Move could delay the permanent residency pathway for thousands of foreign workers
The United States has suspended several major Indian IT companies from the country’s Permanent Labour Certification Programme (PERM), a key route through which employers sponsor foreign workers for permanent residency, in a major setback for Indian technology professionals seeking US Green Cards.
US Labour Secretary Keith Sonderling announced on Thursday that Cognizant, Infosys, Tata, Wipro, HCL and Capgemini had been suspended from the programme. The US Department of Labour also suspended Microsoft and Adobe, citing multiple active federal investigations.
Under the order, the US government will not accept new or process pending PERM applications involving the affected companies. PERM, or Program Electronic Review Management, requires employers to demonstrate that hiring a foreign worker will not adversely affect US workers’ wages, working conditions or employment opportunities.
Breaking: US government suspends Indian firms Tata, Infosys, Wipro, HCL from sponsoring most foreign workers for green cards
Capgemini and Cognizant also suspended https://t.co/gVCoDZx0Kt
— Shashank Mattoo (@MattooShashank) October 8, 2026
US Alleges Jobs Were Taken From American Workers
Announcing the decision, Sonderling accused the targeted IT outsourcing companies of contributing to the displacement of American workers.
He said that since 2009, the companies named in the action had collectively sought permanent residency for nearly three million foreign workers, received more than 230,000 H-1B visa approvals, and obtained more than 100,000 permanent labour certifications. The administration argued that this represented hundreds of thousands of jobs that could otherwise have gone to American workers.
Vice President JD Vance also criticised the use of the H-1B system, particularly by major technology companies. He singled out Microsoft and alleged that the company had laid off about 6,000 American workers in 2025 while receiving more than 6,000 H-1B approvals and filing 3,682 PERM applications, including applications linked to positions held by workers who had been laid off.
What It Means For Indian IT Workers
The suspension could significantly affect Indian professionals employed by the targeted companies who are waiting to begin or advance through the employer-sponsored Green Card process.
PERM is generally a crucial stage before an employer can proceed with an employment-based Green Card application. A suspension therefore means that affected workers whose cases have not yet reached the required stage could face delays in obtaining a priority date and progressing towards permanent residency.
However, the action does not itself cancel existing H-1B visas. The immediate impact is on the permanent-residency pathway through the PERM process.
The development is particularly significant for Indian workers because Indians account for a large proportion of H-1B beneficiaries and face lengthy backlogs in employment-based Green Card categories. Workers approaching the six-year H-1B limit could face additional complications if their employers are unable to initiate the required labour-certification process in time.
Part Of Wider US Immigration Crackdown
The latest action comes amid a broader Trump administration push to tighten enforcement of US skilled-worker and immigration programmes.
The administration has repeatedly accused companies of misusing H-1B visas and relying on foreign workers at the expense of American employees. The PERM suspensions represent a significant escalation because they directly affect the route from temporary employment to permanent residency for workers sponsored by some of the world’s largest technology companies.
For Indian IT companies and their US-based employees, the suspension could mean prolonged uncertainty over Green Card sponsorship while the US government’s investigations and enforcement actions continue.
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