US restricts major tech and IT outsourcing firms from green-card programme

The Crackdown

US authorities have blocked several major technology and IT outsourcing companies from using the Permanent Labour Certification Programme, also known as PERM. Labour Secretary Keith Sonderling announced the restrictions alongside Vice President JD Vance and the head of the US Anti-Fraud Task Force. The suspended firms include Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. Officials will not accept new applications or process pending ones for these firms. US leaders blamed the companies for misusing visa programmes and replacing local staff with foreign workers.

Official Claims

Vice President JD Vance singled out Microsoft during the announcement, stating that the company laid off American workers and brought in foreign staff instead. Vance claimed that for every person Microsoft laid off, the firm brought in one and a half foreign workers. Sonderling provided figures showing that since 2009, the named companies asked for nearly three million foreign workers, leading to over 230,000 H-1B visa approvals and more than 100,000 permanent labour certifications. These administration claims remain unproven allegations at this stage. The companies have not yet responded to requests for comment.

Impact on Workers

The PERM system is a vital step for employers who want to sponsor foreign workers for permanent residency and green cards. The suspension blocks the green-card pathway for these companies rather than immediately cancelling existing H-1B visas. The restriction carries major implications for Indian technology professionals, given that major Indian firms hold a strong presence in the US market and technology companies source nearly three-quarters of all H-1B approvals from India.

Context

The PERM process requires employers to prove that no qualified local workers are available before they can sponsor a foreign employee for permanent residency. H-1B visas are temporary work permits for specialised jobs, separate from the permanent green-card track. Immigration policy debates in the US often focus on balancing skilled foreign labour needs with domestic employment protection.