US suspends green card route for Infosys, TCS, Wipro, HCL and four other tech firms

The Trump administration on Thursday announced the suspension of a key employmentbased green card process for eight major technology and outsourcing companies including Indias Infosys Tata Wipro and HCL as VicePresident JD Vance announced a sweeping crackdown on alleged visa fraudThe action also covers Cognizant Capgemini Microsoft and Adobe It prevents the companies from filing new permanent labour certification applications and halts the processing of pending applications under the programmeUS Labour Secretary Keith Sonderling announced the decision at a press conference led by Vance saying the action followed ongoing criminal and federal investigationsVice President JD Vance announces the suspension of the PERM Program for Microsoft Thanks to an ongoing investigation we have decided to suspend the PERM program for Microsoft which means they will no longer be able to take those H1Bs and apply for permanent resident status within the United States of America Now our message to Microsoft and to any other foreign or domestic corporation is quite simple We obviously want you to thrive in the United States of America We want people to invest in the United States of America particularly the American technology sector Wersquore the biggest boosters of your industry We want you to continue to grow and to employ a lot of people but we want you to employ American workers And so our message to Microsoft is yoursquore great American company but yoursquove got to hire great American workers You cannot lay off American workers and then replace them with foreign indentured servantsmdash Vice President JD Vance VP October 8 2026Due to ongoing criminal investigations led by the Department of Labours Inspector General Anthony DiEsposito who will get into this shortly I am hereby suspending from the Permanent Labour Certification Program some of the largest IT outsourcing firms in the world Cognizant Infosys Tata Wipro HCL and Capgemini Sonderling saidHe added that Microsoft and Adobe were also being suspended because of multiple active federal investigationsWe will not accept or process any pending permanent labour certification applications involving these companies he saidWhat is the PERM programmeThe Permanent Labour Certification programme commonly known as PERM is a key step for many employers seeking employmentbased permanent residence for foreign workersSonderling said the companies named in the action had collectively requested nearly three million foreign workers since 2009 According to figures he presented they had received more than 23 lakh H1B visa approvals and over 1 lakh permanent labour certificationsThe administration did not release companyspecific findings or details of the alleged violations during the press conferenceVance accuses firms of replacing American workersVance accused employers of using the H1B programme to replace American workers with lowerpaid foreign employeesThe H1B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers he saidHe singled out Microsoft alleging that the company had laid off 6000 American workers while benefiting from 6300 H1B visas and nearly 3000 green cardsVance said the administration wanted companies to change their hiring practices rather than leave the American marketAsked whether the suspension was temporary or permanent he said The suspension of PERM is gonna last as long as it needs toHe added that the administration had tools to continue the suspension indefinitely but wanted companies to improve their behaviourUS steps up enforcementThe Justice Department also announced that it was actively investigating companies suspected of favouring foreign workers over American workersAttorney General Todd Blanche said criminal prosecutions and civil lawsuits were among the possible enforcement measuresThe announcement could have significant implications for Indian technology professionals and outsourcing companies operating in the United StatesIndian IT companies have long relied on employmentbased visa programmes to deploy skilled professionals to American clients The H1B programme permits temporary employment in qualifying specialised occupations while permanent labour certification is part of a separate process through which employers may sponsor workers for permanent residenceThe suspension announced Thursday concerns permanent labour certification applications involving the named companies It does not by itself mean existing H1B visas or green cards have been cancelledWith IANS inputs