Archive · 11 Oct 2026
Trump Administration Suspends Eight Firms From PERM Program
The US government has stopped eight technology and IT services companies from filing new PERM applications for now.
PERM is a step employers often use when helping workers seek a green card.
The companies include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
The administration says it is investigating whether companies used the system to replace American workers with foreign employees.
Vice President JD Vance cited Microsoft layoffs and visa filings in criticizing the company.
Microsoft said most of its H-1B applications in the last fiscal year were for workers already employed there.
H-1B visas allow temporary work, while PERM can be part of a route to permanent residency.
The suspension does not automatically cancel existing H-1B visas.
India's Ministry of External Affairs said the move could affect eligible employees' green-card processes and said worker mobility benefits both countries.
The Trump administration suspended Microsoft, Adobe and six other technology and IT services firms from the PERM programme.
The suspension bars new PERM filings by the companies and pauses processing of their pending applications.
Officials cited ongoing investigations and accused the companies of using the process to replace American workers with lower-paid foreign employees.
PERM is commonly used in employer-sponsored EB-2 and EB-3 green-card cases; some routes, including certain National Interest Waiver and extraordinary-ability cases, may not require it.
The action does not itself cancel existing H-1B visas; Microsoft said about 80% of its H-1B applications in the last fiscal year concerned current employees extending or changing status.
- Who
- The Trump administration suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini from the PERM programme.
- What
- The companies cannot submit new PERM applications, and processing of their pending applications is paused.
- When
- The suspension was announced on Thursday, October 8; the article does not specify the year.
- Where
- The United States.
- Why
- The Department of Labor cited ongoing federal investigations; the administration alleges the companies used the system to replace American workers with foreign employees.
Administration's allegations
Company and Indian government responses
Use of visa and labor-certification programs
Administration's allegations
Vice President JD Vance and Labor Department Inspector General Anthony D’Esposito accused companies of using H-1B and green-card processes to replace American workers. D’Esposito called H-1B use as a business model wrong.
Company and Indian government responses
Microsoft said about 80% of its H-1B applications in the last fiscal year were for existing employees extending or changing status, rather than new hires.
Microsoft layoffs and visa filings
Administration's allegations
Vance cited layoffs and immigration filings, and D’Esposito claimed Microsoft laid off 6,000 workers in 2025 and replaced them with foreign H-1B workers.
Company and Indian government responses
Microsoft disputed the implication that its H-1B filings primarily represented new foreign hires. The articles do not include a direct company response to the specific claim about replacing laid-off workers.
Effects of the crackdown
Administration's allegations
The administration says the action is part of efforts to address alleged visa abuse and protect American workers.
Company and Indian government responses
India's Ministry of External Affairs said the steps do not advance shared ambitions and argued that mobility between the countries supports innovation, productivity, competitiveness and job creation.
- Affected companies
- Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini
- Suspension effect
- No new PERM applications from the companies; pending applications are not being processed
- PERM
- A Department of Labor certification employers generally need for certain employment-based green-card applications
- Common green-card categories
- PERM is commonly used for employment-based EB-2 and EB-3 applications
- Possible PERM exemptions
- Some extraordinary-ability applicants and some EB-2 National Interest Waiver applicants may qualify for routes not requiring PERM
- H-1B distinction
- H-1B is a temporary, employer-sponsored work visa; the PERM suspension does not itself cancel existing H-1B visas
- Microsoft's response
- Microsoft said about 80% of its H-1B applications in the last fiscal year were for existing employees extending or changing status
- India's response
- India's Ministry of External Affairs said PERM is distinct from H-1B and that talent mobility benefits both countries
