US Suspends Green Card Filings by Cognizant, TCS, Wipro and HCLTech: What Triggered the Move?

US Suspends Green Card Processing for TCS, Wipro, Cognizant and HCLTech: What It Means for Indian Employees

The United States has suspended several major IT and technology companies from the Permanent Labour Certification (PERM) programme, a crucial step in securing employment-based Green Cards. The Trump administration has linked the move to allegations of immigration fraud, wage suppression and claims that foreign workers have been hired at the expense of American employees.

US Labour Secretary Keith Sonderling announced the suspension of Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech and Capgemini. Microsoft and Adobe have also been named, extending the crackdown beyond Indian IT outsourcing companies to major US technology firms.

The decision could disrupt permanent residency plans for Indian professionals employed by these organisations, particularly those whose employers have yet to file their labour-certification applications. The immediate consequences will depend on the scope and duration of the suspension and the status of individual cases.

Why has the US suspended major IT firms?

The Trump administration says the action is intended to address alleged misuse of immigration programmes and ensure that American workers receive priority in the job market.

Sonderling accused the affected companies of contributing to an excessive reliance on foreign labour. He said the Department of Labor would work to prevent fraud and ensure that employers first consider qualified American workers before recruiting overseas.

According to figures cited by Sonderling, the companies had sought permanent residency for nearly three million foreign workers since 2009, received more than 230,000 H-1B visa approvals and obtained over 100,000 permanent labour certifications.

The labour secretary argued that these figures represented employment opportunities that should have gone to Americans. However, the numbers alone do not establish that the companies committed fraud or that foreign employees directly displaced US workers.

The suspensions come amid a wider effort by the Trump administration to tighten employment-based immigration rules and increase scrutiny of companies that recruit large numbers of overseas professionals.

What is the PERM programme?

PERM, or Program Electronic Review Management, is a labour-certification system generally used by employers sponsoring foreign nationals for certain employment-based Green Cards.

Before submitting an application, an employer typically must obtain a prevailing wage determination and complete required recruitment procedures. The process is designed to establish that hiring a foreign worker permanently will not adversely affect the wages, working conditions or job opportunities of similarly employed American workers.

Once the Department of Labor certifies the application, the employer can move to the next stage of the Green Card process, subject to other immigration requirements.

The PERM filing date generally establishes an applicant’s priority date, which determines their place in the queue for an employment-based immigrant visa, subject to applicable rules.

This is particularly significant for Indian professionals, who face lengthy waiting periods because demand for US employment-based Green Cards from India far exceeds the available annual quota.

How will the move affect Indian IT professionals?

1. New Green Card applications could be delayed

Employees whose employers have not yet filed their PERM applications could face delays in starting the permanent residency process. While the suspension applies, the affected companies may be unable to submit new applications or advance cases covered by the order.

A delayed filing can also postpone the establishment of a priority date, potentially pushing back an employee’s progress towards permanent residency.

2. India’s Green Card backlog adds to the uncertainty

Indian applicants already face substantial waiting periods under the employment-based immigration system. Annual visa limits and per-country restrictions contribute to the backlog.

The September 2026 US Visa Bulletin cited in the report listed India’s EB-2 category as unavailable for final action, while the EB-3 final-action date stood at January 1, 2014.

These dates demonstrate the challenges facing Indian applicants, although visa availability and cut-off dates can change over time.

3. Some H-1B workers could face additional complications

An H-1B visa generally allows eligible foreign professionals to work in the United States for up to six years, although extensions are possible under certain conditions.

Some workers qualify for extensions beyond the normal limit when their employment-based Green Card process has reached specified milestones. If a PERM filing is delayed, employees approaching the six-year limit could face complications in maintaining their longer-term employment plans.

The impact will vary depending on individual circumstances, including whether the employee has an existing labour certification, an approved immigrant petition or another basis for an extension.

4. Existing H-1B visas are not automatically cancelled

The PERM suspension does not automatically revoke existing H-1B visas or cancel Green Cards that have already been issued. Employees whose immigrant petitions have been approved but who are waiting for visa numbers may also be in a different position from those who have not begun the process.

Workers should check with their employers’ immigration teams or qualified US immigration lawyers to determine how the suspension applies to their cases.

PERM and H-1B: How are they different?

The H-1B programme permits US employers to hire eligible foreign professionals temporarily for speciality occupations. PERM, by contrast, is generally a labour-certification step in the employer-sponsored route to permanent residency.

Holding an H-1B visa does not automatically entitle someone to a Green Card. The permanent residency process can involve labour certification, an immigrant petition and the availability of an immigrant visa, depending on the category.

Consequently, a restriction on PERM filings can delay an employee’s Green Card plans even when their existing work authorisation remains valid.

What happens next?

The effect on Indian employees will depend on how long the suspension lasts, the status of pending applications and the outcome of the investigations. The restrictions could create fresh uncertainty for workers who have spent years waiting for permanent residency.

For now, the key distinction is that the move targets a critical stage of the employer-sponsored Green Card process. It does not automatically mean that employees of the named companies have lost their jobs, had their H-1B visas revoked or become ineligible for permanent residency.