US Blocks Major Tech and Outsourcing Firms from Green Card Process

UPDATE - follow-up to U.S. suspends Microsoft, Adobe and other major IT firms from PERM green card programme: The United States government has halted several leading technology and outsourcing providers from using the Permanent Labour Certification Programme, a vital step for moving H-1B visa holders toward green cards.

The Announcement

Labour Secretary Keith Sonderling revealed the measure alongside Vice-President and Anti-Fraud Task Force head J.D. Vance in Washington. The blocked companies include Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft, and Adobe. Authorities stated they will reject any new filings and halt all pending applications tied to these organisations. Sonderling pointed out that since 2009, these corporations alone requested nearly three million foreign personnel, securing over 230,000 H-1B approvals and upwards of 100,000 permanent certifications.

Official Reasons

Vance accused Microsoft of laying off local staff and substituting them with foreign personnel at a rate of one and a half foreign workers for every local employee let go. According to Reuters and the Associated Press, the administration tied the freeze to an ongoing investigation and alleged fraud, framing it as part of a wider effort to pressure corporations into hiring domestic employees.

Context

The PERM system acts as a key gateway for employers wanting to sponsor temporary skilled workers for permanent residency. Restricting access to this system significantly impacts how global technology firms manage their cross-border talent pipelines.