JD Vance Calls H-1B Visa Workers ‘Indentured Servants’, Accuses IT Giants of Abuse
US Vice President JD Vance has accused Microsoft and other technology companies of misusing the H-1B visa programme to replace American workers with lower-paid foreign employees, as the Trump administration intensifies scrutiny of employment-based immigration.
US Vice President JD Vance has accused major technology companies of exploiting the H-1B visa programme, describing foreign workers recruited through outsourcing firms as “indentured servants” and alleging that employers use the system to reduce labour costs.
Vance claimed H-1B workers earn around $20,000 less than American employees in comparable positions, while those recruited through foreign outsourcing firms earn approximately $48,000 less. He argued that companies were laying off US workers while bringing in lower-paid foreign employees.
Microsoft was a particular target of his criticism. Vance cited the company’s workforce reductions in 2025 and alleged that it laid off 6,000 American employees while securing more than 6,000 H-1B visas. He also pointed to 3,682 applications for permanent labour certification, with nearly 1,000 reportedly linked to positions matching jobs held by laid-off American workers.
The allegations come after the Trump administration suspended Microsoft and several other technology companies from a programme associated with employment-based green card sponsorship, amid concerns about potential misuse.
US Labour Secretary Keith Sonderling said the action also affected companies including Cognizant, Infosys, Tata, Wipro, Capgemini and Adobe. The administration has separately announced investigations into nine universities over allegations involving international students and wage competition.
The H-1B visa allows skilled foreign professionals to work temporarily in the United States. Employment-based green cards follow a separate process, often requiring employers to obtain PERM labour certification by demonstrating that qualified, available American workers cannot fill the position under the programme’s requirements.
The latest developments have intensified debate over foreign-worker recruitment, wage protections and the treatment of American employees. Vance’s claims about wage differences and company practices remain allegations rather than established findings of wrongdoing.
