Trump Administration Suspends Cognizant, Microsoft and Six Other Tech Firms from US Green Card Program Over H-1B Abuse Allegations

The Trump administration announced Thursday it is suspending eight major technology and outsourcing companies from the PERM program, the federal Labor Certification process that serves as the first step for H-1B workers seeking US permanent residency. The companies barred from filing new or pending PERM applications are Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft, and Adobe. The Labor Department will no longer accept or process any PERM applications from those firms.

Labor Secretary Keith Sonderling cited "multiple active federal investigations" as the basis for suspending Microsoft and Adobe specifically. Vice President JD Vance announced the action at a White House briefing, singling out Microsoft as "the worst offender" and accusing the affected firms broadly of laying off American workers and replacing them with lower-cost H-1B visa holders, which he characterized as a form of indentured servitude.

The suspension falls hardest on the six India-based IT outsourcing firms, including Cognizant, Infosys, and Tata, which collectively sponsor thousands of workers annually for US green cards and are among the heaviest users of employment-based visa programs. Shares of Cognizant slid on the news, and Infosys and Wipro American depositary receipts fell roughly 3% following the announcement.