US suspends Microsoft, major IT firms from key green card programme

The U.S. suspended Microsoft (MSFT) and Adobe (ADBE) from the H-1B visa program, alleging abuse. Microsoft disputes claims, stating 80% of H-1B applications were for existing employees. The administration also investigates nine universities, including Harvard, Yale, and Stanford, over visa program misuse.

Congress criticized PM Modi for not protecting Indian IT firms after the US suspended eight companies (Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, Capgemini) from the PERM green card program. The US accused these firms of misusing the system, potentially affecting future green card applications. Congress suggested India could respond using laws like the Digital Personal Data Protection Act, 2023.

The US suspended Infosys, Tata, Wipro, HCL, Cognizant, and Capgemini from the PERM program, citing alleged misuse. Microsoft and Adobe were also suspended. The action impacts green card applications for Indian tech workers. H-1B approvals for major IT firms fell 40% by March 2026. The US may impose additional H-1B fees. Companies may shift hiring strategies.

The Trump administration suspended eight tech firms, including Microsoft, TCS, and Infosys, from the PERM green card process. Microsoft denies replacing US workers, while TCS expects minimal disruption. The crackdown also involves investigations into nine universities over J-1 visa fraud.

Indian equity markets rebounded on Friday, led by IT stocks after TCS reported a 15% YoY increase in net profit to ₹13,884 crore for Q2, with AI revenue crossing $3B. TCS, Infosys, HCL, and Tech Mahindra gained up to 5%. The rally occurred despite US visa restrictions, as investors focused on earnings and growth prospects. The Sensex and Nifty rose 1.16% and 1.23%, respectively. Other factors supporting the market included lower crude oil prices and a stronger rupee.

The US has frozen green card filings for Microsoft, Adobe, and six other IT firms, alleging visa abuse. Current H-1B workers can keep their status, but their path to permanent residency is blocked. Microsoft states 80% of its H-1B applications were for current employees. The freeze is part of a year-long escalation, with a $100,000 fee imposed on new H-1B petitions last year. The timing is notable as it comes before Microsoft's CEO receives a presidential award.