Infosys, TCS, Wipro among 8 IT firms suspended from US green card programme in major H-1B crackdown
President Donald Trump-led US administration has intensified its crackdown on the US immigration system, suspending several major technology and IT outsourcing companies from the Permanent Labour Certification (PERM) programme — a key route through which employers sponsor eligible foreign workers for employment-based green cards. The companies named in the latest action include Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. The move comes amid a broader US government push to investigate alleged abuse of H-1B visas and other immigration programmes, with officials arguing that foreign-worker hiring practices could hurt American employees. US Labour Secretary Keith Sonderling announced the action alongside Vice President JD Vance and officials involved in the administration’s anti-fraud efforts.
“I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” Sonderling said, news agency PTI reported. He also announced the suspension of Microsoft and Adobe from the programme, saying the Department of Labour would not accept new PERM applications from the companies or process their pending applications.
US says hundreds of thousands of jobs affected
Sonderling alleged that the companies covered by the action had made extensive use of foreign-worker programmes over the years. “Since 2009, just these companies alone have requested almost three million foreign workers. They’ve received over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications. That’s hundreds of thousands of jobs that were taken from American workers,” Sonderling said. The administration’s action is part of a wider effort to increase scrutiny of employers that rely heavily on foreign workers. The White House has argued that parts of the H-1B system have been used by some employers and outsourcing companies to replace or undercut American workers.
JD Vance targets Microsoft over layoffs and foreign-worker hiring
Vance specifically criticised Microsoft while announcing the company’s suspension from the PERM programme. He alleged that the technology giant had laid off thousands of American workers while continuing to benefit from H-1B visas and employment-based green cards.
According to Vance, Microsoft had laid off around 6,000 US workers while benefiting from 6,300 H-1B visas and nearly 3,000 green cards. The latest action also extends beyond technology companies. Nine US universities are reportedly under investigation over alleged misuse of visa-related programmes, adding another layer of uncertainty for international students and foreign workers in the country.
What does the PERM suspension mean for foreign workers?
The PERM programme is administered by the US Department of Labour and is an important step for employers seeking to permanently hire certain foreign workers. Under the process, an employer generally has to demonstrate that there are not enough qualified, willing and available US workers for the position and that employing a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.
Once labour certification is approved, the employer can generally move ahead with an immigrant petition before US Citizenship and Immigration Services, typically through Form I-140. Therefore, for many H-1B workers PERM is an important part of the employment-based green card pathway. A company’s suspension from the programme can prevent it from filing new PERM applications and can also affect pending applications, making the route to permanent residency more difficult for eligible foreign employees.
Why the move matters for Indian IT professionals
The decision is particularly significant for Indian technology professionals because major Indian IT companies have long relied on US immigration programmes to place skilled employees in the American market. The latest suspension follows an earlier action against Cognizant’s PERM filings in September, when US authorities said they were investigating alleged fraud and possible harm to American workers. The subsequent expansion of the action to other major IT companies indicates that scrutiny of foreign-worker hiring is widening. The Trump administration has already introduced or extended several measures aimed at tightening the H-1B system. In September, the White House said it would increase scrutiny of H-1B applications in situations where there is a heightened risk of American workers being laid off.
US proposes $70,000 OPT fee for international students
The latest PERM action comes just a day after another major immigration proposal that could have implications for international students, including Indians planning to study and work in the US. The Department of Homeland Security has proposed a $70,000 fee for an F-1 international student’s initial participation in Optional Practical Training (OPT). A subsequent OPT recommendation would attract a proposed $30,000 fee. Importantly, these are proposed fees that would be paid by eligible educational institutions, rather than a fee currently charged directly to students.
OPT allows eligible international students to gain temporary work experience in the US in areas related to their studies. Students generally receive up to one year of OPT, while qualifying graduates in science, technology, engineering and mathematics fields can receive an additional STEM extension, allowing work authorisation for up to three years in total. Under the proposed rule, the school recommending a student’s OPT would be responsible for paying the applicable fee. The proposal is part of DHS efforts to combat what it describes as fraud and abuse in the OPT system and to protect US workers.
(With inputs from agencies)
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