The Trump administration has expanded its crackdown on employment-based immigration by suspending several major technology and IT outsourcing companies from the US Permanent Labour Certification Programme, commonly known as PERM. The companies affected include Infosys, Tata, Wipro, HCL, Cognizant, Capgemini, Microsoft and Adobe.
The US Labour Department said it would not accept new or process pending PERM applications involving the companies. The decision could have significant implications for foreign workers seeking employer-sponsored green cards, including a large number of Indian technology professionals.
The announcement was made by US Labour Secretary Keith Sonderling alongside Vice President JD Vance and the head of the US Anti-Fraud Task Force. The administration has alleged that some companies misused employment-based visa programmes and displaced American workers.
US PERM suspension: What exactly has the Trump administration announced?
PERM, or Permanent Labour Certification, is an important step in many employment-based green-card applications in the US. Under the process, an employer generally has to establish that there are no qualified, willing and available US workers for a particular position before seeking to sponsor an eligible foreign worker for permanent employment.
The suspension means the affected companies cannot submit new applications under the programme, while applications already pending with the Labour Department will also not be processed, according to the administration.
Sonderling specifically named Cognizant, Infosys, Tata, Wipro, HCL and Capgemini while announcing the action. Microsoft and Adobe were also included in the suspension.
The Labour Department has linked the move to allegations of fraud and concerns over the use of foreign-worker programmes. However, the administration’s claims about individual companies and their impact on American workers remain allegations. The immediate measure relates specifically to participation in the PERM programme.
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Why did JD Vance target Microsoft and foreign-worker programmes?
The suspension comes amid increasingly strong scrutiny of companies that employ foreign workers while also carrying out layoffs in the United States.
Vice President JD Vance specifically criticised Microsoft, alleging that the company had laid off American workers while using foreign workers through the H-1B system. He argued that American companies should continue investing and expanding in the US but should prioritise hiring American workers.
The administration also pointed to the scale of foreign-worker applications made by the companies included in the action. Sonderling said the companies had collectively sought nearly three million foreign workers since 2009 and had received more than 230,000 H-1B approvals and over 100,000 permanent labour certifications.
The figures were cited by the administration to support its argument that the existing system had been misused at the expense of American workers.
Microsoft and other companies named in the announcement had not immediately responded to requests for comment, according to reports cited by Reuters and the Associated Press.
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What does the US PERM suspension mean for Indian IT workers?
The suspension is particularly significant for Indian technology professionals because several of the companies affected are among the largest employers of Indian-origin technology workers in the United States.
Infosys, Tata, Wipro, HCL and Cognizant have extensive operations in the US and employ professionals through different immigration pathways. The H-1B programme has historically been particularly important for Indian technology workers, who account for a substantial share of H-1B approvals.
However, the latest decision does not mean that H-1B visas have been cancelled for employees of the affected companies. The immediate measure focuses on PERM applications, which are part of the pathway to employment-based permanent residency.
An individual worker’s impact will therefore depend on the stage of their immigration case. Those whose green-card applications require a new or pending PERM certification could face delays or uncertainty, while the broader H-1B status of employees is not automatically terminated by the announcement.
The suspension is part of a wider immigration crackdown by the Trump administration. The government has also increased scrutiny of programmes involving international students and foreign workers, signalling that employment-based immigration is likely to remain a major policy focus.
For Indian IT professionals, the latest action could make an already lengthy green-card process more uncertain, particularly for employees of the companies directly named in the suspension.