Visa Fraud Strike Team Launched: Microsoft and Adobe Blocked From PERM, and What H-1B Workers Should Do Now

The visa fraud strike team announced on October 8, 2026 is the sharpest escalation yet in the Trump administration’s campaign against abuse of foreign worker visas. At a Washington press conference, Vice President JD Vance said Microsoft and Adobe have been suspended from the Permanent Labor Certification Program, known as PERM, which is the first step most employers take to sponsor a worker for an employment-based green card. Labor Secretary Keith Sonderling said Cognizant, Infosys, Tata, Wipro, HCL and Capgemini are also barred from submitting new applications, and that pending applications from the eight companies will not be processed. Labor Inspector General Anthony D’Esposito announced the strike team and said investigations since Vance’s anti-fraud task force began have contributed to 171 indictments, 203 convictions and 80 arrests.

For workers, the question is simple and urgent: what happens to a green card case that is already in the pipeline? The administration has not published a detailed answer in the coverage reviewed for this article. Vance said the suspension will last “as long as it needs to” and that officials have tools to extend it indefinitely. Microsoft disputes the fraud claim, saying it files H-1B petitions only for people who meet the visa’s standards and pays them the same as comparable colleagues. Separately, the Labor Department is investigating J-1 visa practices at nine universities. We’ll be updating this article monthly as new details, court filings and agency guidance arrive.

Visa Fraud Strike Team
Visa Fraud Strike Team

Visa Fraud Strike Team Key Dates and Highlights

ItemDetail
Announcement dateOctober 8, 2026
Announced byVice President JD Vance, with Labor Secretary Keith Sonderling, Attorney General Todd Blanche and Labor Inspector General Anthony D’Esposito
New bodyVisa fraud strike team, tied to the administration’s Anti-Fraud Task Force
Program suspendedPERM, the labor certification step for employment-based green cards
Companies namedMicrosoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini
Effect on the companiesNo new PERM filings, and pending applications not processed
Length of suspensionOpen ended, according to Vance
Enforcement results cited171 indictments, 203 convictions, 80 arrests, more than $1 billion identified for taxpayers
J-1 investigationsHarvard, Yale, Stanford, Brown, University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT
Vance’s Microsoft figuresAbout 6,000 U.S. layoffs last year against 6,300 H-1B visas and nearly 3,000 green cards

What Is the New Visa Fraud Strike Team?

The visa fraud strike team was announced by the Labor Department’s Office of Inspector General. The inspector general already investigates fraud against the foreign labor certification programs, including the H-1B program and the PERM green card track, and the employers, lawyers and labor brokers who file false applications. Officials describe the strike team as a way to concentrate that work and move faster on cases that involve fraud and human trafficking.

Its parent effort is the Anti-Fraud Task Force that Vance has been asked to lead. The Justice Department is a partner. Attorney General Todd Blanche said the department is actively investigating companies that favor foreign workers over Americans and called that conduct a violation of public trust. The Labor Department’s inspector general also works with the Justice Department’s anti-trafficking teams on labor trafficking cases tied to Labor programs.

Why Microsoft Was Singled Out

Vance said no company has abused the system more than Microsoft. His central argument was arithmetic. He said Microsoft laid off about 6,000 American workers last year while benefiting from roughly 6,300 H-1B visas and almost 3,000 green cards. He said he wanted to be careful with the data and checked it on stage. He also described the replacement workers in sharp terms and alleged their wages are far below the average for American citizens.

Microsoft pushed back in a statement to ABC News. The company said most of its U.S. employees are Americans, that it only files H-1B petitions for people who meet the visa’s rigorous standards, and that its wages are among the highest of all H-1B filings. It said it pays H-1B employees the same as others doing comparable work. These are the two sides of a factual dispute, and no court has ruled on it.

There was a notable contrast in timing. Hours after the announcement, President Trump presented the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella. Vance acknowledged the contradiction, calling Microsoft a great American company and saying the administration will keep supporting it while denying it permanent residency applications until it shows it will put American workers first.

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What the PERM Suspension Means?

PERM is the Department of Labor’s Permanent Labor Certification Program. In most employment-based green card cases, the employer must first show the department that it tested the U.S. labor market and could not find a qualified, willing American worker at the prevailing wage. Only after the department certifies that can the employer file an immigrant petition with U.S. Citizenship and Immigration Services. Vance summed it up by saying the H-1B is how people enter and PERM is how they stay.

Blocking a company from PERM therefore freezes the first step of the green card path for that company’s sponsored workers. The practical effects, based on what officials announced, are these. The eight named companies cannot submit new PERM applications. Applications already pending at the Labor Department will not be processed. What officials have not clearly addressed is the status of workers who already hold an approved PERM or an approved immigrant petition. Do not assume those cases are safe or unsafe until you hear it from your employer’s immigration counsel or from published agency guidance.

