Explainer-The skilled foreign tech workers’ green card program under attack from Trump
The US government has suspended several tech and IT firms, including Microsoft, Cognizant, and Capgemini, from the PERM green card program, citing alleged fraud. The suspension targets the PERM process, which allows employers to sponsor foreign workers for permanent residency. The move is part of the Trump administration's crackdown on skilled foreign labor, aiming to protect US jobs.
How this was made
The 30-second read
Why it matters
Regulatory action directly limits a key immigration pathway for skilled workers, potentially raising hiring costs and slowing project execution for affected companies.
Market read
The suspension creates immediate downside risk for large‑cap tech and consulting stocks reliant on foreign talent, while highlighting broader immigration policy risk.
What to watch
Potential for legal challenges to the suspension could mitigate long‑term impact.
Background
The Trump administration announced a suspension of PERM green‑card sponsorship for several major tech and IT services firms, citing alleged fraud and job‑replacement concerns.
Ticker impact
US government suspended Microsoft from the PERM green‑card sponsorship program.
downward pressure as the market prices in regulatory risk
Regulatory suspension directly limits a key talent pipeline; analysts typically penalize stocks for immigration constraints.
Adobe was named among firms barred from new PERM applications.
downward pressure from perceived hiring risk
Adobe relies on skilled foreign engineers; suspension could raise cost of talent and delay projects.
Cognizant is suspended from the PERM program.
downward pressure as investors factor in talent‑supply constraints
Cognizant’s large H‑1B workforce makes PERM access critical for staffing.
Infosys is listed among firms barred from PERM sponsorship.
downward pressure from perceived regulatory headwinds
Infosys depends on U.S. talent pipelines for its consulting business.
Wipro is among firms barred from the PERM green‑card program.
downward pressure from perceived talent‑supply risk
Wipro’s U.S. projects depend heavily on foreign engineers.
Market effects
Tech services and consulting sector faces heightened regulatory risk.
U.S. markets may see modest pullback in large‑cap tech and IT services.
Signals broader immigration‑policy tightening that could affect multinational hiring.
Counterpoint
If the suspension is short‑lived, stocks could rebound quickly, offering a buying opportunity on dip.
Key entities
- RegulatorU.S. Department of Labor
Issued the suspension of PERM applications for listed firms.
- Government OfficialVice President JD Vance
Publicly criticized Microsoft and other firms over foreign hiring.





