Frozen Green Cards, $70,000 Fees: The Human Cost of America's Skilled-Immigration Crackdown

Key points

On October 8, 2026, Vice President JD Vance and Labor Secretary Keith Sonderling suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini from the PERM labor certification program, and no new or pending applications will be processed ⁵ ⁸.
Microsoft says 80% of its roughly 6,000 H-1B filings last fiscal year were for existing employees, and that new-employee filings equal just 1% of its U.S. workforce ¹.
Separately, DHS proposed a $70,000 fee for initial Optional Practical Training and $30,000 for later periods, with comments open until November 9, and a survey cited by TIME suggests it could sharply cut the number of students trying to stay ² ¹⁴.
Immigration attorneys warn of impossible choices for families, including one Microsoft H-1B worker weighing a move home and leaving a spouse and two U.S. citizen children behind, and they expect lawsuits within days ¹³.

A Freeze Aimed at Tech

At a White House press conference, Vance announced that eight companies would be barred from the Permanent Labor Certification program, known as PERM, which employers generally must clear before sponsoring a worker for an employment-based green card ⁵ ⁷. Sonderling said the Labor Department would neither accept new applications nor process pending ones involving the companies ⁵. Besides Microsoft and Adobe, the list includes Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.

Vance singled out Microsoft, claiming it laid off 6,000 American workers last year while receiving 6,300 H-1B approvals and nearly 3,000 green cards, which he described as one and a half foreign “indentured servants” for every laid-off worker ⁵. He said the suspension would last as long as needed ⁵. Officials said the companies together sought almost 3 million foreign workers and received more than 230,000 H-1B approvals and over 100,000 permanent labor certifications since 2009 ⁵.

The suspension targets green card sponsorship, not H-1B status itself, so existing visas are not canceled ²³ ²⁶. Business Insider’s analysis found Microsoft filed more certified PERM applications than any other employer in the first three quarters of the fiscal year ¹¹.

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Microsoft's Defense and the Wage Debate

Microsoft pushed back in a blog post. It said the vast majority of its U.S. employees are Americans, that 80% of its roughly 6,000 H-1B applications were extensions or status changes for current staff, and that the rest involved people already legally in the country ¹. It also says it pays H-1B employees the same as colleagues in comparable roles ¹.

The wage question is contested. Vance said H-1B hires earn about $20,000 less than U.S. peers on average ⁴. Gizmodo noted one analysis found H-1B workers on the Deel platform had a median income of $140,000 against $130,000 for U.S. citizens in similar roles, while other research found a gap of around 16% ²¹. Critic Ron Hira argued that protections requiring employers to show Americans are not harmed have never been enforced ⁶. Former USCIS adviser Doug Rand called the move incoherent, since a green card frees workers to change jobs and negotiate pay ⁵.

Advocacy group Jobs Now, made up of U.S. citizens in big tech, celebrated the news, saying every job should be offered to an American first ⁷. The Indian foreign ministry called the “indentured servants” language deeply offensive and said Indian professionals are highly educated contributors to U.S. innovation ²⁰.

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Lives Put on Hold

The policy debate rarely captures what it means to cross an ocean for a career. Many of these workers left families and familiar places to take roles in fields where the U.S. has few qualified candidates, and they spend years in a system that ties their legal status to a single employer. Several have trained American colleagues along the way, though the sources here do not document that directly.

Immigration attorneys told Business Insider the freeze leaves a specific group in limbo: workers nearing the six-year H-1B limit ¹³. Attorney Matthew Maiona warned that someone in that position who cannot qualify for another visa category might have to leave the country ¹³. Others, such as Loren Locke, said most people can wait it out or switch jobs, since extensions are possible when green card progress has been made ¹³.

One story stands out. Attorney Kripa Upadhyay said she spoke the day before the announcement with a Microsoft H-1B employee whose spouse is also on an H-1B and whose extension was running out. The couple faced the “impossible decision” of moving home and leaving a spouse and two U.S. citizen children behind. “I have children to support,” the worker said, asking what happens now ¹³. Upadhyay expects more such calls ¹³. Immigration lawyer Tahmina Watson said that things are changing on a dime ¹³.

The effects reach beyond the U.S. Indian tech voices noted that fewer high-earning Indians in America could mean lower remittances and less investment flowing back, while Nasscom said the number of employees moving from H-1B to permanent residency through PERM is relatively limited ⁶. Attorney Hector Chichoni warned companies could lose critical talent to unaffected employers or to workers returning home ⁶.

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The Student Pipeline Under Pressure

In a separate, related development, DHS proposed new fees for Optional Practical Training, the work authorization that lets F-1 students work in jobs tied to their field of study. The proposed rule would charge $70,000 for initial OPT and $30,000 for each subsequent period, paid by the school ² ³. DHS says the aim is to fight fraud and protect U.S. workers, and a spokesperson called OPT a pipeline for cheap foreign labor ³. TIME reported that DHS acknowledged schools may pass the cost to students or employers ¹⁴. Comments are due November 9 ².

