immigration Politics
Trump Administration Suspends TCS, Infosys, Wipro and Microsoft From Green Card Programme
The PERM suspension does not automatically cancel existing H-1B visas or mean every affected employee must leave the US. Its immediate impact is on the employer-sponsored labor certification process, rather than an automatic termination of employees’ current immigration status.
Thousands of Indian technology professionals could face renewed uncertainty about their American dream after the Trump administration suspended major technology companies from a key program that sponsors foreign employees for U.S. green cards.
The US Department of Labor announced on October 8 that it would stop accepting new applications and processing pending cases under the Permanent Labor Certification Program, known as PERM, involving several major technology companies. The list includes Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, Microsoft, Adobe, and Capgemini.
The move marks a significant escalation in Donald Trump’s crackdown on skilled-worker immigration, with the administration arguing that employment-based visa programs must protect American workers and wages.
However, the government’s allegations do not establish that every company named has violated immigration rules.
For Indian professionals working in the US, the immediate concern is whether the suspension could delay their route to permanent residency.
Why Has the US Suspended Major IT Companies?
US Labor Secretary Keith Sonderling announced the restrictions as part of the administration’s broader effort to investigate alleged misuse of foreign-worker programs.
Vice President JD Vance accused some employers of prioritizing foreign workers over American employees, arguing that companies should demonstrate genuine efforts to recruit domestic talent.
JD Vance specifically criticized Microsoft, citing American job cuts alongside the company’s use of H-1B visas and employment-based Green Cards.
The administration alleges that some employers use recruitment practices that allow them to claim American workers are unavailable before hiring foreign professionals, potentially suppressing wages.
Microsoft has disputed the broader criticism of its employment practices, saying approximately 80% of its H-1B applications in the previous fiscal year involved extending or changing the status of existing employees rather than recruiting new workers.
The company also said it pays H-1B employees comparably to other employees performing similar work.
The suspension covers applications involving the named companies, although the full scope and duration of the restrictions remain important questions for affected workers.
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What Is PERM, and Why Does It Matter?
PERM is a crucial step in the US employment-based Green Card process for many foreign professionals.
Before sponsoring an eligible employee for permanent residency through most employment-based routes that require labor certification, an employer generally must show that no sufficiently qualified, available US workers are available for the position and that employing a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.
Once the labor certification is approved, the employer can generally proceed with the relevant immigrant petition and, when eligible, the employee can move towards applying for permanent residency.
Suspending PERM applications involving major employers therefore creates a potential bottleneck for workers whose Green Card cases depend on those companies.
The consequences could be particularly significant for Indian nationals, who face lengthy employment-based Green Card backlogs because of US per-country limits.
Will Indian H-1B Visa Holders Lose Their Jobs or Visas?
The PERM suspension does not automatically cancel existing H-1B visas or mean every affected employee must leave the US.
Its immediate impact is on the employer-sponsored labor certification process, rather than an automatic termination of employees’ current immigration status.
Nevertheless, the disruption could create serious complications for workers approaching the maximum period generally permitted under H-1B status.
Some H-1B holders qualify for extensions beyond the usual six-year limit when they meet specific requirements linked to pending or approved employment-based immigration cases. Delays in starting or advancing a Green Card application could make long-term immigration planning more difficult for employees who have not yet reached the necessary milestones.
The precise consequences will depend on each worker’s circumstances, existing immigration filings, and eligibility for extensions.
Affected employees should seek advice from a qualified US immigration lawyer rather than assume their visas have been canceled or their ability to remain in the country has immediately changed.
Trump’s Immigration Crackdown Goes Beyond Indian IT
The PERM suspension forms part of a wider effort to tighten enforcement of US skilled-worker immigration programs.
The administration previously introduced a $100,000 fee for certain new H-1B petitions involving workers hired from abroad. The Labor Department also launched Project Firewall to investigate potential violations of H-1B employment requirements.
The latest announcement extends scrutiny to some of the technology industry’s biggest employers.
The administration has also announced investigations into nine universities, including Harvard, Yale, and Stanford, over alleged misuse of exchange-visitor visa programs and potential effects on American workers.
These investigations are separate from the restrictions on technology companies, but together they signal a broader examination of how employers and institutions use immigration programs.
What Happens Next for Indian Technology Workers?
The immediate question is how long the PERM restrictions will remain in place and whether affected companies can resume applications after responding to the government’s concerns.
India’s technology sector has already faced uncertainty over US immigration policy, recruitment costs, and the long wait for employment-based permanent residency.
For workers employed by TCS, Infosys, Wipro, HCL Technologies, Cognizant, and the other named companies, the latest action adds another layer of uncertainty to an already complicated process.
The suspension does not mean all Indian IT professionals working in America will lose their jobs or visas. But for employees counting on employer-sponsored Green Cards, a critical immigration pathway has been disrupted at a time when Washington is intensifying its scrutiny of foreign-worker programs.
Until the government clarifies the restrictions and their duration, affected workers will need to establish how the decision applies to their individual cases.
