Microsoft hit by visa crackdown hours before Trump honours CEO

Microsoft has faced a major visa setback in the United States. The move came just hours before President Donald Trump honoured its CEO, Satya Nadella. The case has raised fresh questions about foreign workers, US jobs and the future of tech hiring.

US targets Microsoft over visa rules

As reported by NDTV, the Trump administration has stopped Microsoft from taking part in a programme that helps companies sponsor skilled foreign workers for permanent residency. The move came on Thursday, October 8, 2026, amid claims that the system had been misused. Vice President JD Vance announced the action and accused major firms of using the system in ways that hurt American workers. Labor Secretary Keith Sonderling also named Adobe and several large IT firms, including India’s Infosys and TCS.

The programme at the centre of the dispute is known as the Permanent Labor Certification Program, or PERM. It allows US employers to sponsor eligible foreign workers for green cards. A green card gives a person the right to live and work in the country permanently. The administration said the suspensions were linked to alleged abuse of the system. Officials also said several investigations were under way.

Microsoft defends its hiring record

Vance singled out the software giant during his announcement. He said the firm had cut about 6,000 US jobs while securing 6,300 H-1B visas and nearly 3,000 green cards. He argued that firms should not lay off local staff and then rely on foreign workers. Microsoft rejected the claim that its visa use showed such a pattern. It said most of its recent H-1B filings were for workers already employed by the company.

Microsoft said 80 per cent of its visa applications last year were to extend or change the visa status of current employees. The company added that the remaining filings were for people already in the US legally. These new hires made up about one per cent of its US workforce. The H-1B visa allows US firms to employ foreign workers in certain skilled jobs. Many tech companies use it to hire workers with skills that may be hard to find locally.

Trump honours Nadella amid growing tension

The timing of the action drew attention because Trump honoured Nadella on the same day. The Microsoft chief received the National Medal of Technology and Innovation at a Washington event focused on science and technology. Trump praised Nadella for his role in changing Microsoft’s products and helping businesses and consumers. He did not address the visa dispute during the ceremony.

The award came only hours after Vance’s announcement. Five of the six leaders honoured at the event were born outside the US, showing the role of immigrants in the country’s tech sector. Vance later said the government wanted Microsoft to succeed, but wanted it to employ and support more American workers. Microsoft’s team said it would provide further information to the administration.

Author’s opinion

The case shows how hard it can be to balance local jobs with the need for global talent. The allegations deserve a fair review, but clear evidence and fair rules will matter. Both workers and firms need certainty about their future.

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