TCS, Infosys, Wipro, HCL, Cognizant Among 8 Firms Suspended From US Green Card Process

The Trump administration has suspended eight major technology and IT companies from the Permanent Labor Certification (PERM) program, a required early step in most employer-sponsored green card applications. The move, announced October 8, 2026, directly affects thousands of foreign tech workers—a large share of them Indian professionals—who rely on their employers to sponsor their path to permanent US residency.

Which Companies Are Affected

The suspended companies fall into two groups:

• Indian IT and consulting firms: Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini (a French firm with major India operations)
• US tech firms: Microsoft and Adobe

The US Department of Labor will not accept new PERM applications from these companies and will not process applications already pending for as long as the suspension remains in effect.

What Is PERM, and Why It Matters

PERM stands for Permanent Labor Certification. It isn't a visa itself; it is a regulatory process employers must complete with the Department of Labor before sponsoring a foreign worker for an employment-based green card. The employer must demonstrate that there are no qualified, willing, and available American workers for the role, and that hiring a foreign worker will not adversely affect the wages or working conditions of similarly employed US workers.

Without the ability to file or process PERM applications, these eight companies cannot initiate or advance the green card sponsorship process for foreign employees through this channel.

What the Administration Says

Officials, led by Labor Secretary Keith Sonderling alongside Vice President JD Vance and the administration's Anti-Fraud Task Force, stated that the action responds to systemic abuse of US immigration programs and harm to American workers.

According to the administration, the eight companies have collectively requested nearly 3 million foreign workers since 2009, received more than 230,000 H-1B visa approvals, and obtained more than 100,000 permanent labor certifications.

Microsoft was singled out specifically. Vance accused the company of laying off American workers while continuing to obtain H-1B approvals and green card certifications for foreign talent. Microsoft responded that roughly 80% of its H-1B applications in the past fiscal year were for existing employees already working at the company rather than new hires.

Officials noted that Microsoft and Adobe were suspended due to multiple active federal investigations, while the Indian IT firms were cited as some of the largest users of these immigration programs. Cognizant had already faced a separate suspension of its green card filings in September amid a probe into possible employment-visa fraud.

What This Does Not Do

It is worth clarifying the specific boundaries of this order, as initial coverage has created widespread confusion:

• It does not cancel existing H-1B visas.
• It does not revoke green cards that have already been issued.
• It does not represent a blanket ban on Indian nationals or tech workers; it is strictly an administrative suspension targeting PERM filings across these eight specific companies.

What It Means for Affected Workers

For employees at these eight companies, the practical impact depends on their stage in the immigration pipeline:

• Pending Filings: Workers whose PERM applications are currently pending with the Department of Labor will see those applications frozen indefinitely, with Vance stating the suspension will last "as long as it needs to."
• Unfiled Cases: Employees whose employers have not yet submitted a PERM application face an immediate block on starting the green card journey through their current company.
• Six-Year H-1B Caps: H-1B visa holders generally face a six-year limit on their status unless an employment-based green card application is already underway, creating severe timeline pressure for workers nearing that threshold.

Industry Response

The tech sector and industry bodies have pushed back against the sweeping suspension:

• TCS Statement: TCS responded on October 9 stating that its PERM applications were in single digits over the past two years, expecting no material impact on its workforce strategy or client engagements, and reiterated plans to hire 15,000 local US workers over five years.
• Nasscom: India's premier technology industry association emphasized that immigration compliance and skilled talent mobility must be treated as distinct issues, cautioning against conflating legitimate skilled worker programs with broader fraud enforcement.

Why This Matters

This action marks a sharp escalation in regulatory pressure on cross-border corporate operations. Much like how regulatory friction and protectionist disputes can disrupt major market entries—as seen when Elon Musk accused oligarchs of blocking Starlink's India launch—cross-border labor policies carry high-stakes geopolitical and economic friction.

For Indian software engineers who have historically treated the PERM and H-1B pipeline as a reliable pathway to permanent residency, the move reinforces that corporate immigration tracks remain exposed to sudden policy shifts.

Frequently Asked Questions

Does this cancel my existing H-1B visa?
No. This action does not cancel valid H-1B visas or revoke issued green cards. It strictly halts new and pending PERM filings from the eight named companies.

Which companies are suspended?
Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Capgemini, Microsoft, and Adobe.

How long will the suspension last?
The administration has characterized it as indefinite, pending the outcome of ongoing compliance investigations.

Does this affect all Indian IT professionals in the US?
No. It applies only to the eight named employers. PERM processing for other corporate sponsors continues under normal Department of Labor guidelines.

What should affected employees do next?
Consult directly with your company's internal immigration counsel or legal department to evaluate individual priority dates, visa expiration timelines, and alternate filing strategies.

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This suspension injects acute uncertainty for thousands of professionals whose residency timelines are tied to these corporate sponsors. While targeted rather than industry-wide, the disruption for individual engineers and enterprise talent planning remains substantial.

Sources: The Indian Express, Times of India, The Wire, The Statesman, LiveMint. Information is accurate as of October 9, 2026 and may be updated as the situation develops.