US government suspends green card sponsorship for foreign employees of Indian companies
Major Indian companies including Tata, Infosys, Wipro and HCL, among others, have been accused of abusing immigration laws, Reuters reports.
Washington (newscilia.com Latest. October 08, 2026) The US government has suspended green card sponsorship for foreign employees of Indian companies. Indian companies include Tata, Infosys, Wipro and HCL, among other major IT companies. These companies have been accused of abusing immigration laws.
The US government has suspended Indian tech giants Tata, Infosys, Wipro and HCL from a key labor certification program used in the green card process, for alleged abuse of immigration laws, according to media reports. The program is used in employment-based green card applications.
The move is part of a broader crackdown on alleged immigration fraud, which could affect the permanent residency, or green card, applications of thousands of foreign technology workers.
According to Reuters, the move, announced on Thursday, also includes global technology companies Microsoft, Adobe, Cognizant and Cape Gemini.
US Labor Secretary Keith Sonderling said the government would stop accepting new applications and processing pending cases involving these companies, a process that is carried out under the Permanent Labor Certification Program (PERM).
Sonderling said the government will not accept any new applications for permanent labor certification related to these companies nor will it process pending applications.
The decision could have significant implications for Indian technology professionals, many of whom work in the US on H-1B visas and rely on their employer’s sponsorship to obtain green cards.
Indian IT companies have long played a major role in the US technology services market, employing thousands of professionals in software development, consulting and other specialized fields. The companies named in Thursday’s announcement include Tata, Infosys, Wipro, HCL, Cognizant and Cape Gemini, as well as Microsoft and Adobe.
Simply put, this decision means that ongoing or new PERM labor certification processes for green cards by these companies may be halted for the time being, which could affect foreign employees of these companies, especially Indian tech workers.
According to Reuters, the Trump administration has expanded its crackdown on immigration policies for skilled foreign workers, halting processing of some green card applications from Microsoft, Adobe and major IT outsourcing companies, while launching investigations into nine leading universities, including Harvard, Yale and Stanford.
According to Reuters, the US administration said the measures were aimed at addressing alleged fraud in visa programs and concerns about harming American jobs.
The two measures are being described as the broadest crackdown yet on immigration programs for skilled foreign workers, which could affect the common path for thousands of foreign technology workers to obtain permanent residency, or green cards. The administration has also warned leading research universities, while the measures come at a time when the Trump administration is also establishing close ties with leaders of the same technology companies.
According to US Labor Secretary Keith Sonderling, the decision to stop processing green card applications will apply to Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Cape Gemini, in addition to Microsoft and Adobe. He said that new permanent labor certification applications related to these companies will not be accepted and pending applications will not be processed.
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US Vice President JD Vance said that nine universities, including Harvard, Yale and Stanford, will be investigated. The administration alleges that these universities abused exchange visitor visa programs to affect the wages of American workers. The US Department of Labor’s Permanent Labor Certification Program, called PERM, is required to obtain a green card based mostly on employment. Under this process, companies must prove that hiring a foreign worker will not affect the wages, working conditions or job opportunities of American workers. After the application is approved, the case is sent to US Citizenship and Immigration Services.