Which Companies Are Blocked From PERM?

CompanyReported status
MicrosoftSuspended from PERM
AdobeSuspended from PERM
CognizantBarred from new filings, pending cases not processed
InfosysBarred from new filings, pending cases not processed
Tata (outsourcing arm)Barred from new filings, pending cases not processed
WiproBarred from new filings, pending cases not processed
HCLBarred from new filings, pending cases not processed
CapgeminiBarred from new filings, pending cases not processed

Adobe had not responded to ABC News at the time of that report. Several of the other firms are large outsourcing companies that bring in many H-1B workers for client projects. If your employer is on this list, or if you are placed at a client site through one of these firms, ask HR and counsel in writing how your case is affected.

How Many H-1B Workers and Green Card Applicants Could Be Affected?

Officials have not given a total for affected workers. Vance’s own figures for Microsoft, 6,300 H-1B visas and almost 3,000 green cards, give a sense of scale for a single company. Across eight firms, the number of people with pending or planned green card cases could be in the tens of thousands, but that is an inference, not an announced count, so treat it with caution.

The ripple effects may reach beyond the named companies. Staffing firms, clients that rely on outsourced engineers, and universities that sponsor researchers may all review their own filings. Immigration lawyers commonly advise that a government crackdown leads to more document requests and slower reviews even for employers that are not targeted.

The J-1 Probe: Nine Universities Under Investigation

The Labor Department’s inspector general called the J-1 investigation historic. Subpoenas have been served and investigations opened at Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT, according to the announcement. D’Esposito framed it as a question of institutions breaking the law to save money and exposing American research to a foreign adversary. The universities named have not been shown here to have admitted wrongdoing, and an investigation is not a finding of guilt.

J-1 is an exchange visitor category used for researchers, scholars, students and trainees. It is separate from H-1B, but the administration is treating both as part of one foreign worker integrity push. Researchers and postdocs on J-1 status should keep their paperwork current and watch for notices from their university’s international office.

How We Got Here: H-1B Scrutiny in 2026

This announcement did not come from nowhere. The administration has spent the past year tightening foreign worker programs and immigration benefits. Vance has led an anti-fraud effort that the inspector general says has produced more than a hundred indictments and convictions. Federal courts have also been active. Recent reporting describes a judge striking down a policy that had suspended immigrant visas for 75 countries, and a lawsuit by mayors and states over new green card restrictions. These disputes are separate from the PERM suspension, but they show that immigration policy is changing quickly and often being tested in court.

The suspension of named companies from a Labor Department program is unusual because it targets employers by name instead of changing a rule for everyone. Legal observers will watch whether companies challenge it, what legal authority the department relies on, and whether the administration publishes written criteria for when a suspension ends.

What H-1B Workers Should Do Now?

This is general information, not legal advice. A licensed immigration attorney can tailor it to your case.

First, find out whether your employer is affected and where your case stands. Ask for your PERM, I-140 and I-485 status in writing. Second, gather your documents now: passport, I-94, approval notices, pay stubs, W-2s, employment verification letters and the dates of your H-1B stay. Third, check your six-year clock. The calculator file named above estimates your limit and the filing date that can matter for extensions. Fourth, ask your attorney about backup options such as a different sponsor, a cap-exempt employer, or another visa category if your case is stuck. Fifth, do not quit or change jobs without advice, because moving employers can reset steps in the green card process.

Employers should review their recruitment records, wage documentation and layoff histories. Where an employer lays off workers in the same occupation as a sponsored role, the compliance risk goes up, and the government has now shown it is paying attention to that pattern.

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H-1B Six-Year Limit and PERM Timing Calculator

Use the calculator file. Enter your H-1B start date, the days you spent outside the United States, your green card progress and whether your employer is on the list. It estimates your six-year limit, the date by which filing generally needs to be on file for one-year extensions, and flags the suspension warning. It uses no outside scripts. It is an estimate only, because extension rules are technical.

H-1B Six-Year Limit and PERM Timing Calculator

Check how much H-1B time you have left and the PERM filing date that can matter for extensions.

Educational estimate, not legal advice. Rules for extensions beyond six years are technical. Confirm with an immigration attorney.

How to Apply: Where a Green Card Case Starts Today

For workers whose employer is not suspended, the process is unchanged on paper. The employer files for a prevailing wage determination, runs the required recruitment, and files the PERM application through the Labor Department’s system. After certification, the employer files Form I-140 with USCIS. When your priority date is current, you or your employer files Form I-485 to adjust status, or you go through consular processing.

