Last Updated on October 8, 2026 10:35 pm by INDIAN AWAAZ
By Our Business Correspondent / BIZ DESK
NEW DELHI: In a significant escalation of its immigration enforcement agenda, the Trump administration has suspended several leading global technology and IT services companies from participating in the United States’ Permanent Labor Certification (PERM) programme, a critical pathway used by employers to sponsor foreign professionals for employment-based Green Cards.
The move affects some of the largest employers of Indian technology professionals, including Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant and Capgemini. Global technology giants Microsoft and Adobe have also been included in the suspension list, highlighting the broad scope of the latest crackdown on employment-based immigration.
The decision, announced by US Labour Secretary Keith Sonderling, is expected to have far-reaching implications for thousands of foreign workers, particularly Indian professionals who rely on employer-sponsored residency pathways in the United States. Under the new measures, the US Department of Labor will stop accepting new PERM applications as well as processing pending cases involving the suspended companies.
Immigration Enforcement Intensifies
The action forms part of a wider effort by the Trump administration to tighten oversight of foreign-worker programmes and prioritize employment opportunities for American workers. Washington has argued that some employers have misused labour-certification procedures by claiming a shortage of qualified American workers while continuing to recruit foreign professionals.
US officials maintain that labour-certification requirements are intended to ensure that foreign workers do not displace eligible US candidates. Authorities have alleged that certain employers made questionable representations during labour-certification proceedings, although the suspensions themselves do not constitute a formal finding of wrongdoing.
The administration has increasingly linked immigration policy to domestic employment concerns, arguing that programmes such as H-1B visas and PERM certifications should be used only when genuine skill shortages exist.
Why the PERM Programme Matters
The PERM system, formally known as the Program Electronic Review Management, is administered by the US Department of Labor and represents a crucial first step in most employment-based Green Card applications.
Before obtaining labour certification, employers must demonstrate that they have tested the domestic labour market and that no qualified, willing and available American worker can fill the position at the prevailing wage level. Once certification is granted, employers can move forward with permanent residency applications on behalf of eligible foreign employees.
Industry experts note that while the latest suspension does not affect existing H-1B visa holders directly, it could significantly complicate long-term residency plans for workers employed by the affected companies. Many foreign professionals depend on their employers to initiate and complete the Green Card sponsorship process, making PERM certification a vital component of their immigration pathway.
Fresh Challenges for Indian IT Sector
The latest development is particularly significant for India’s technology services industry, which has traditionally relied on a combination of onsite US staffing and offshore delivery centres to serve American clients.
Indian IT firms are among the largest beneficiaries of US skilled-worker programmes, and any restrictions on Green Card sponsorship could affect workforce planning, employee mobility and talent retention strategies.
Analysts believe the immediate business impact may not be reflected in operational performance or client contracts, as the suspension does not revoke existing visas or prevent companies from continuing US operations. However, it introduces fresh uncertainty regarding future staffing models and long-term employee deployment.
Companies may increasingly be compelled to expand local hiring in the United States, strengthen offshore delivery capabilities from India, or redesign workforce structures to lessen dependence on immigration-linked recruitment.
Indian Professionals Face Greater Uncertainty
The implications are likely to be felt most strongly by Indian professionals already working in the United States under H-1B visas.
Many of these employees have spent years waiting for permanent residency because of lengthy country-specific Green Card backlogs. The suspension of PERM processing could further delay applications and disrupt long-term career and family planning.
Immigration specialists note that Indian nationals account for a substantial share of employment-based Green Card applicants, making them particularly vulnerable to policy changes affecting labour-certification procedures.
For thousands of technology professionals, the issue extends beyond immigration status and affects decisions related to housing, investments, family relocation and long-term employment prospects in the United States.
Microsoft Under Particular Scrutiny
Among the companies named in the announcement, Microsoft attracted special attention following remarks by US Vice President JD Vance, who cited the company’s hiring and workforce practices as an example of concerns surrounding employment-based immigration programmes.
According to figures cited by the administration, Microsoft reportedly laid off approximately 6,000 American employees in 2025 while later securing approvals for more than 6,000 H-1B visas and filing thousands of labour-certification applications.
Administration officials argue that such cases warrant closer review to ensure that American workers receive adequate opportunities before positions are offered through skilled-immigration channels.
The scrutiny comes at a politically sensitive moment for the software giant, whose Chief Executive Officer Satya Nadella remains one of the most prominent Indian-origin business leaders in the United States.
Broader Crackdown Beyond Technology
Thursday’s announcement is part of a broader policy shift aimed at increasing scrutiny across multiple immigration categories.
The administration has repeatedly expressed concerns that foreign-worker programmes may suppress wages or reduce employment opportunities for American citizens. The H-1B visa programme has remained a central focus of these debates, with policymakers arguing over the balance between protecting domestic employment and maintaining access to global talent.
Federal authorities have also expanded investigations into other visa categories, including exchange-visitor programmes and student work-authorisation routes. Recent proposals aimed at increasing the cost of participation in the Optional Practical Training (OPT) programme have further signalled Washington’s intent to tighten immigration pathways used by international students and skilled workers.
Impact on the US Technology Industry
The latest measures may have implications beyond immigration enforcement.
Technology companies have long argued that access to highly skilled global talent is essential for maintaining innovation, competitiveness and growth. Industry groups contend that shortages in advanced digital skills, artificial intelligence, cloud computing and cybersecurity cannot always be met through domestic recruitment alone.
A prolonged restriction on employment-based immigration could increase hiring costs and intensify competition for specialised talent within the US technology sector. Businesses dependent on global expertise may be forced to modify hiring patterns or shift portions of their operations to international locations.
At the same time, supporters of the administration’s approach argue that stricter oversight will encourage greater investment in domestic workforce development and create additional opportunities for American professionals.
Outlook
The US government has not specified a timeline for lifting the suspensions, suggesting that restrictions may remain in place while investigations and compliance reviews continue.
For Indian IT companies, whose revenues remain heavily dependent on the North American market, the development represents a fresh regulatory challenge at a time when the industry is already navigating slowing global technology spending, geopolitical uncertainty and evolving workforce models.
More importantly, the decision signals a broader shift in US immigration policy that could reshape the traditional pathway from H-1B employment to permanent residency. For thousands of Indian technology professionals and the companies that employ them, that pathway is becoming increasingly uncertain as Washington intensifies its focus on immigration enforcement and domestic labour-market protection.
Source note: The suspensions and allegations described above are US government actions/allegations and should not be read as final findings that the named companies committed fraud.