US suspends Microsoft from green card scheme amid H-1B visa scrutiny

Microsoft has been suspended from the federal government's green card sponsorship programme, marking a significant development in ongoing debates over employment-based immigration in the technology sector. The suspension emerges amid broader tensions between tech industry recruitment practices and policymakers concerned about the impact on domestic employment.

The action aligns with intensified criticism from US Vice President-elect JD Vance, who has publicly targeted technology companies' reliance on the H-1B visa programme. Vance has argued that such visa schemes allow corporations to hire foreign workers at lower costs, potentially displacing American employees and suppressing wage growth in the technology sector.

Microsoft, one of the world's largest technology companies, has long been among the top sponsors of employment-based immigration petitions in the United States. The suspension prevents the company from directly sponsoring foreign workers for permanent residency, representing a constraint on its recruitment capabilities.

The development reflects shifting political attitudes toward immigration policy under the incoming Trump administration. Technology industry representatives have previously defended H-1B hiring, arguing that visa programmes help address skills shortages and enable companies to remain globally competitive.

This action raises questions about whether other major technology employers may face similar restrictions, potentially reshaping how Silicon Valley and other tech hubs recruit international talent.