on foreign labor in ways that undermine domestic workers’ prospects.

The move comes as part of a broader policy debate about immigration rules for skilled workers, how they affect tech hiring, and the balance between attracting talent and protecting American workers. Observers say the pause could complicate future hiring plans for high-skilled roles, especially in firms with large international workforces and ongoing global expansion. The government did not specify how long the review will take or which other companies might be affected next, but officials said more guidance would follow.

What this could mean in practical terms is a potential pause on green-card track progression for foreign workers sponsored through PERM by these firms. For now, workers already in the United States under H1B status or those planning to switch roles with these employers may see delays in the formal pathway to permanent residence. Employers may need to adjust hiring timelines and revisit how they structure foreign-hire pathways to long-term residence in the U.S.

For everyday readers, the key takeaway is simple: if your job plan includes an H1B-backed path to a green card, expect closer scrutiny and possible delays as the Labor Department reviews how PERM is used by big tech companies. Officials say the goal is to ensure the system serves American workers while still allowing companies to recruit the specialized talent they say they need.