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BOOM! Administration Shutting Down Foreign Worker Flow to Companies That Abuse Programs
Hotair ^ | 10/08/2026 | David Strom

Posted on 10/08/2026 9:30:19 PM PDT by SeekAndFind

Well, this is a nuclear bomb directed at companies that abuse the H-1B visa system and the Permanent Labor Certification Program, which converts H-1B visa holders into permanent residents.

Nothing like this has happened before at this scale, although enforcement actions on a much smaller scale have achieved the same goal. 

.@Sonderling47: "I am hereby suspending from the Permanent Labor Certification Program some of the largest IT outsourcing firms in the world — Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini — and also, due to multiple active federal investigations, @USDOL is suspending Microsoft and Adobe from the program."— Rapid Response 47 (@RapidResponse47) October 8, 2026

And what is that goal? To protect U.S. workers from abusive companies, mostly focused in the information technology world, which import cheap labor from abroad to replace perfectly capable US workers. 

It's a huge, growing problem, partly driven by companies seeking cheap labor, and in a program that imports doctors, directly caused by federal subsidies that freeze American medical students out of residency programs here in the United States. As far as I know, the administration hasn't addressed the latter yet, but this move to stop H-1B visa abuse is a step in the right direction. 

Microsoft came under the spotlight, though several IT outsourcing companies, including Tata, a well-known Indian company, were slammed just as hard. 

The Trump administration is suspending Microsoft and some other companies from seeking permanent residency for foreign workers hired through the H-1B visa program, accusing them of taking advantage of the process so that they could replace American citizens with cheaper labor from abroad.

Vice President JD Vance said Thursday that the tech giant is one of a handful of companies to be barred indefinitely from the Labor Department’s PERM program following an investigation spearheaded by the anti-fraud task force that he chairs.

That probe determined that Microsoft laid off roughly 6,000 American workers last year, while at the same time employing 6,300 non-citizens that it had brought to the US by obtaining H-1B visas for them.

“The H-1B visa is how the people get into the United States in the first place, and then a PERM program is how those employees stay,” Vance said. “There has been no company in the United States, unfortunately, that has abused the system more than Microsoft.”

You've likely read more than a little about H-1B visa abuse, and no case is clearer than Microsoft laying off 6000 American workers and replacing them with more foreign workers. For all the talk of labor shortages requiring the importation of more workers, it's hard to deny that this was pure abuse of a system that was never intended to crush American workers. 

It's supposed to bring in the Einsteins of the world, who have no American counterpart; it's not supposed to replace mid-level programmers with equivalent mid-level programmers who cost less. 

Vance downplayed the administration’s decision to punish Microsoft over accusations of fraud on the same day that it hailed the company’s achievements.

“Our message to Microsoft is not that we want to harm your company, it’s that we want your company to thrive, but we want it to thrive by employing and empowering your fellow Americans,” he said. “So we’re going to continue to support Microsoft and have a great relationship with Microsoft, but we’re also going to deny them the ability to apply for these permanent residencies until they show that they are going to get serious about putting American workers first.”

The Labor Department is also indefinitely suspending software firm Adobe and several IT outsourcing firms from the PERM program, meaning that any new or pending requests for permanent residency for their workers will not be considered.

Vance did not lay out any specific steps for the companies to regain access to the process, saying only that it wanted Microsoft and others to “change their behavior, improve their behavior and actually get better.”

Companies have all sorts of ways to subvert the hiring process and claim there are no available American workers. One favorite is to post an obscure ad in a newspaper classifieds that nobody will see, then recruit foreign workers to fill positions that few or no Americans applied for. 

I caught on to this when people started posting photos of such ads on X, wondering why the jobs weren't on the usual hiring boards. It turns out that this tactic fulfills the letter of the law, but subverts its purpose. I would assume that, in ongoing investigations, this would imply or prove that the companies conspired to avoid hiring Americans, since they made no good-faith effort to hire Americans. I have no idea whether that is enough to prosecute, but it is obviously enough for the administration to hit them with a regulatory nuke. 

Another ZERO: United Health Services in Johnson City, New York. All 14 residents listed in its 2026 entering three-year internal medicine class attended medical school abroad. Nine trained in Pakistan. Its two one-year preliminary interns also attended schools abroad. https://t.co/fNS2ZKEBKh— Natalie Winters (@nataliegwinters) October 1, 2026

Medical schools and hospitals are hiring a lot of foreign doctors, and Medicare actually pays for the medical education of many of them, too. The idea is to get doctors into underserved areas, but when combined with medical schools' DEI practices, an awful lot of Americans who should and would enter the medical workforce are frozen out. 

Something changed at Texas Health HEB/Denton. Among its current Internal Medicine residents, graduates of Pakistani medical schools make up: PGY-3: 5 of 20 = 25% PGY-2: 3 of 19 = 16% PGY-1: 13 of 21 = 62% The newest class isn’t just more international, nearly two-thirds of the entire class attended medical school in Pakistan. Maybe this is what happens when an Abbott-appointee simultaneously serves as U.S. coordinator for an initiative of Pakistan’s Ministry of Planning.— Nick Plumb (@PlumbNick) September 26, 2026

This is another example of a loophole in the immigration system that is upending our labor market and kicking Americans out of skilled industries in favor of foreign workers, and even worse, in some areas of the world, the credentials aren't worth the paper they are printed on because there is so much fraud. 

