US Green Card Program Suspension Opens Talent Retention Doors for Karnataka

US PERM Suspension

The United States Department of Labor has suspended eight major technology companies and firms, including Infosys, TCS, Wipro, HCLTech, Microsoft, Adobe, Cognizant, and Capgemini, from the Permanent Labour Certification program. Labor Secretary Keith Sonderling stated that the agency will not accept or process any new applications for these companies under the green card pathway. Sonderling pointed out that since 2009, these firms have requested nearly three million foreign workers and received over 100,000 permanent labor certifications alongside more than 230,000 H-1B visa approvals. Vice President JD Vance specifically criticized Microsoft over domestic layoffs and foreign hiring practices, while Microsoft defended its record by stating that the vast majority of its U.S. workers are American citizens and most visa applications were renewals or status changes. President Donald Trump also announced plans to award the National Medal of Science to several tech leaders, including Microsoft CEO Satya Nadella.

Karnataka's Response

Karnataka IT-BT Minister Priyank Kharge views the U.S. green card suspension as a potential opportunity to draw global investments directly to the local talent pool rather than forcing workers to migrate abroad. Kharge noted that Bengaluru ranks fifth globally in artificial intelligence skillsets and accounts for roughly 40% of India's engineering research and development workforce. To support this growth, the state government is engaging with firms like Anthropic, OpenAI, Google, and Sarvam while funding 40% of skill-gap training costs to align higher education standards with industry needs. Karnataka has also overhauled its IT and data center policies to encourage sustainable infrastructure through rewards for green electricity and treated water usage.

Context

The Permanent Labour Certification program allows U.S. employers to sponsor foreign nationals for permanent residency, making it a critical channel for international tech professionals seeking long-term employment. Local governments in tech hubs often leverage shifts in global immigration policies to position their regions as attractive alternatives for foreign direct investment and skilled labor retention.