Published: October 9, 2026 | Category: Technology | By Mahesh
The United States has suspended eight major technology firms from the first step on the road to an employment-based green card. Vice President JD Vance and Labor Secretary Keith Sonderling announced on Thursday that Microsoft and Adobe are barred from the Permanent Labor Certification Program, known as PERM, along with six large IT outsourcers.[1][2] The department will not accept new applications or process pending ones involving any of them.[1]
If you work in tech anywhere in the world, this one matters. The PERM suspension hits some of the biggest employers of skilled foreign workers at the very moment the industry is being reshaped by AI spending, a trend we covered in our look at Anthropic's reported losses. It also lands hard in India, because nearly three-quarters of approved visas in this area go to Indian workers, according to the Associated Press as cited by TechCrunch.[1]
What exactly was announced
Sonderling named the six outsourcing firms directly: Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.[2][6] The reports say only "Tata", so I cannot confirm which group company is meant, though Tata Consultancy Services is the best-known IT arm. He said Microsoft and Adobe were suspended because of multiple active federal investigations.[2]
The stated reasons are alleged fraud and a push to get companies to hire more Americans.[3] A Labor Department official said subpoenas have also been served on universities over J-1 visas, and Attorney General Blanche said the Justice Department is investigating companies that favour foreign workers over Americans.[2] That makes the PERM move look like part of a wider enforcement campaign, not a one-off.
What PERM is, and what the suspension does not do
PERM is run by the US Department of Labor. Under it, an employer asks the department to certify that there is no qualified, willing or available US worker for a specific job.[3] That certification is a step required before filing petitions for most employment-based green cards.[3] Companies must also advertise the job in the United States first, which Vance described as the way the system is supposed to prove a worker is needed.[5]
Here is the important distinction. A certification is not itself a green card, and the suspension does not by itself cancel existing H-1B visas.[6] What it does is block the named companies from using the labor certification that is the usual on-ramp from a temporary work visa to permanent residence.[6] Interesting Engineering notes that tech workers whose employers have started or are preparing green card applications could be affected.[7] In plain terms, people already working on H-1B visas can probably keep working, but their path to a green card through these employers just narrowed sharply.
The Microsoft argument
Vance singled out Microsoft. He said no US company has used this system more, and that Microsoft laid off 6,000 American workers last year while also obtaining 6,300 H-1B visas and almost 3,000 green cards.[5] His message, in his words, was that it is a great American company that has to hire great American workers.[3] He also argued that some firms advertise jobs, treat a lack of response as proof of need and then replace American staff with foreign workers.[5]
Microsoft pushes back. A spokesperson told TechCrunch the company believes in the strength of the American workforce and that the vast majority of its US employees are Americans.[1] It also said it looks forward to giving the administration more information.[2] The reporting I found includes no response from Adobe or from the six outsourcers, so I will not guess at their positions.
Who is most exposed
The people at the sharpest edge are employees at these eight companies who are mid-way through a green card process. Workers waiting years in the queue for permanent residence rely on their employer filing each step on time. A freeze at the first step can disrupt the rest. The Indian IT services industry, which sends large numbers of staff to US clients, is exposed too, since four of the six named outsourcers are Indian firms and the AP says most approved workers in this area come from India.[1]
Employers that are not on the list should not relax. When the government names and shames the biggest users, others often tighten their own recruitment records and advertising proof, hoping to avoid becoming the next headline. For a sense of how fast the technology industry itself is shifting, see our piece on OpenAI shelving its flagship model.
What we still do not know
The list of open questions is long. Reports do not say what happens to applications that were already certified or to later steps such as the I-140 petition. They do not say how long the suspensions will last, what would end them or whether more companies will follow. The fraud allegations have not been tested in court, and none of the companies has been named as charged in the reporting I found. Microsoft disputes the framing, and the investigations are described as active, not concluded.
What this means for you
If you are an affected worker, talk to an immigration attorney about your specific case before changing jobs or travel plans, since the details of your filing status matter and I am not able to give legal advice. If you manage hiring for a company that sponsors visas, review how complete your recruitment and advertising records are. If you follow Indian IT stocks or US tech employment, treat this as an early signal of policy direction and watch for any court challenge or clarification from the Labor Department.
Common Questions
Which companies did the US suspend from the PERM program?
The Department of Labor suspended Microsoft and Adobe, citing multiple active federal investigations, along with six IT outsourcing firms: Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Officials said the department will not accept new applications or process pending ones involving these companies.
What is the PERM program?
PERM, short for Permanent Labor Certification, is run by the Department of Labor. Employers use it to certify that no qualified, willing and available US worker exists for a specific job. It is a required step before filing petitions for most employment-based green cards.
Does this cancel existing H-1B visas?
Not by itself. Reporting says the suspension does not cancel existing H-1B visas. It stops the named companies from using the labor certification that is the usual route from a temporary work visa to a green card.
Why did the US government take this action?
Officials cited alleged fraud and said the goal is to push companies to hire more American workers. Vice President JD Vance said Microsoft laid off 6,000 American workers last year while obtaining 6,300 H-1B visas and almost 3,000 green cards. Microsoft rejects the suggestion that its hiring disadvantages Americans.
What should affected workers do now?
Speak to an immigration attorney about your specific case. Reports do not say what happens to applications already certified or to later steps such as the I-140 petition, so individual advice matters. This article is general information, not legal advice.
Sources
- TechCrunch, "US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers", October 8, 2026. Link
- Investing.com, "U.S. suspends Microsoft, Adobe, others from green card program, cites abuse", October 8, 2026. Link
- The Daily Signal, republishing Reuters, "US Suspends Microsoft, Major IT Firms From Key Green Card Program", October 8, 2026. Link
- RTE, "US suspends Microsoft from key green card programme", October 8, 2026. Link
- South China Morning Post, "US suspends Microsoft, major IT firms from green card programme", October 8, 2026. Link
- The Tennessee Star, "Trump Administration Suspends Microsoft, Adobe, and a Half-Dozen IT Outsourcers from Green Card Program", October 8, 2026. Link
- Interesting Engineering, "US suspends Microsoft, Adobe and 6 IT firms from key green card certification program", October 8, 2026. Link
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Depth Grid News Desk | depthgrid.in
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