US H1-B Visa Green Card Freeze For TCS, Infosys, Cognizant, Wipro: 5 Things Indian Tech Employees Need To Know

The Donald Trump administration has suspended eight major technology companies, including Indian IT giants TCS, Infosys, Wipro, and HCL Technologies, from the US Permanent Labor Certification (PERM) program. The list also includes Cognizant, Capgemini, Microsoft, and Adobe.

The move aligns with Trump's "America First" agenda, which prioritizes domestic employment. While the suspension could disrupt green card applications for Indian tech workers, its overall impact on IT companies remains uncertain.

1. US H-1B, Green Card Crackdown

US Labor Secretary Keith Sonderling announced the suspension of Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech, and Capgemini. He said Microsoft and Adobe were also suspended amid multiple active federal investigations.

The announcement follows criticism from US Vice President JD Vance, who said the H-1B visa program, intended to help companies recruit highly skilled foreign workers for roles that cannot be filled by Americans, had become vulnerable to fraud.

"The H1-B 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. Unfortunately, the program has become rife with fraud," Vance said.

Andrew N. Ferguson, chairman of the Federal Trade Commission (FTC), echoed the administration's position, saying, "America is not a jobs program for the rest of the world-we built them for Americans."

Under the suspension, the eight companies cannot file new PERM applications, while pending applications will remain unprocessed during the suspension.

According to Sonderling, these companies collectively requested nearly three million foreign workers since 2009, received over 230,000 H-1B visa approvals, and obtained more than 100,000 permanent labor certifications.

The administration has raised concerns about potential misuse of employment-based immigration programs, with Microsoft facing particular scrutiny.

Vance alleged that Microsoft laid off 6,000 American workers in 2025 after certifying that it could not find qualified US employees. Yet, he said, the company received approval for more than 6,000 H-1B visas and filed 3,682 PERM applications, including nearly 1,000 for positions similar to those held by laid-off American workers.

Cognizant had also faced a separate suspension of its PERM filings amid a federal investigation into alleged employment-visa programme fraud.

2. What Is PERM?

PERM, or Program Electronic Review Management, is the US Department of Labor's permanent labour certification process. It is generally a key step in employer-sponsored green card applications.

In most cases, employers must obtain PERM certification from the Department of Labor (DOL) before filing an employment-based immigrant petition with US Citizenship and Immigration Services (USCIS), unless an exemption applies.

The DOL must determine that sufficient qualified, willing and available US workers are not available for the position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

PERM Eligibility Criteria

Under DOL guidelines, employers must:

Qualify as US employers, hold a valid Federal Employer Identification Number (FEIN) and have a US location where American workers can be referred for the job.

2. Obtain a prevailing wage determination from the Office of Foreign Labor Certification's National Prevailing Wage Center before filing a PERM application.

3. How Will the H-1B Visa and Green Card Suspension Affect Workers?

Tata Consultancy Services (TCS) does not expect the PERM suspension to affect its US workforce strategy or customer engagements, citing its focus on local hiring.

"We have noted the announcement by the US Government on the Permanent Labor Certification Program (PERM) and TCS will comply with any directive from the Department of Labor. Our workforce strategy in the US is anchored in hiring local talent, supported by a robust campus recruitment model. We have built a significant local workforce across 31 offices and delivery centers throughout the country," TCS said.

The company added that it did not expect the suspension to affect its workforce strategy or customer engagements.

NASSCOM also expects the impact on Indian IT companies to be limited, noting that they have reduced their dependence on H-1B visas while expanding local hiring in the US.

"The H-1B visa programme has historically played an important role in addressing short-term skill gaps in the US and it will continue to be used to address short term talent gap. However, over a number of years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring and building a strong domestic workforce in the U.S," NASSCOM said.

It added that Indian IT companies serve most Fortune 500 companies, supporting innovation and growth while creating local jobs. The number of employees transitioning from H-1B visas to permanent residency through PERM is also relatively limited, it said.

4. PERM vs H-1B Visa Difference: How Indian Tech Employees Will Be Impacted?

The H-1B is a temporary work visa that allows eligible foreign professionals to work in the US. PERM, meanwhile, is a labour certification process that typically forms a key step in an employer-sponsored green card application. A green card grants permanent resident status, not US citizenship.

Workers who already hold green cards are not affected by a suspension of new PERM applications.

However, H-1B holders at the eight affected companies who have not yet filed PERM applications could face delays in starting the green card process. Those with pending applications may also face processing disruptions.

A PERM suspension does not automatically cancel an H-1B visa or require its holder to leave the US. Workers must maintain valid immigration status and explore available options with their employers or immigration attorneys before their authorised stay expires.

Indian professionals can continue applying for US jobs, but local hiring priorities and other immigration restrictions could affect recruitment opportunities.

Earlier, the Trump administration announced a $100,000 fee for certain H-1B petitions. The status and scope of any legal challenge should be verified before publication.

"It is a fallacy to think that you can protect American workers by keeping skilled foreign workers out of the country. You think that foreign talent competes with Americans within our borders, they'll certainly compete with Americans by working abroad," Chad Sparber, director of the Lampert Institute for Civic and Global Affairs at Colgate University, told Reuters.

5. Top H-1B Visa Companies

Indians reportedly account for 71% of H-1B visa beneficiaries in the US. As of September 30, 2026, Amazon recorded 9,337 H-1B visas, followed by TCS with 4,450. Infosys and Apple accounted for 4,113 and 3,879, respectively.

Microsoft had 3,688 H-1B visas, followed by Cognizant with 3,510, HCL with 1,516, Wipro with 1,175 and Capgemini with 1,074.

Although the H-1B programme covers multiple industries, technology companies and IT services firms account for a significant share of its use, alongside sectors such as banking.