The Trump administration has suspended green card labour certification filings involving eight major technology companies, including Infosys, TCS, Wipro and Microsoft, after announcing federal investigations into alleged visa abuse. The decision affects an important route to US permanent residency for foreign professionals, particularly Indian workers, although existing H-1B visas have not been cancelled by the order itself.
“Microsoft laid off last year, 6000 American workers at the same time the company benefited from 6300 H-1B visas and almost 3000 green cards. The proposal, announced on 7 October, would require certified educational institutions to pay $70,000 for an international student’s initial OPT recommendation and $30,000 for each subsequent recommendation. The administration has also announced investigations involving nine American universities over allegations of misuse of the J-1 exchange visitor visa programme.
It does not mean that every employee working for these companies has lost their right to remain in the United States. The administration has not announced a clear timetable for lifting the restrictions. However, comparing layoffs with immigration approvals does not, by itself, establish that foreign workers directly replaced those who lost their jobs. The restrictions were announced a day after the Department of Homeland Security proposed substantial new charges under the Optional Practical Training (OPT) programme.
The Labour Department said the restrictions were linked to ongoing federal investigations into alleged misuse of immigration programmes and practices that could disadvantage American workers. “We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said. Unfortunately, the program has become rife with fraud,” he said. If you do the math for every worker that Microsoft laid off they replace that worker with one and a half foreign indentured servants,” he said. The figures were presented by Vance as evidence of a hiring system that he said disadvantaged American employees. Labour Department Inspector General Anthony D’Esposito said subpoenas had been issued as investigators examined whether immigration arrangements had been used to suppress American wages or compromise federally funded research.
The action covers the Permanent Labor Certification Programme, commonly known as PERM, which companies use to sponsor foreign employees for employment-based green cards. The suspension prevents the department from processing pending PERM applications involving the named companies and accepting new ones. The immediate concern is for foreign professionals whose employers have started, or were preparing to start, their green card sponsorship process. Under the PERM system, employers generally have to demonstrate that suitably qualified American workers are unavailable for a particular position and that hiring a foreign worker will not adversely affect local wages or working conditions. Once the Labour Department approves the certification, employers can proceed with the relevant immigration petition through US Citizenship and Immigration Services. The latest order interrupts that process for the eight companies. However, there is an important distinction between the PERM programme and the H-1B visa system. The suspension does not directly revoke existing H-1B visas or prevent all foreign employees of the affected companies from continuing to work in the US. For professionals waiting to secure permanent residency, the suspension could mean longer delays and uncertainty over the next stage of their immigration applications. US Vice President JD Vance used the announcement to accuse major technology companies of misusing immigration programmes intended to address shortages of skilled American workers. “The H1-B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers. Vance singled out Microsoft, alleging that the company had laid off thousands of American employees while continuing to benefit from H-1B approvals and employment-based green cards. The Vice President linked Microsoft’s suspension to an ongoing federal investigation. The institutions named include Harvard, Yale, Stanford and the Massachusetts Institute of Technology. The allegations against the universities remain under investigation. For Indian technology professionals, the more immediate issue is the suspension of PERM processing at several of the companies that have traditionally sponsored foreign workers seeking US permanent residency. Employees with pending cases will now have to establish how the suspension affects their particular applications, while employers await further instructions from the Labour Department.
US Labour Secretary Keith Sonderling announced the suspension on Thursday, naming Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Capgemini, Microsoft and Adobe.
Sonderling said the companies named in the announcement had collectively made millions of requests for foreign workers since 2009. “Since 2009, just these companies alone have requested almost 3 million foreign workers. They received over 230,000 H1B Visa approvals and over 100,000 permanent labor certifications that’s hundred and thousands of jobs that were taken from a American workers,” the Labor Secretary said. OPT allows eligible students holding F-1 visas to gain practical work experience related to their studies. The programme generally permits up to 12 months of training, with an additional 24-month extension available to qualifying graduates in science, technology, engineering and mathematics. The department has invited public comments on the proposed changes until November 9, 2026.
Because of foreign recruitment, the number of visa approvals or labour certifications cannot independently establish how many American workers lost employment. Existing OPT application procedures and fees continue to apply unless a final regulation is introduced.
“That’s a scandalous system we’ve allowed in this country for far too long but thanks to the work of this task force and the empowerment of the President of the United States we are going to stop because thanks to an ongoing investigation we suspend the program for Microsoft which means they will no longer able to take those visas and apply for permanent status,” he added. The administration said its objective was to make employers give greater priority to hiring American workers. “Optional Practical Training was never meant to be a back door into the American workforce, a subsidy for cheap labor, or a prize for those who game the system,” the spokesperson said.
Attorney General Todd Blanche also warned companies against discriminatory recruitment practices. The figures were supplied by the administration. Unlike the PERM suspensions, the proposed OPT fees have not taken effect. Under the proposed rules, educational institutions would be responsible for paying the fees, although they could seek to recover the cost from students or employers. A DHS spokesperson defended the proposal. “DHS is upskilling OPT to require foreign students to justify their worth to employers. American workers should not have to compete against a program that has been turned into a pipeline for cheap foreign labor.
“This announcement today should send and does send a strong signal to every single employer in the United States that the Trump Administration will not tolerate discrimination against American workers.
