The United States has suspended eight major technology and IT services companies from participating in the employment-based Permanent Labor Certification (PERM) programme, a key step in obtaining employment-sponsored Green Cards. The announcement, made by the Trump administration on October 8, 2026, affects Microsoft, Adobe, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Cognizant and Capgemini.

US officials said the move forms part of a wider crackdown on alleged misuse of foreign-worker immigration programmes and efforts to protect American jobs and wages. Vice President JD Vance and Labor Secretary Keith Sonderling announced the action, which prevents the Department of Labor from accepting new or processing pending PERM applications involving the named companies.

What Is the US Government Alleging?

The administration has accused some companies of misusing employment-based immigration programmes while reducing their American workforce. Vance specifically criticised Microsoft, pointing to company layoffs alongside its use of foreign-worker visas.

Labor Secretary Sonderling said the companies collectively requested nearly three million foreign workers since 2009 and received more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.

These statements represent the administration's allegations and rationale for the suspensions. They should not be interpreted as proof that every company named has committed wrongdoing.

Does This Mean H-1B Visas Have Been Cancelled?

No. The distinction between H-1B visas and PERM applications is important.

  • H-1B visas: Allow eligible foreign professionals to work temporarily in the United States in specialised occupations.

  • PERM certification: Usually forms an early stage of the employer-sponsored process for obtaining an employment-based Green Card.

  • Green Card applications: The suspension can obstruct or delay a common route to permanent residency for affected workers.

The announcement does not automatically cancel existing H-1B visas. However, employees whose long-term immigration plans depend on employer-sponsored PERM certification could face uncertainty. The effect on individual cases will depend on their circumstances and any further government action.

Why Indian IT Professionals Could Be Affected

The decision has particular significance for Indian technology professionals because companies such as TCS, Infosys, Wipro, HCL Technologies and Cognizant maintain substantial US operations and employ skilled workers through international recruitment.

The suspension could disrupt Green Card sponsorship plans, create uncertainty around long-term employment in the US and complicate workforce planning for technology companies. Employees with pending PERM applications may be especially concerned because the government has said it will not process those applications while the suspension remains in effect.

The development comes amid broader US scrutiny of employment-based immigration and international exchange programmes. The duration of the suspensions and the eventual treatment of affected applications remain important questions for companies and employees.

What Happens Next?

Affected companies and workers will be watching for further guidance from the US Department of Labor. Businesses may need to review immigration sponsorship plans and communicate with employees whose Green Card processes are affected.

Workers should seek advice from qualified US immigration counsel before making decisions about their employment or visa status. The suspension concerns the PERM programme, so individuals should not assume that their existing work authorisation has automatically become invalid.