'Could cripple US tech for more than a generation': Microsoft President Brad Smith on Trump's green-card curbs

Microsoft President Brad Smith warned that Trump's green-card restrictions for skilled foreign workers could cripple the US technology sector for more than a generation. He rejected JD Vance's allegations of H-1B visa abuse, saying the curbs could push talent to other countries.

Microsoft President and Vice Chair Brad Smith has warned that the Trump administration's move to restrict green-card access for skilled foreign workers could weaken the US technology sector and push talent towards other countries, Politico reported.

In an interview with Politico's Decoded, Smith said blocking pathways to permanent residency for highly skilled immigrants could cripple the US technology industry for more than a generation. His remarks came less than a week after US Vice President JD Vance announced that the administration would bar Microsoft and seven other companies from seeking green cards for skilled foreign workers.

Smith also rejected Vance's allegations that Microsoft had abused the H-1B visa programme to avoid hiring American workers at higher salaries, describing the claims as "completely off base".

He said the US should be concerned about sending signals that could encourage talented artificial intelligence and software engineers to pursue opportunities in other countries rather than remain in the US.

Smith also argued that Microsoft's green-card applications largely concerned long-serving employees rather than new hires, attributing the situation to a lengthy backlog in processing applications. He said someone had failed to provide Vance with accurate information about the company's figures.

Microsoft defends hiring and pay practices

Smith denied that Microsoft paid foreign-born employees less than American workers. According to Politico, he said the company follows the same compensation system for all employees, irrespective of their immigration status.

He also pointed to Microsoft's domestic hiring, saying the company employed more than 9,000 US-born workers last year. Smith argued that this contribution had been overlooked in the administration's criticism of its use of skilled-worker visas.

The Microsoft executive called on the White House to reassess its position in light of what he described as a more accurate account of the company's hiring practices.

What is PERM programme

The Donald Trump-led US administration on October 8 suspended the PERM programme for certain IT companies including Microsoft, TCS, Infosys, Wipro and Cognizant among others.

The suspension bars the affected companies from submitting new PERM applications and stops the processing of pending applications, according to reports.

The Permanent Labour Certification programme, known as PERM, is a process run by the US Department of Labor that allows companies to sponsor foreign employees for US green cards, which grant permanent residency.