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Trump Administration Suspends TCS, Infosys, Wipro From US Green Card Programme; Key Details

Posted on 9th Oct 2026 12:20 pm by rohit kumar

The Donald Trump administration has suspended major Indian IT companies, including Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Cognizant, from the US Permanent Labor Certification (PERM) programme. The action also covers Capgemini, Microsoft and Adobe, marking a significant escalation in the US government's scrutiny of employment-based immigration programmes.

 

Announced on October 8, 2026, the move means the US Department of Labor will stop accepting new and processing pending PERM applications involving the affected companies. The administration has cited alleged misuse of immigration programmes and concerns about protecting American workers.

 

The decision could complicate green-card sponsorship for some foreign professionals employed by these companies. However, the suspension is specifically related to the PERM programme and does not automatically cancel existing H-1B visas. 

 

Why Has the US Suspended Indian IT Companies?

 

US Vice President JD Vance and Labor Secretary Keith Sonderling announced the action amid allegations that certain companies had used employment-based immigration programmes in ways that disadvantaged American workers.

 

The administration named Cognizant, Infosys, Tata Consultancy Services, Wipro, HCLTech and Capgemini, alongside Microsoft and Adobe. Officials said the suspension would remain in place while the government scrutinises the companies' use of the programme.

 

According to Reuters, the Labor Department said the companies had collectively sought nearly three million foreign workers since 2009 and had received more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications. These figures were cited by officials as part of the administration's case for stricter scrutiny.

 

JD Vance's Allegations Against Microsoft

 

Vance singled out Microsoft, alleging that the company had laid off approximately 6,000 American employees while benefiting from thousands of H-1B visa approvals and green cards.

 

He cited figures of around 6,300 H-1B visas and nearly 3,000 green cards in arguing that the company's use of foreign-worker programmes deserved closer examination.

 

The allegations have drawn attention to the debate over whether employers are using skilled-worker immigration programmes appropriately. Microsoft pushed back, saying that most of its H-1B applications in the previous fiscal year involved extending or changing the status of existing employees rather than recruiting new workers. The company also said it pays H-1B employees comparably to other employees performing similar work. 

 

The claims made by government officials should be distinguished from proven findings of wrongdoing. The suspension and investigations do not, by themselves, establish that every affected company violated immigration law.

 

What Is the PERM Programme?

 

PERM stands for Permanent Labor Certification. It is a US Department of Labor process generally used by employers seeking to sponsor eligible foreign workers for permanent employment in the United States.

 

Under the process, employers must generally demonstrate that there are not enough qualified, willing, able and available US workers for the position and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

 

After labor certification is approved, an employer can generally file an immigrant petition, commonly Form I-140, with US Citizenship and Immigration Services. The worker must then meet the applicable requirements for the next steps in the employment-based immigration process. 

 

PERM vs H-1B: What Is the Difference?

 

The H-1B programme allows eligible US employers to employ foreign professionals in qualifying specialty occupations on a temporary basis. PERM, by contrast, is a labour-certification process commonly used in employment-based green-card sponsorship.

 

The distinction matters because the new action concerns the permanent labor certification process, not a blanket cancellation of H-1B visas.

 

For affected employees who are pursuing employer-sponsored permanent residency, a PERM suspension could delay or disrupt the green-card process. The consequences will depend on their individual immigration status, the stage of their application and the details of the government's action. 

 

What Does the Suspension Mean for Indian IT Employees?

 

Indian professionals working in the United States for the affected companies may face uncertainty if they depend on employer-sponsored green cards.

 

Potential consequences include:

PERM processing delays: New applications and pending applications involving the affected employers are subject to the suspension.

Green-card uncertainty: Employees relying on PERM may need to reassess their timelines with their employers and immigration lawyers.

Possible implications for some H-1B workers: Delays may be particularly relevant to workers approaching the usual H-1B time limit, although individual circumstances and applicable extension rules matter.

No automatic cancellation of all work visas: The announcement does not mean that every H-1B holder working for these companies must leave the United States.

 

Affected employees should seek case-specific guidance from their employer's immigration team or a qualified US immigration lawyer rather than assume that their existing visa or employment has automatically become invalid. 

 

TCS Responds to the US PERM Suspension

 

On October 9, Reuters reported that TCS did not expect the suspension to have a material impact on its workforce strategy or client engagements. The company said its PERM applications had been in the single digits over the previous two years and reiterated plans to hire an additional 15,000 employees in the United States over the next five years.

 

TCS said its US workforce strategy primarily focuses on local hiring, supported by campus recruitment, limiting its reliance on the PERM process. Its response suggests the immediate operational impact may vary considerably between companies, depending on how extensively they use the programme. 

 

What Happens Next?

 

The US Department of Labor's suspension creates uncertainty for employees seeking permanent residency through the affected companies. The practical impact will depend on how long the restrictions remain in place, the progress of any investigations and whether the government changes its position.

 

For now, employees should distinguish between temporary work authorisation and permanent residency sponsorship. The PERM action affects an important route to employment-based green cards, but it should not be interpreted as a blanket cancellation of H-1B visas or an automatic termination of employment.

 

The issue is likely to remain closely watched by Indian IT companies, their US-based employees and professionals planning to pursue employment-based permanent residency.

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