The US has suspended eight major IT firms, including Infosys, Tata Consultancy Services (TCS), Wipro, and Microsoft, from a key employment-based Green Card program. The move, announced on October 8, 2026, prevents these companies from submitting new applications or proceeding with pending applications under the Permanent Labor Certification (PERM) program. The decision, which comes amid increased scrutiny of employment-based immigration, has raised concerns among Indian IT professionals seeking permanent residency in the United States.
The US Green Card program suspension comes amid the Trump administration’s increased scrutiny of employment-based immigration. American officials have accused several technology companies of misusing immigration programs at the expense of domestic workers. For Indian IT professionals working in the United States, the development raises questions about their prospects of obtaining permanent residency.
Which 8 IT Companies Have Been Suspended From The US Green Card Program?
The US Department of Labor has suspended eight companies from participating in the PERM labor certification process. The companies named in the announcement are:
- Tata Consultancy Services (TCS)
- Infosys
- Wipro
- HCL Technologies
- Cognizant
- Capgemini
- Microsoft
- Adobe
US Labor Secretary Keith Sonderling announced the decision alongside Vice President JD Vance and Attorney General Todd Blanche. The department said it would stop accepting new PERM applications involving these companies and suspend the processing of applications already awaiting a decision. The action covers some of the world’s largest technology and outsourcing employers, several of which employ substantial numbers of Indian professionals in the United States. However, the suspension concerns a specific immigration certification process rather than a complete ban on these companies employing foreign workers.
Why Has The US Suspended These Companies From The PERM Program?
According to the Trump administration, the suspension is intended to address alleged misuse of employment-based immigration programmes and protect opportunities for American workers. Officials have argued that certain companies have relied on foreign workers while reducing their domestic workforce.
During the announcement, Vice President JD Vance singled out Microsoft, alleging that the company had laid off approximately 6,000 American employees in 2025 while continuing to seek immigration approvals for foreign professionals. Labor Secretary Keith Sonderling also referred to ongoing federal investigations involving Microsoft and Adobe.
These allegations are the administration’s stated justification for the action. Publicly available reporting does not establish that all eight companies have committed immigration violations, and detailed company-specific findings have not been released. The decision forms part of broader US immigration news in 2026, particularly the administration’s efforts to examine employer-sponsored immigration and the use of H-1B visas by major corporations.
What Is The US PERM Program And How Does It Work?
The US PERM program is an important stage in the Green Card process for foreign workers seeking permanent residency through employment. Administered by the Department of Labor, it allows eligible US employers to demonstrate that hiring a foreign worker permanently will not disadvantage qualified American workers.
Before obtaining PERM labor certification, employers generally need to establish that there are insufficient US workers who are able, willing, qualified, and available for the position. They must also demonstrate that employing the foreign professional will not adversely affect the wages and working conditions of similarly employed American workers.
Once the certification is approved, the employer can generally proceed with the relevant immigrant petition through US Citizenship and Immigration Services. PERM approval does not automatically grant permanent residency, but it is an essential requirement for many employment-based Green Card applications. This distinction matters because an H-1B visa and a Green Card serve different purposes. An H-1B visa permits eligible foreign professionals to work temporarily in the United States, while a Green Card grants lawful permanent resident status.
How Will The Suspension Affect Indian IT Professionals?
The most immediate concern involves Indian IT professionals who depend on their employers to sponsor permanent residency. Employees working for the affected companies may experience delays if their PERM applications are pending or have not yet been submitted. The suspension does not automatically cancel existing H-1B visas or Green Cards. Professionals holding valid temporary work visas may continue working under their existing authorization, provided they meet the applicable immigration requirements.
However, the restriction could complicate long-term residency plans. For employees who have spent years working in the United States and are waiting to progress through the employment-based immigration system, additional delays may create uncertainty around their future.
The situation is particularly relevant to Indian nationals because employment-based Green Card applications are already subject to substantial waiting periods in several categories. A delay in beginning or completing the PERM stage can therefore have consequences beyond the immediate suspension. Professionals with affected applications may need to consult their employer’s immigration team or a qualified immigration attorney to understand how the decision applies to their individual circumstances.
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What Have TCS And Microsoft Said About The Suspension?
TCS has indicated that it does not expect the PERM suspension to affect its workforce strategy or customer engagements. The company said it intends to comply with directives from the US Department of Labor and reiterated its plans to hire an additional 15,000 employees in the United States over the next five years. The company also stated that its PERM applications had been in single digits over the previous two years, suggesting that its current operations are less dependent on this particular immigration route.
Microsoft, meanwhile, has disputed the administration’s characterization of its H-1B hiring. The company said that approximately 80 percent of its H-1B applications in the previous fiscal year involved extensions or changes of status for existing employees rather than recruitment of new foreign workers. These responses indicate that the affected companies may contest aspects of the administration’s claims or emphasize their existing American workforce commitments.
Is The US Investigating University Visa Programs Too?
Alongside the PERM suspension, US officials announced an investigation into the J-1 exchange visitor program used by research scholars at several major universities. The institutions mentioned include Harvard, Yale, Stanford, and the California Institute of Technology. Vice President JD Vance alleged that certain universities were using the program in ways that could undermine wages for American researchers and graduate students.
The J-1 program permits eligible foreign nationals to participate in approved exchange activities, including research, teaching, and academic training. It is separate from the PERM labor certification system and the H-1B visa category. The investigation therefore represents another area of immigration scrutiny rather than an extension of the same PERM suspension.
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Author’s Note
The information in this article has been compiled using reports from Rediff, The Economic Times, NDTV, The Times of India, India Today, TechCrunch, and Akashvani News, along with official guidance from the US Department of Labor. These sources were used to understand the reported suspension of eight technology companies from the PERM labor certification program, the government’s stated reasons, and the potential implications for Indian technology professionals seeking employment-based green cards. The official PERM guidelines were also consulted to explain how the program works and how it differs from the H-1B visa process.
Summing Up
The US Green Card program suspension affecting Infosys, TCS, Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft, and Adobe marks a significant development in employment-based immigration policy. By stopping new and pending PERM applications involving these employers, the US government has restricted an important pathway to permanent residency for foreign professionals.
For Indian IT employees, the immediate distinction is that existing H-1B visas are not automatically canceled. The greater concern is how long the suspension will remain in effect and what it could mean for future Green Card sponsorship. Employees pursuing permanent residency should follow official immigration updates and seek guidance on their specific applications.