For workers at the eight named companies, a new PERM cannot be filed for now. Options to discuss with counsel include waiting for further guidance, moving to an employer that is not suspended, or pursuing a category that does not need PERM, such as a self-petitioned category for people who qualify.

Processing Time: How Long Will This Take?

No official timeline for the suspension exists. Vance said it lasts as long as needed. For context, the usual PERM process takes many months before the I-140 even begins, and green card waiting periods depend on country of birth and category, with some applicants waiting years or decades. A suspension therefore adds uncertainty to a long process. Expect more requests for evidence and slower reviews while the strike team works.

Payment Schedule: Fees and Costs to Plan For

Cost itemWhat to know
PERM filingThe Labor Department charges no filing fee, but the employer pays attorney and advertising costs, and by law the employer must bear PERM costs
Form I-140Filed with USCIS, with fees set by USCIS and paid by the employer
Form I-485Filed with USCIS, with fees paid by the applicant
Attorney feesVary widely by firm and complexity

No payment from the government goes to workers under this action. The costs above are the ones to keep records of. If a suspension leaves you waiting, ask your employer whether it will reimburse or refile costs.

Common Mistakes to Avoid

Do not rely on social media posts for case status. Do not assume your employer is unaffected because it is not on the list, since subcontracted placements can complicate things. Do not discard old pay records. Do not sign documents you do not understand. Do not leave the United States without checking your travel and re-entry risks if your status is in flux. And do not forget your own deadlines, such as the six-year limit and any extension filing date.

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Official Websites and Resources

ResourceUseLink
Department of Labor foreign labor certificationPERM and H-1B informationhttps://www.dol.gov/agencies/eta/foreign-labor
Department of Labor Office of Inspector GeneralFraud reporting and investigationshttps://www.oig.dol.gov
Flag Data and PERM case statusCheck PERM case statushttps://flag.dol.gov
USCISForms, fees and case informationhttps://www.uscis.gov
USCIS Case Status OnlineCheck receipt number statushttps://egov.uscis.gov/casestatus/landing.do
myUSCIS account loginManage your applicationshttps://my.uscis.gov
USCIS H-1B pageRules for specialty occupation workershttps://www.uscis.gov/working-in-the-united-states/h-1b-specialty-occupations
Department of State visa bulletinPriority dateshttps://travel.state.gov
Justice DepartmentInvestigation and enforcement newshttps://www.justice.gov
American Immigration Lawyers AssociationFind an immigration lawyerhttps://www.aila.org

Check each address before you publish, because agencies change their pages and I have not verified every link.

FAQs About Visa Fraud Strike Team

What is the visa fraud strike team?

It is a new enforcement group announced by the Labor Department’s inspector general on October 8, 2026 to investigate fraud and trafficking tied to H-1B, PERM and related programs.

Which companies were blocked from PERM?

Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

What does the PERM suspension mean for pending cases?

Officials said pending applications from the named companies will not be processed. Guidance for approved cases was not detailed.

How long will the suspension last?

Vance said it will last as long as it needs to and could be extended indefinitely.

Is Microsoft accused of fraud?

Vance accused the company of abusing the system. Microsoft denies wrongdoing and says it pays H-1B employees the same as comparable colleagues.

Does this affect H-1B workers who are not at those companies?

Not directly, but employers across the sector may face more scrutiny and slower reviews.

Which universities face J-1 investigations?

Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT.

What is PERM in immigration?

It is the Labor Department process in which an employer shows no qualified U.S. worker is available at the prevailing wage, usually the first step of an employment-based green card.

Can I still get a green card if my employer is suspended from PERM?

Can I still get a green card if my employer is suspended from PERM?

What happens to my H-1B if my green card case stalls?

Your H-1B status continues until its end date. Extensions beyond six years depend on specific rules tied to green card progress.

Does the suspension cancel my visa?

Nothing announced cancels existing H-1B visas, but ask your employer and counsel.

How do I check my PERM case status?

Use the Labor Department’s online system with your case number, or ask your employer’s lawyer.

Are other companies likely to be added?

Officials said investigations are ongoing and did not rule it out.

Where can I report visa fraud?

The Labor Department’s Office of Inspector General runs a hotline and online reporting for fraud involving foreign labor programs.

Conclusion

The visa fraud strike team marks a turning point in how the government polices the H-1B and green card system. Microsoft, Adobe and six large outsourcing firms are blocked from PERM, the Labor Department is investigating nine universities over J-1 practices, and officials say more action may follow. Much remains unclear, including how long the freeze lasts and what happens to workers mid case. Companies deny wrongdoing, and no court has ruled. Use the calculator, gather your records, ask your employer for written answers, and speak to an immigration attorney before making any big decision.

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