BREAKING: 97.6% of medical residents at Rochester General Hospital are foreign medical graduates. All of them hired on H1-B/J1 visa. Only 2 Americans got hired out of 82 total residents.— Expose H1B Fraud (@JobsNowPaper) September 26, 2026

I've been treated by several foreign doctors, and my experience has been almost universally positive. I've had two Indian doctors as specialists, one excellent and the other truly outstanding. I just had an Arab doctor do a biopsy on me and he did an excellent job. He'd been at the hospital almost 20 years, though. 

But that is not the point. The point is that the system shouldn't be stacked against Americans. I have no problem supplementing American doctors when the number of available Americans is insufficient to meet demand; the problem is when foreign workers substitute for native-born Americans to save a buck. 

In general, the more skilled labor doing necessary work, the better. I don't believe in the idea of a fixed pie that cannot grow, and just as AI can improve productivity by empowering skilled people to do more without making their lives worse, more doctors in places or specialties where we are short are not inherently bad. 

But that's only true when the system works as it should, and it doesn't, though a cynic would say it works as intended. 

If the intent is to give a healthier bottom line to a corporation that is indifferent to the negative effects its decisions have on our communities and country, then it's time to put them in their place by hitting back.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: h1b; immigration; visa
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1 posted on 10/08/2026 9:30:20 PM PDT by SeekAndFind
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To: SeekAndFind

We still need Mass Deportations over the next two years.


2 posted on 10/08/2026 10:33:51 PM PDT by Paladin2 (YMMV)
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To: SeekAndFind

Believe it or not, the market is so saturated with Indian IT workers, that the new ones were driving down the rates for the existing ones.


3 posted on 10/09/2026 1:49:35 AM PDT by MMusson ( )
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To: SeekAndFind

Believe it or not, the market is so saturated with Indian IT workers, that the new ones were driving down the rates for the existing ones.


4 posted on 10/09/2026 1:49:38 AM PDT by MMusson ( )
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To: SeekAndFind

H-1b don’t mend - it end it.


5 posted on 10/09/2026 2:02:40 AM PDT by central_va (I won't be reconstructed and I do not give a damn )
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To: MMusson

I am against globalist border free capitalism. A sick perverted form of capitalism.


6 posted on 10/09/2026 2:05:28 AM PDT by central_va (I won't be reconstructed and I do not give a damn )
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To: SeekAndFind

These same companies that proclaim H1-Bs are necessary to get the best talent had no problem at all finding women and minorities to fill positions when Affirmative Action and DEI were all the rage.

This is calling their bluff.

EC


7 posted on 10/09/2026 4:40:34 AM PDT by Ex-Con777 ("Journalism is about covering important stories-with a pillow, until they stop moving." ~ David Burg)
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To: SeekAndFind

It is a lot worse than is being reported. And has been for 20 years. We were sold on this, that we would find and bring over a limited number of super smart foreign workers for 3 to 6 years and then send them back to their own countries as our Americanised agents of goodwill to help their own countries rise up out of their third world squalor. It was all rainbows and chocolate covered gummy bear woke nonsense. And the legislation was written by the tech companies themselves.

Example #1:

The Baltimore City School System has over 1000 Indian/Pakistani H-1B visa holders working for them. Probably not all of them are the next Elon Musk type genius/savants one would imagine. Why would a large blue state city like Baltimore need that many white collar indentured servants? There must be whole rooms of Indians there soaking up American tax dollars sitting in their cubicles. And the vast majority of them will never go home. Most will become American hating citizens eventually, democrat voters.

Multiply this example by 1000 times and you can get a sense of what is going on here. And since they never go home (and almost all will become American citizens). The numbers are in the millions now.

Note: There are 2 Texas school systems that employ over 800 Indian/Pakistani H-1B visa holders. Don’t believe me? Look it up:

https://ohss.dhs.gov/topics/immigration/yearbook


8 posted on 10/09/2026 4:48:12 AM PDT by jroehl (And how we burned in the camps later - Aleksandr Solzhenitsyn - The Gulag Archipelago)
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To: SeekAndFind

What about the mass firings and overseas work going to India right now.

White collar jobs are tanking in our area as insurance and other firms have hired Indian managers and are moving processing and development Work to India...NOW.

APPEARS TO BE HAPPENING EVERYWHERE.

And the work is very marginal...but companies don’t care.they are gutting America.


9 posted on 10/09/2026 4:56:46 AM PDT by Chickensoup
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To: jroehl

I don’t see why local governments would need to employ H-1Bs at all.


10 posted on 10/09/2026 5:20:19 AM PDT by Brian Griffin
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To: SeekAndFind

Colleges should only be allowed to hire H-1Bs to teach foreign languages, graduate courses and do research.

All H-1Bs doing work for an educational entity should have to be paid a minimum of $50/hour.


11 posted on 10/09/2026 5:34:25 AM PDT by Brian Griffin
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