H-1B Visa Update: US Freezes Green Card Sponsorship for 8 Companies; Microsoft, TCS, Infosys Among Firms Affected
New Delhi, 9th October 2026: The United States has suspended the processing of new PERM applications for eight major technology and IT services companies, including Microsoft, Adobe, Tata Consultancy Services, Infosys, Wipro, HCL Technologies, Cognizant and Capgemini. The move affects labour certification filings that employers must complete before sponsoring foreign workers for permanent residency.
The decision was announced by US Labor Secretary Keith Sonderling and Vice President JD Vance on October 8. It applies to pending and new PERM labour certification applications, a mandatory process for employers seeking to sponsor foreign workers for employment-based green cards, including EB-2 and EB-3 categories.
PERM, or Program Electronic Review Management, requires employers to demonstrate that they could not find qualified US workers for the roles they want to fill with foreign nationals. The suspension means affected companies will not be able to move forward with new permanent-residency sponsorship cases during the freeze.
The US administration has framed the action as a step against alleged misuse of the H-1B and PERM systems. However, the Department of Labor has clarified that the move does not affect non-immigrant status, meaning existing H-1B visa holders and their dependents are not immediately impacted by the suspension.
For Indian IT companies, the freeze is significant because the United States remains a major market for skilled technology talent. TCS, Infosys, Wipro, HCL Technologies and other affected firms rely on foreign workforce planning for long-term projects and client requirements in the United States.
The suspension could delay permanent residency plans for thousands of Indian professionals, particularly those already working in the US on temporary visas. It may also force companies to reconsider hiring strategies, project timelines and long-term staffing plans.
The development is likely to intensify debate in the United States over skilled immigration, outsourcing and the balance between protecting American jobs and retaining global talent. For Indian technology professionals, the immediate concern is the uncertainty around green-card processing and future employment-based immigration pathways.
