Overview
- On Thursday, Oct. 8, 2026, Vice President JD Vance and Labor Secretary Keith Sonderling announced indefinite suspensions of PERM processing for Microsoft, Adobe and seven large IT outsourcers, saying the Labor Department will not accept new or process pending permanent labor certification applications for those companies.
- The administration also said subpoenas have been served and investigations opened at nine universities over alleged misuse of J‑1 exchange‑visitor visas, with the Labor Department inspector general leading the document requests.
- Officials emphasized the suspensions do not cancel existing H‑1B visas but they block the common PERM step employers use to sponsor many H‑1B workers for green cards, creating immediate uncertainty for thousands of foreign tech employees planning to seek permanent residency.
- The move builds on months of DOL inspector general probes, field checks and prosecutions and comes alongside other policy proposals such as a large OPT fee from DHS, a pattern that legal experts say will prompt litigation and administrative challenges from affected companies.
- Beyond the firms named, the action signals broader enforcement risks for employers that hire through H‑1B and J‑1 channels and could slow the U.S. STEM talent pipeline while raising questions about wage impacts, university research ties, and the future of employer‑sponsored immigration pathways.