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US Freezes Green Card Process at Major IT Companies: Why Indian Workers Are Worried

10 Oct, 2026 08:03 IST

The United States government has suspended eight major technology companies from the Permanent Labour Certification (PERM) programme, a key step in the employment-based Green Card process. The decision has raised concerns among Indian IT professionals working in the US, as it could delay their plans to obtain permanent residency.

The companies affected include Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant and Capgemini. The US Department of Labour has stopped accepting new PERM applications from these companies and processing their pending applications while the suspension remains in effect.

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Why Has the US Suspended These Companies?

The decision comes amid the Trump administration’s efforts to increase scrutiny of foreign-worker programmes. US officials have alleged that some companies have relied on foreign workers while American employees faced layoffs.

Vice President JD Vance and other officials have raised concerns about the use of H-1B visas and employment-based immigration programmes. However, these are allegations by the administration and should not be treated as proof of wrongdoing by every affected company or employee.

What Is PERM and How Does It Help Workers?

PERM stands for Program Electronic Review Management. It is generally an important step employers must complete before sponsoring eligible foreign employees for employment-based Green Cards under the EB-2 and EB-3 categories.

During this process, employers must demonstrate that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers. Once the labour certification is approved, the employer can generally proceed with an immigrant petition.

With the suspension in place, affected companies cannot move forward with new or pending PERM applications while the restrictions remain active.

Why Are Indian IT Employees Worried?

Many Indian professionals spend years working in the US on H-1B visas while waiting for permanent residency. The Green Card process can offer greater long-term stability and make it easier to plan their careers and family lives.

The suspension could delay employees whose PERM applications are pending or prevent others from beginning the process through their current employers. Workers approaching the usual six-year H-1B limit may face additional uncertainty, depending on their immigration status and eligibility for extensions.

However, the suspension does not automatically cancel existing H-1B visas or require affected employees to leave the US. Previously approved immigration petitions are also not automatically cancelled by this announcement.

What Are the Companies Saying?

TCS has said that it does not expect the suspension to materially affect its workforce strategy or client engagements. The company also stated that its PERM applications had been in the single digits over the previous two years.

The broader impact on the IT industry is expected to depend on how long the restrictions remain in place and whether the affected companies challenge the decision.

What Happens Next?

The duration of the suspension remains uncertain. Indian professionals working for the affected companies will need to understand how the decision applies to their individual immigration cases.

For employees waiting to begin the Green Card process, the move could mean further delays. Those with pending applications or approaching visa-extension deadlines may need to seek advice from a qualified US immigration lawyer before making major career or immigration decisions.

The development adds to the uncertainty surrounding employment-based immigration in the US, particularly for Indian technology professionals who rely on employer sponsorship to secure permanent residency.

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