DHS says it found suspect employers and alleged fraud in OPT, and that authorizations rose from 160,627 in 2023 to 194,554 in 2024 ¹⁴. Critics counter that the program is a core reason students choose American universities. An Institute for Progress survey found 80% fewer students said they would likely try to stay under the proposed fees ¹⁴. New international enrollment fell 17% last fall, and the American Council on Education says some colleges report drops of 30% to 40% ²². Many experts expect legal challenges, noting that a $100,000 H-1B fee was struck down by a federal judge, and the administration has appealed ¹⁴ ²⁰.

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Legal Fights and What Comes Next

Attorneys expect lawsuits soon. Ted Chiappari noted that federal law lets Labor unilaterally suspend an employer from PERM for only 180 days, and debarment can last up to three years ¹³. The scope for pending cases and the suspension’s duration remain open questions ¹¹.

The politics are tangled. Hours after the announcement, Trump awarded Satya Nadella, a former H-1B holder, the National Medal of Technology and Innovation, alongside immigrant founders and CEOs such as Elon Musk, Jensen Huang and Lisa Su ²¹. Vance said the administration would keep a good relationship with Microsoft while denying it these filings until it puts American workers first ⁷. Nine universities, including Harvard, Yale and Stanford, also face J-1 visa probes ⁵.

Both sides invoke American workers. The open question is whether blunt tools protect them, or push away the skilled people who build companies, train colleagues and, in the end, hope simply to stay.

Companies mentioned: Microsoft (MSFT $535.07 ▲2.4%) • Adobe (ADBE $242.27 ▲0.5%) • Visa (V $385.45 ▲2.8%)

Primary sources

Microsoft Comment on Recent Immigration Questions (blogs.microsoft.com) – Microsoft's official blog response. It says most U.S. employees are Americans, that of about 6,000 H-1B applications last fiscal year 80% extended or changed status for existing staff, that new-employee filings were for people already legally in the U.S. and equal 1% of its U.S. workforce, and that H-1B staff are paid the same as peers. Published on blogs.microsoft.com.
Optional Practical Training Fees (federalregister.gov) – The Federal Register notice of proposed rulemaking from ICE/DHS proposing a $70,000 fee for initial OPT and $30,000 for subsequent OPT per F-1 student, to combat fraud and protect U.S. workers. Comments are due November 9, 2026, with a December 7 deadline for information collection comments (Docket ICEB-2026-0100). Published as 91 FR 64566.

