US green card freeze could push more technology work to India, but impact remains uncertain

The Trump administration suspended Microsoft and other firms from the PERM program, accusing them of misusing it to replace U.S. workers with foreign labor. Vice President JD Vance claimed Microsoft laid off 6,000 American workers but sought 6,300 H-1B visas and 3,000 green cards. Microsoft is ranked fifth for approved H-1B visas in 2026, according to USCIS data.

The US suspended Microsoft, Adobe, and six IT firms from the PERM labor-certification program, alleging immigration rule abuses. The affected companies include Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. Labor Secretary Keith Sonderling cited concerns over systemic abuse and active federal investigations. The suspension delays green card processing for these firms but does not revoke existing visas.

Microsoft (MSFT) launched Microsoft-Decision-1, an AI model for rapid automated decisions. It handles tasks like query sorting and data verification, aiming to reduce latency in enterprise workflows. The model achieved high accuracy and speed in tests. MSFT stock rose 2.3% Friday and 3.4% for the week. The AI is already used internally, with plans to expand access. MSFT stock is up 10.3% year-to-date.

India criticized the US for suspending the Permanent Labor Certification (PERM) program for eight IT firms, including Tata Consultancy Services and Wipro, calling the move offensive. The freeze affects thousands of Indian professionals seeking permanent residency. Microsoft, one of the affected companies, stated that 80% of its H-1B visa applications were for existing employees, not new hires.

The Trump administration has suspended Microsoft (MSFT) and Adobe (ADBE) from the permanent visa program due to alleged H-1B fraud, according to Labor Secretary Keith Sonderling. The action follows a September executive order aimed at strengthening H-1B program integrity. Microsoft disputed the allegations, stating it complies with visa requirements and pays H-1B employees comparably to other workers.

The Trump administration suspended eight tech and outsourcing companies, including Microsoft and Infosys, from the PERM green-card program, blocking a key pathway to U.S. residency for foreign workers. The move does not affect existing H-1B visas but signals a broader crackdown on foreign-worker programs. The companies have collectively requested nearly 3 million foreign workers since 2009, according to Labor Secretary Keith Sonderling.