US Suspends Major Indian IT Firms from PERM Green Card Programme

The United States has suspended several major Indian IT companies from the Permanent Labor Certification (PERM) programme, a key step in the employment-based Green Card process.

The US Department of Labor has also stopped accepting new applications and processing pending PERM applications involving the affected companies. The move is part of a broader crackdown by the Trump administration on foreign-worker programmes that officials say may disadvantage American employees.

US Labor Secretary Keith Sonderling announced the decision on October 8 alongside Vice President JD Vance. The companies named include Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Microsoft and Adobe were also suspended from the programme.

Why did the US suspend the companies?

Sonderling claimed that since 2009, the companies involved had requested nearly three million foreign workers. He said they had received more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.

The US administration alleges that some companies have misused foreign-worker programmes and displaced American workers. The suspension will remain in place while the government examines alleged fraud and compliance issues involving the companies.

Vice President JD Vance has also criticized the use of skilled-worker visa programmes, arguing that they should not be used to reduce wages or replace American employees.

Vance specifically targeted Microsoft, claiming that the company laid off around 6,000 US workers in 2025 while receiving more than 6,000 H-1B approvals during the same year. Microsoft, however, said around 80% of its H-1B filings were related to extensions or changes of status for existing employees.

What does it mean for Indian IT professionals?

PERM is an important stage for employers seeking to sponsor eligible foreign workers for employment-based Green Cards. The suspension could therefore delay the permanent residency process for foreign professionals whose applications are linked to the affected companies.

Indian technology professionals on H-1B visas could be particularly affected because Indian workers make up a large share of H-1B beneficiaries.

However, the suspension does not automatically cancel existing H-1B visas. The immediate action is focused on stopping new PERM filings and processing pending permanent labor certification applications involving the affected employers.

NASSCOM responds

India’s technology industry body NASSCOM has responded to the decision, saying Indian IT companies have reduced their dependence on H-1B visas in recent years while increasing local hiring in the United States.

NASSCOM has also argued that immigration and short-term mobility of skilled workers should be treated as separate issues. According to the organization, the H-1B programme has played an important role in helping US businesses address short-term shortages of specialized talent.

Tata Consultancy Services, meanwhile, said the PERM suspension is unlikely to significantly affect its workforce strategy or client operations. The company said it has filed only a limited number of PERM applications in the past two years and relies increasingly on local hiring in the US.

Part of a broader US immigration crackdown

The latest action comes as the Trump administration continues to tighten rules around immigration and foreign-worker programmes, citing the protection of American jobs as a key objective.

Because Indian professionals account for a significant share of H-1B workers, changes to the US immigration system are likely to remain closely watched by India’s technology industry and thousands of Indian professionals working in the country.

The PERM suspension could therefore have implications beyond individual Green Card applications, potentially intensifying the wider debate over H-1B visas, foreign skilled workers and the future of immigration in the US technology sector.