Trump Administration Freezes Green-Card Program for Microsoft, Adobe and Major IT Firms

On October 8, 2026, the US suspended eight companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, Capgemini, Microsoft, and Adobe, from the PERM program, halting new and pending green card applications. The move follows allegations of fraud in H-1B and PERM programs, with the labor department citing 3 million requested workers and 100,000 certifications since 2009. Microsoft faced specific accusations of laying off Americans while hiring foreign workers.

Karnataka Minister Priyank Kharge stated that the US suspension of the Permanent Labour Certification Programme for IT firms may increase operating costs for Indian companies, complicate employee retention, and reduce onsite deployment flexibility. However, it could also accelerate the growth of Global Capability Centres in India, boosting demand for senior tech professionals and strengthening India's role in product development and innovation.

The US government has suspended major tech companies, including Microsoft, Adobe, and several Indian firms, from the PERM program, which sponsors foreign workers for green cards. Vice President JD Vance accused these companies of fraud and displacing US workers. The move impacts thousands of foreign workers, many of whom are Indian nationals. Microsoft disputed the claims, stating most H-1B visas were for existing employees. The suspension could delay permanent residency for affected workers.

The US Labor Department suspended eight tech firms, including Infosys, TCS, Wipro, HCL, Microsoft, and Adobe, from the PERM program. The suspension halts new and pending applications for these companies, which collectively requested nearly 3 million foreign workers since 2009. Data shows they averaged about 13,500 approved H-1B visas annually. Vice President Vance highlighted Microsoft's layoffs and simultaneous visa applications.

The Trump administration suspended Microsoft and other tech companies from a green card program, accusing them of visa fraud. Microsoft disputes the claims, stating most of its H-1B applications were for current employees. The suspension is part of a broader effort to review foreign worker programs. Microsoft (MSFT) and others named are under scrutiny for their hiring practices.

The US suspended Infosys, TCS, Wipro, HCL, Cognizant, Capgemini, Microsoft, and Adobe from the PERM labor certification program, affecting green card processing for foreign workers. The move aims to scrutinize hiring practices and protect American jobs. Microsoft, which laid off 6,000 US workers, disputes allegations of misusing visas. The suspension may impact staffing plans for these companies, which collectively sought nearly 3 million foreign workers since 2009.