US freezes green cards for 8 IT firms, probes 9 universities

The US on Thursday suspended permanent labor certification processing for eight major IT companies, including Microsoft, Infosys, TCS, Wipro, Capgemini, HCL, Cognizant and Adobe. The move could impact employees arriving in the US on H-1B visas who seek to apply for green cards. US Vice President JD Vance said the action was taken amid concerns over alleged misuse of the visa program. The Tump Administration has also opened probes against nine top universities, widening a crackdown it says targets fraud and protects American ‌jobs."There has been no company in the United States, unfortunately, that has ​abused the system more than Microsoft," Vice President JD Vance said. He said the company laid off 6,000 American workers last year while benefiting from 6,300 H-1B temporary worker visas ​and nearly 3,000 green cards. Vance also said nine universities, including Harvard, Yale and Stanford, would be investigated for allegedly bringing in international students to undercut American wages.

The US is suspending Microsoft and other major IT firms from a green card program for skilled foreign workers, with Vice President JD Vance citing alleged fraud and a push to prioritize American workers https://t.co/1bybgb8UCl https://t.co/zWgVkWGHgr

— Reuters (@Reuters) October 8, 2026

“There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” US Labour Secretary Keith Sonderling said at a White House press conference, with Vice President JD Vance by his side.

VIDEO | Washington DC: The US on Thursday suspended IT firms Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe from the Permanent Labour Certification Programme. The announcement was made by US Labour Secretary Keith Sonderling, with Vice President JD Vance, the head of the US Anti-Fraud Task Force, by his side. “I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” Sonderling said. He said the Department of Labour is also suspending Microsoft and Adobe from the program. “We will not accept any new or process any pending permanent labour certification applications involving these companies. “Since 2009, just these companies alone have requested almost three million foreign workers. They've received over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications,” Sonderling said. “That's hundreds of thousands of jobs that were taken from American workers,” Sonderling said. (Source: Rapid Response/X) (Full video available on PTI Videos - https://t.co/bIyFWTfmBd)

— Press Trust of India (@PTI_News) October 8, 2026

His comments came hours before Trump honored tech billionaires for their contributions to America, including Microsoft CEO Satya Nadella. Nadella once ⁠held an H-1B visa, as did Elon Musk, who was also honored, while three of the other CEOs honored are immigrants. Nadella thanked Trump for the medal, saying in a post on X ​he would continue to advance technology and drive American prosperity.Microsoft is the largest filer of PERM applications, or the permanent labor certification process, according to data from the US labor department. Under PERM, which most employment-based ​green cards require, employers must show a foreign hire will not hurt US workers' wages or jobs.
The company said in a statement that about 80% of the H-1B applications it filed in the last fiscal year were to extend or change the status of current employees, not to hire new workers. In July, the company said it would cut 4,800 jobs, or about 2.1% of its global workforce.
Under the PERM process, employers seek certification from the Department of Labor that there is no qualified, willing or available US worker for a specific job. It's a step required before filing petitions for most employment-based green cards.However, the action does not cancel H-1B visas or prevent these companies from employing H-1B workers. Instead, the suspension blocks the companies from filing new PERM applications and puts pending applications on hold for as long as the suspension remains in effect. The Indian IT firms could also face higher legal, compliance and administrative costs.
This latest move by the Donald Trump administration could have a particular impact on Indian professionals in the US, with about 37% of Indians who obtained Green Cards in FY2023 doing so through employment-based preferences -- a route in which PERM is an important step.