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US Suspends Microsoft, TCS, and Six Others From Green Card Program

Telugu Americans News Service
Oct 8
4 min read

Updated: Oct 9


WASHINGTON - The Trump administration on Thursday suspended eight major technology companies, including Microsoft, Tata Consultancy Services (TCS), Infosys and Wipro, from a crucial US employment-based green card certification program, in a sweeping immigration enforcement action that could disrupt permanent residency plans for thousands of foreign technology professionals, including Indian workers.


The suspension, announced by Vice President JD Vance and Labor Secretary Keith Sonderling, prevents the companies from submitting new applications or obtaining decisions on pending applications under the Permanent Labor Certification program, commonly known as PERM.


The eight companies affected are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.


The administration alleges that technology companies have misused employment-based immigration programs in ways that disadvantage American workers. The allegations have not been established through publicly disclosed final findings against all eight companies.


Green Card Processing Halted for Eight Companies


Announcing the decision, Sonderling said the Department of Labor would stop accepting new permanent labor certification applications involving the named companies and suspend processing of applications already pending.


PERM certification is a critical step for many foreign professionals seeking employment-based permanent residency in the United States.


Under the program, employers generally must demonstrate that there are no qualified, available and willing US workers for the position being offered to a foreign national and that employing the foreign worker will not adversely affect American workers' wages and working conditions.


The suspension does not automatically cancel existing H-1B visas or green cards. However, it could prevent affected employers from advancing certain employment-based green card sponsorship cases, creating additional uncertainty for workers already facing lengthy immigration backlogs.


J.D. Vance
J.D. Vance

Microsoft Faces Particularly Sharp Criticism


Vice President Vance singled out Microsoft, alleging that the company had relied heavily on foreign workers while laying off American employees. Vance said Microsoft laid off approximately 6,000 American workers in 2025 while receiving thousands of H-1B approvals and submitting thousands of PERM applications.


He alleged that nearly 1,000 applications involved positions comparable to those held by laid-off workers.


The administration presented those figures and the alleged overlap between layoffs and immigration filings. They do not, by themselves, establish that specific American employees were unlawfully replaced.


Sonderling said Microsoft and Adobe were being suspended amid multiple active federal investigations. Microsoft and Adobe had not immediately responded to requests for comment reported by Reuters. TCS declined to comment, while several other affected companies had not provided immediate responses.


Indian IT Companies Among Hardest-Hit Employers


The inclusion of TCS, Infosys, Wipro, HCL Technologies and Cognizant makes the action particularly significant for Indian technology professionals in the United States. These companies have historically been major users of the H-1B program, which allows US employers to hire qualified foreign professionals in specialty occupations.


Indian nationals account for a substantial majority of approved H-1B petitions, making changes to employment-based immigration especially consequential for Indian workers and their families.


Sonderling alleged that the companies targeted by the government had collectively sought to employ nearly three million foreign workers since 2009 and had received more than 230,000 H-1B approvals and 100,000 permanent labor certifications.


He argued that the use of these programs had deprived Americans of employment opportunities. However, the administration's cumulative figures do not independently establish how many American jobs, if any, were displaced unlawfully.


What the Decision Means for Indian and Telugu Professionals


For Indian technology workers, including professionals from Telangana and Andhra Pradesh employed by the affected companies, the suspension could have serious implications for long-term immigration planning. Many skilled workers enter the United States on H-1B visas and subsequently rely on employer sponsorship to pursue permanent residency.


The consequences depend on the stage of an individual's immigration process.

  • Pending PERM applications: Applications involving the suspended employers will not be processed under the announced restrictions.

  • New green card sponsorship: The affected companies cannot submit new PERM applications while the suspension remains in effect.

  • Existing H-1B workers: The announcement does not automatically terminate valid H-1B status or employment authorization.

  • Approved PERM certifications: The announcement does not clearly establish whether previously approved certifications will face additional restrictions.

  • Workers awaiting green cards: Employees whose cases depend on pending or future PERM certifications could experience delays or interruptions in their permanent residency plans.


For Indian professionals already waiting years for employment-based green cards, an interruption at the labor certification stage could add another obstacle.

The announcement also leaves important questions unanswered, including how long the suspensions will last and whether affected employers can challenge the restrictions.


Nine Leading Universities Face J-1 Visa Investigations


In a separate but related development, Vance announced investigations into nine prominent American universities over alleged misuse of the J-1 exchange visitor visa program. Institutions identified in reporting include Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology.


The J-1 program allows eligible foreign nationals to participate in approved educational and cultural exchange activities, including academic research and teaching.


The administration alleges that some universities have used the program to employ foreign researchers at wages that undermine opportunities for American graduate students and researchers.


Labor Department Inspector General Anthony D'Esposito said investigators had issued subpoenas and would examine potential visa abuses and other compliance concerns.

The investigations could be relevant to Indian doctoral researchers, postdoctoral scholars and visiting academics, although no blanket suspension of J-1 visas for Indian nationals was announced. The allegations against the universities remain under investigation.


Part of Broader US Immigration Crackdown


The latest action follows a series of Trump administration initiatives aimed at tightening oversight of employment-based immigration. In September 2025, the Department of Labor launched Project Firewall, an enforcement initiative focused on potential abuses of the H-1B program. The administration also introduced a $100,000 payment requirement for certain new H-1B petitions involving workers hired from outside the United States.


The October 8 announcement extends that enforcement approach to PERM labor certification, a critical stage in the employment-based permanent residency process.

For Indian technology professionals, the immediate concern is not the automatic loss of existing immigration status but the potential interruption of employer-sponsored green card processing. With no publicly confirmed timeline for lifting the suspensions, affected workers and employers face uncertainty over when their applications may move forward.

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