The Trump administration’s reported suspension of eight major technology companies from the US employment-based green card process has raised fresh concerns among Indian professionals working in America. Microsoft, Adobe, Cognizant, TCS, Infosys, Wipro and HCL are among the firms named in the action, announced on October 8, 2026. The move reportedly targets alleged abuses of the H-1B visa system, potentially disrupting permanent residency plans for thousands of skilled foreign workers.
What Is PERM and Why Does It Matter?
PERM, or Program Electronic Review Management, is the US Department of Labor’s labour certification process for most employer-sponsored employment-based green card applications. It requires employers to demonstrate that there are insufficient qualified, available US workers for a particular position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed Americans.
After obtaining PERM certification, an employer can generally file an immigrant petition, known as Form I-140, with US Citizenship and Immigration Services (USCIS). Eligible applicants may subsequently pursue permanent residency, subject to visa availability and other requirements.
A suspension at the PERM stage can therefore obstruct a crucial step in the green card process, even when an employee holds a valid work visa.
Why Have These Technology Firms Been Targeted?
US officials have reportedly accused the companies of exploiting the H-1B programme by replacing American workers with lower-cost foreign professionals and failing to comply with recruitment and wage requirements.
However, these allegations should be distinguished from proven violations. The implications for each company will depend on the scope of the suspension, the findings of investigations and any subsequent administrative or legal proceedings.
What Does the Suspension Mean for Indians?
The decision could affect Indian professionals disproportionately because Indian nationals account for a substantial share of US H-1B workers and face significant employment-based green card backlogs.
The immediate consequences include:
· Green card applications stalled: New PERM filings and pending applications involving the affected employers are reportedly frozen, delaying progress towards permanent residency.
· H-1B visas remain valid: The suspension does not automatically cancel existing H-1B status or terminate employment. Its direct impact is on the employer-sponsored permanent residency pathway.
· Career and family uncertainty: Professionals may need to reconsider long-term plans, particularly those approaching H-1B time limits or relying on green card applications for future extensions.
· Alternative routes: Eligible individuals may explore other immigration categories, such as EB-1 or the employment-based National Interest Waiver, depending on their qualifications and circumstances. Switching employers may also be an option, but it does not automatically resolve an existing case.
How Have the Companies Responded?
Microsoft has disputed the suggestion that its H-1B filings primarily represent new foreign hires replacing American workers. The company said that approximately 80% of its H-1B applications in the previous fiscal year involved extensions or changes in status for existing employees, rather than new recruitment. It also offered to provide further information to the administration.
As of October 9, comprehensive public responses from all the affected companies had not been established. India's technology industry has also highlighted the sector's increasing local hiring and reduced dependence on overseas work visas, although the full implications of the suspension remain uncertain.
A Critical Test for US Immigration Policy
The suspension marks a significant escalation in scrutiny of skilled-worker immigration. For affected Indian IT companies, it could complicate talent management and employee retention; for Indian professionals, it threatens to prolong an already difficult journey towards permanent residency.
Ultimately, protecting domestic employment and ensuring fair recruitment are legitimate policy objectives. However, allegations must be established through transparent investigations, with companies afforded due process and workers protected from disproportionate consequences. The outcome will determine whether this action becomes a temporary compliance measure or a lasting obstacle for skilled immigrants seeking to build their futures in the United States.
(With agency inputs)
