The US has temporarily suspended several major IT firms, including Indian giants like TCS and Infosys, from its Permanent Labor Certification (PERM) program. This move, announced by Vice President JD Vance, cites alleged abuse of the system and could significantly delay permanent residency for many foreign tech workers.
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Firms Suspended
⏳ Time Machine
How today’s news fits into the bigger picture
2005
PERM Program Implemented
The US Department of Labor implemented the Program Electronic Review Management (PERM) to streamline the labor certification process for foreign workers seeking permanent residency.
September 2025
H-1B Visa Fee Hike
The Trump administration imposed a one-time fee of $100,000 on new H-1B petitions for workers hired from abroad, as part of an enforcement drive.
October 2025-September 2026
Microsoft Leads PERM Filings
Microsoft was the largest filer of PERM applications during fiscal year 2026, with 3,161 cases decided, significantly more than Indian IT firms like TCS (513) and Wipro (523).
October 8, 2026
Suspension Announced
US Vice President JD Vance and Labor Secretary Keith Sonderling announced the suspension of 8 firms, including Indian IT giants, from the PERM program.
October 8, 2026
Nasscom Responds
Nasscom, India's IT industry body, issued a statement differentiating between immigration and skilled talent mobility, asserting Indian IT firms' reduced H-1B dependence.
Today
The US suspends several Indian and US tech firms from the PERM green card program, citing fraud.
What happens next?
Affected companies and legal entities will likely challenge the PERM suspension, and firms will re-evaluate their US workforce strategies.
The Trump administration has delivered a significant blow to the Indian IT sector and foreign workers by suspending major companies, including Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, and Capgemini, from the Permanent Labor Certification (PERM) green card program. US Vice President JD Vance, along with Labor Secretary Keith Sonderling, announced the suspension, alleging that these companies abused the H-1B visa system by displacing American workers with 'indentured servants'. The suspension means these firms cannot file new PERM applications or process pending ones, effectively halting a crucial step towards employment-based permanent residency. While existing H-1B visas are not directly affected, the move creates considerable uncertainty for thousands of Indian tech professionals seeking long-term residency in the US. Nasscom, India's IT industry body, responded by stating that immigration and skilled talent mobility are distinct issues, emphasizing Indian IT firms' reduced reliance on H-1B visas and increased local hiring.
💭 If you're wondering…
An H-1B visa is a non-immigrant visa that allows US employers to temporarily employ foreign workers in specialty occupations. A Green Card, or Permanent Resident Card, grants an individual permanent residency in the United States.
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