US suspends India tech giants Tata, Infosys, Wipro from green card process

The Trump administration has suspended several major Indian IT companies, including Tata, Infosys, Wipro and HCL, from a key labour certification programme used in employment-based green card applications, in a sweeping crackdown on alleged immigration fraud that could disrupt permanent residency applications for thousands of foreign technology workers.

The action, announced on Thursday, also targets global technology giants Microsoft, Adobe, Cognizant and Capgemini, according to Reuters.

US Labour Secretary Keith Sonderling said the government would stop accepting new applications and processing pending cases involving the companies under the Permanent Labor Certification programme, commonly known as PERM.

“We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.

The PERM programme allows employers to demonstrate that no qualified and available American workers can fill certain positions before sponsoring foreign employees for permanent residency.

The suspension is the latest move by President Donald Trump’s administration to tighten employment-based immigration rules and encourage companies to recruit more American workers.

The decision could have significant implications for Indian technology professionals, many of whom work in the United States on H-1B visas and rely on employer sponsorship to obtain green cards.

Indian IT companies have long been major participants in the US technology services market, employing thousands of professionals in software development, consulting and other specialised roles.

The companies named in Thursday’s announcement include Tata, Infosys, Wipro, HCL, Cognizant and Capgemini, alongside Microsoft and Adobe.

While the suspension affects a critical stage of the employment-based green card process, it does not automatically cancel existing H-1B visas or green cards already issued to employees.

The government has not specified how many workers could be affected or how long the restrictions will remain in place.

PERM stands for Permanent Labour Certification. It is a US Department of Labour process that employers generally must complete before sponsoring foreign workers for certain employment-based green cards.

Which companies have been suspended?

Eight major companies were named:

What happens to pending applications?

The Labour Department says it will stop processing pending PERM applications involving these companies and will not accept new ones during the suspension.

Will existing H-1B visas be cancelled?

No automatic cancellation has been announced. H-1B visas are temporary employment visas, while PERM is part of the process for obtaining permanent residency.

What about workers who already have green cards?

The announcement does not revoke green cards already granted.

How long will the suspension last?

US authorities have not announced a duration or specified when affected companies may resume filing applications.

Why does this matter for Indians?

Indian professionals account for a large share of H-1B visa approvals. Workers employed by the affected companies who are seeking employer-sponsored permanent residency could face delays or uncertainty.

Vice-President JD Vance singled out Microsoft, accusing the technology giant of exploiting immigration rules to replace American workers with lower-paid foreign employees.

Speaking at a White House news conference, Vance alleged that Microsoft had laid off 6,000 American workers last year while obtaining 6,300 H-1B visas and nearly 3,000 green cards.

“If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” Vance said, according to AP.

“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” he added.

Vance accused companies of manipulating recruitment requirements by advertising positions in ways that attracted few American applicants before seeking permission to hire foreign workers.

The allegations have not been established as findings of wrongdoing against the companies.

Under the PERM system, employers seeking permanent residency for foreign workers must first obtain certification from the US Department of Labor.

They generally must demonstrate that there are no qualified, willing and available American workers for the positions and that employing foreign workers will not adversely affect wages and working conditions.

Once labour certification is approved, employers can proceed with the next stages of the employment-based green card process.

The suspension means the named companies cannot currently move forward with new or pending PERM applications, potentially delaying permanent residency plans for employees who depend on employer sponsorship.

However, PERM is distinct from the H-1B programme, which allows employers to hire foreign professionals temporarily in specialised occupations.

The announcement was part of a wider immigration crackdown that also targeted leading American universities.

Vance said nine universities, including Harvard, Yale and Stanford, would face investigations over allegations that they had misused programmes allowing international students and exchange visitors to enter the United States.

Labor Department Inspector General Anthony D’Esposito said subpoenas had already been issued as investigators examined potential visa abuse and improper foreign influence.

The action comes a day after the administration proposed a $70,000 fee for universities recommending international students for employment under the Optional Practical Training programme.

The proposed fee, which has not yet taken effect, would add another major obstacle for international students hoping to gain work experience in the United States after graduation.

The latest measures reflect the administration’s growing scrutiny of employment and education pathways used by foreign nationals, particularly those seeking opportunities in America’s technology industry.

— With inputs from Reuters and AP