US President Donald Trump presented Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation at the White House. The ceremony took place just hours after the administration suspended Microsoft from a programme that allows employers to sponsor foreign workers for permanent residency in the United States. The decision followed allegations by US Vice President JD Vance that Microsoft had misused the immigration system. Vance accused the company of hiring foreign workers while laying off American employees. The suspension affects the Permanent Labour Certification (PERM) programme. Employers generally need to complete this process before sponsoring eligible foreign workers for green cards under certain employment-based categories. Vance said an ongoing investigation into Microsoft's use of the programme prompted the decision. “Thanks to an ongoing investigation, we have decided to suspend the PERM programme for Microsoft,” Vance said. He added that the company could no longer use the programme to seek permanent resident status for eligible foreign employees. Microsoft defended its employment practices. The company said most of its H-1B visa applications during the previous fiscal year involved existing employees rather than new hires. “Microsoft only files H-1B petitions for those who meet the rigorous standards of this visa category,” the company said. “We pay our H-1B employees the same as any other employees doing comparable work.” Trump did not address the immigration controversy while presenting the award to Nadella. Instead, he praised the Microsoft chief's contributions to the technology sector. “For more than three decades, Satya Nadella has been a key figure in the transformation of Microsoft,” Trump said. He highlighted how Microsoft's software has helped businesses, students and consumers around the world. When reporters asked Vance about the apparent contradiction between honouring Nadella and suspending Microsoft from the programme, he said the administration would continue to support the company and maintain a strong relationship with it.

Why the US Suspended Microsoft From the PERM Programme

Vance alleged that Microsoft laid off 6,000 American workers last year while securing 6,300 H-1B visas and nearly 3,000 green cards. He argued that companies should not use immigration programmes to replace American employees with foreign workers. “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said at a White House news conference. Microsoft offered a different account of its H-1B applications. The company said around 80 per cent of the roughly 6,000 applications it submitted during the previous fiscal year involved extensions or changes to the status of existing employees. The remaining applications covered new employees and represented about 1 per cent of Microsoft's US workforce, according to the company. Microsoft also said these workers were already legally present in the country. The H-1B visa programme allows US employers to hire foreign professionals for specialised jobs. The PERM process serves a different purpose. It generally requires employers to demonstrate that qualified American workers are unavailable for a position before proceeding with certain employment-based green card applications. The suspension could disrupt future green card applications for foreign workers employed by Microsoft. However, the decision does not automatically cancel existing approved green card cases. The move has also sparked criticism from lawmakers who believe restrictions on legal immigration could harm the US technology industry. US Representative Pramila Jayapal, the top Democrat on the House Judiciary Committee's immigration subcommittee, criticised the administration's decision. “ You don’t fix a broken immigration system by taking a hammer to legal immigration,” Jayapal said in a statement. Jayapal argued that the PERM process already includes safeguards to protect American workers. She warned that targeting major technology companies could weaken the country's ability to attract skilled professionals and support innovation.

Indian IT Companies Also Face PERM Restrictions

Microsoft is not the only technology company affected by the administration's action. Vance said the restrictions also cover Adobe and several major technology and consulting firms, including Cognizant, Tata Consultancy Services, Infosys, Wipro, HCL and Capgemini. According to The Associated Press, the companies did not immediately respond to requests for comment. The suspensions could affect Indian IT professionals who rely on employer sponsorship to obtain permanent residency in the United States. However, the actual impact will depend on the scope and duration of the restrictions and the status of individual applications. The action comes as the Trump administration pursues broader restrictions on immigration programmes used by foreign professionals and international students. On Wednesday, the Department of Homeland Security proposed a $70,000 fee for international students seeking to work in the US through the Optional Practical Training (OPT) programme. OPT allows eligible international students to work in jobs related to their fields of study during or after completing their education. Graduates from certain science, technology, engineering and mathematics (STEM) programmes can qualify for an additional two years of work authorisation. Vance has also called for investigations into nine universities over their use of J-1 exchange visas. The institutions include Harvard, Yale, Stanford and the Massachusetts Institute of Technology. These developments have increased concerns among foreign professionals, international students and US companies that depend on global talent.

Trump Honours Immigrant Technology Leaders

Despite the administration's tougher immigration stance, the White House ceremony highlighted the contributions of immigrants to America's technology industry. Five of the six business leaders recognised by Trump were born outside the United States. Alongside Nadella, Trump presented the National Medal of Science to SpaceX CEO Elon Musk, Google co-founder Sergey Brin, Nvidia CEO Jensen Huang and Advanced Micro Devices CEO Lisa Su. Musk was born in South Africa, Brin in Russia, while Huang and Su were born in Taiwan. Dell Technologies CEO Michael Dell, who was born in Texas, also received the National Medal of Technology and Innovation alongside Nadella. Trump described the recipients as “national treasures” and praised their contributions to American innovation. The ceremony formed part of a White House summit promoting what the administration calls a new golden age of scientific achievement. The administration has encouraged investment in artificial intelligence and data centres as it seeks to strengthen America's position in the global technology sector. However, its latest immigration measures have raised questions about how US companies will continue to attract skilled workers from abroad while complying with tighter rules. Nadella thanked Trump in a social media post following the ceremony. He said he felt humbled to stand alongside leading figures in American innovation and expressed optimism about further technological progress and US prosperity.