US suspends Microsoft, Infosys, TCS, Wipro, Cognizant and others from green card (PERM) programme over alleged H-1B abuse
The US Labor Department has suspended six IT outsourcing firms, along with Microsoft and Adobe, from the PERM process that leads to green cards. The H-1B visa programme itself has not been cancelled, and the companies have not been found guilty of any violation.
The Trump administration announced on Thursday, 8 October 2026 that it is suspending several large technology companies from the Permanent Labor Certification (PERM) programme, saying the H-1B visa system has been widely abused. Labor Secretary Keith Sonderling named six IT outsourcing firms, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, and the Labor Department also suspended Microsoft and Adobe, citing multiple active federal investigations. Reports read the name "Tata" in the announcement as Tata Consultancy Services (TCS).
What has been suspended
PERM is the Labor Department process that employers use to show that they tested the US job market and found no qualified, willing American worker. It is usually the first step in sponsoring a foreign worker, often one on an H-1B visa, for a green card. According to Newsweek, the suspended companies cannot file new PERM applications, and their pending applications will not be processed further. The suspension does not cancel existing H-1B visas, and reports do not say how long it will last.
What the administration said
Vice President JD Vance said big companies have used the H-1B system to bring in cheaper foreign workers in place of American employees, and he singled out Microsoft. He said that Microsoft laid off about 6,000 American workers in 2025 while it continued to file green card applications. These are the administration's claims, and the figures quoted in different reports vary slightly. Sonderling said the six outsourcing firms are among the largest in the world and that the department has found large-scale visa fraud.
What is not known yet
We could not find a response from any of the companies, and no final finding against them. The announcement refers to allegations and ongoing investigations. Details are still emerging.
Why it matters for markets
Indian IT companies such as TCS, Infosys, Wipro and HCL Tech depend heavily on US clients and on sending skilled staff to work there, so any curb on their visa and green card routes is closely watched. The Indian market was closed when the news came, so the first reaction in these stocks will be seen when trading opens on Friday, 9 October. Nifty IT was the only sector that held up on Thursday.
This story was compiled by CapitCue from the media reports listed below. It is not an official statement, and CapitCue provides information only; it is not investment advice.