Further sources

DHS Proposes Fees for Foreign Student Work Program to Protect American Jobs | Homeland Security (dhs.gov) – DHS press release announcing the OPT fee proposal. It explains how OPT works (12 months per education level, 24-month STEM extension), cites SEVP-identified fraud such as pay-to-stay schemes, says schools must pay before recommending students, and notes fees go to the Treasury. Includes a DHS spokesperson's statement. Published on dhs.gov.
Microsoft suspended from applying for green cards for H-1B workers, JD Vance says (theguardian.com) – The Guardian report on Vance's announcement. It covers his quotes, Microsoft's rebuttal, Adobe's suspension, Microsoft's 3,700 H-1B filings in 2026, and Vance's claim of a $20,000 average wage gap. It also gives advocacy groups' view that H-1B workers are tied to employers and that talent competition benefits the U.S.
Trump Admin Freezes Green Cards at Major Tech Firms, Probes Student Exchange Visas (time.com) – TIME explainer covering the eight suspended companies, Sonderling's statement, Vance's Microsoft figures, the J-1 probes of nine universities and the reactions of lawyers, Rep. Pramila Jayapal, Doug Rand, Nasscom and Zerodha's Dinesh Pai. It notes workers near the six-year H-1B limit face the greatest risk. Published by TIME.
What smart people are saying about the US suspending new PERM applications for Microsoft, Adobe, and Indian tech giants (businessinsider.com) – Business Insider roundup of expert reaction. It includes attorney Hector Chichoni on talent loss, critic Ron Hira, Doug Rand, Indian investor Dinesh Pai on remittances (about $125 billion annually) and Nasscom's view. It also explains PERM is not a visa.
Trump Administration Cuts Off Access to a Major Immigration Program for Workers at Microsoft and Adobe (wired.com) – Wired report on the suspension, noting Jobs Now's celebration, prior PERM settlements by OpenAI and Apple, Microsoft's H-1B numbers and Vance's remarks on Elon Musk and on Nadella's medal. Includes Microsoft's statement.
US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers (techcrunch.com) – TechCrunch brief on the suspension of Microsoft, Adobe and six others, with Sonderling's statement, the note that nearly three-quarters of approved H-1Bs go to workers from India, Microsoft's response and the university probes.
The Trump administration is suspending Microsoft from a green card program, alleging fraud (apnews.com) – AP News story on the suspension; only a headline was available, so it adds no detail beyond the core fact.
Trump administration says Microsoft ‘abused’ worker visa program and is cutting off access (theverge.com) – The Verge piece summarizing the PERM suspension, Vance's claims of fraud, Sonderling's figures, Microsoft's response, and the context of the administration's H-1B fee increase.
Vance says the US is suspending permanent visa residency program for Microsoft (businessinsider.com) – Business Insider report with PERM filing data: Microsoft filed 1504 certified applications in three quarters (plus 174 for LinkedIn and Activision) versus Adobe's 168. Notes unclear duration and effect on pending cases, and a 336-day average PERM processing time.
US Suspends Visa Program for Tech Firms Including Microsoft (bloomberg.com) – Bloomberg story on the suspension; only a headline was available, so no specifics are drawn from it.
The advice immigration attorneys have for Microsoft workers worried about their green cards (businessinsider.com) – Business Insider interviews with eight immigration attorneys. They advise affected workers to check status and seek counsel, expect lawsuits, and question Labor's authority (180-day suspension limit). Includes the story of a Microsoft H-1B worker facing separation from family. Part of the series H-1B Fallout: 1 Year Later.
Trump Administration Proposes $70K Fee for International Students to Work in U.S. (time.com) – TIME report on DHS's proposed $70,000 OPT fee, with background on fraud claims, authorization counts for 2023 and 2024, expected legal challenges, an Institute for Progress survey on student intentions, and critiques from Doug Rand, FWD.us and the Presidents' Alliance.
US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers to 'protect American jobs' (techradar.com) – TechRadar summary of the suspension, Vance's claims, Microsoft's rebuttal, Trump's praise of immigrant-born CEOs, and the university probes, with ACE's estimate of $40 billion in annual international student spending.
Trump Administration Suspends Microsoft, Adobe From PERM Green Card Program (mlq.ai) – MLQ.ai explainer clarifying that PERM filings, not existing H-1B visas, are targeted. It covers Vance's claims, a September 18 executive order on H-1B employers and Microsoft's response.
US suspends permanent residency program for Microsoft, Adobe and other tech companies (engadget.com) – Engadget story on the suspension; only a short excerpt was available, so it adds little beyond the main fact.
Microsoft and Adobe are suspended from H-B1 visa program, with Vance accusing the tech giants of fraud (fastcompany.com) – Fast Company story, excerpt only, on Vance's announcement and fraud accusations.
Microsoft and Adobe are suspended from H-1B visa program, with Vance accusing the tech giants of fraud (fastcompany.com) – Duplicate Fast Company listing, excerpt only, with the same content as the other entry.
Microsoft barred from sponsoring foreign workers for US residency (arstechnica.com) – Ars Technica report noting the Indian foreign ministry's objection to Vance's 'indentured servants' language, Tata's note that it made single-digit PERM applications in two years, and a federal judge's June ruling against the $100,000 H-1B fee, which is under appeal.
Trump Admin Suspends Microsoft From Sponsoring H-1B Visa Holders for Green Cards (gizmodo.com) – Gizmodo analysis with a critical angle: explains PERM versus H-1B, quotes Doug Rand on green cards freeing workers, cites wage studies (Deel median $140,000 vs $130,000, others about 16% lower) and notes Nadella's medal and the immigrant CEOs honored.
Trump administration wants schools to pay $70,000 fee for each international student in the OPT work program, as new foreign enrollment falls 17% (fortune.com) – AP-sourced Fortune report on the OPT fee, with education leaders' concerns, the 17% drop in new international enrollment, a lawsuit over Curricular Practical Training guidance, and expert predictions of court defeat.
US suspends Microsoft and seven other firms from green card programme (thenextweb.com) – The Next Web report clarifying that H-1B status and issued green cards are unaffected while employers cannot begin PERM green card processes, plus background on Cognizant's earlier September suspension and the Nadella medal timing.
Microsoft and Adobe hit with green-card suspensions as Vance accuses tech firms of sidelining American workers (techspot.com) – TechSpot report on the suspension, with Vance's claim that about 1,000 of 3,682 Microsoft PERM applications overlapped with eliminated roles, Microsoft's response, and background on the 2025 $100,000 H-1B fee.
US suspending permanent residency programme for Microsoft and Capgemini, officials say (thenextweb.com) – The Next Web piece, corrected on October 9, confirming the suspension covers pending applications. It adds context on the Labor inspector general's July fraud investigation, the OpenAI settlement, Capgemini's U.S. exposure, and the nine universities.
Trump Administration Bars Microsoft From Green-Card Sponsorship, Cites Visa Abuse (gadgetreview.com) – Gadget Review summary of the suspension and the OPT fee proposal published the same day, noting that the suspension targets green card sponsorship, not H-1B status, and that the fees could shift costs to students or employers. It stresses that the legal scope and duration were unclear.