In a significant expansion of its immigration enforcement strategy, the US government has suspended several major technology corporations from the Permanent Labor Certification (PERM) process. This action prevents these firms from obtaining the Department of Labor certifications required as a preliminary step for sponsoring foreign employees for employment-based green cards. Particularly those seeking opportunities in America’s technology industry, the latest measures reflect the administration’s growing scrutiny of employment and education pathways used by foreign nationals.
The suspension targets a broad list of multinational IT services and technology companies, including Tata, Infosys, Wipro, HCL, Cognizant, and Capgemini, as well as global giants Microsoft and Adobe. US Labour Secretary Keith Sonderling confirmed the administration’s stance, stating, “We will not accept any new or process any pending permanent labor certification applications involving these companies.” Microsoft, Adobe and other IT giants also hit as US alleges misuse of immigration rules. US authorities have not announced a duration or specified when affected companies may resume filing applications.
Key Policy Developments and Related Proposals
- US proposes a $70,000 fee for foreign students seeking employment under the Optional Practical Training programme.
- The administration has proposed a $103,000 fee for skilled worker visa applications.
- The Department of Defense has officially withdrawn all bomber planes from its United Kingdom base.
- The Prime Minister of Pakistan has designated Houthi attacks on Mecca as a “red line” during United Nations proceedings.
The PERM program serves as a critical regulatory check where employers must demonstrate to the Department of Labor that no qualified or willing American workers are available to fill specific roles before a foreign national can be sponsored. Officials emphasize that this suspension is part of a broader federal push to incentivize companies to prioritize domestic hiring.
Vice President JD Vance has publicly criticized Microsoft, alleging the company misused immigration pathways to replace American staff with lower-paid international workers. During a White House briefing, Vance claimed that while Microsoft laid off 6,000 American employees last year, it simultaneously secured 6,300 H-1B visas and nearly 3,000 green cards. He characterized the current H-1B visa system as “completely broken,” arguing that such companies frequently manipulate recruitment parameters to justify hiring foreign labor. Also Read: Trump extends H-1B visa fee order as $100,000 charge faces court fight. “If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” Vance said, according to AP. “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” he added. Vance accused companies of manipulating recruitment requirements by advertising positions in ways that attracted few American applicants before seeking permission to hire foreign workers.
Impact and Regulatory Scope
While the suspension creates immediate hurdles for the permanent residency pipeline, the government has clarified that existing H-1B visas—which are temporary—are not being revoked. Furthermore, individuals who have already been granted green cards are not affected by this administrative freeze. However, the Department of Labor has not provided a definitive timeline for how long these restrictions will remain in effect or what specific criteria companies must meet to be reinstated.
Beyond the labor certification freeze, investigators are scrutinizing potential visa abuse and improper foreign influence across the higher education sector. Labor Department Inspector General Anthony D’Esposito noted that subpoenas have been issued to nine universities, including Harvard, Yale, and Stanford, as part of a wider probe into whether institutions misused programs intended for exchange visitors and international students. These allegations currently remain under investigation and have not yet been formalized as official findings of wrongdoing.
For thousands of Indian technology professionals currently working in the United States on H-1B visas, the suspension introduces significant career uncertainty. Because these workers rely on employer-sponsored paths to transition into permanent residency, the inability of their employers to process PERM applications could result in prolonged delays, impacting long-term residency plans for those within the tech sector. Indian professionals account for a large share of H-1B visa approvals.