US Bars Infosys, Wipro, Microsoft and Other Tech Majors From Green Card Sponsorship Route Over Fraud Claims

The Trump administration on Thursday suspended Microsoft from the programme that lets American employers sponsor foreign workers for permanent residency, and said several of the world's largest IT services companies would be shut out of it as well. For India's technology workforce in the US, which accounts for the bulk of H-1B approvals, this is the most direct hit yet in Washington's widening campaign against skilled-worker visas.

Vice President JD Vance announced the move at a White House news conference on the administration's Fraud Task Force, accusing Microsoft of replacing laid-off American staff with foreign hires. Labor Secretary Keith Sonderling then said the suspension would extend to Cognizant, Infosys, Wipro, Capgemini, Adobe and a Tata group company, among others. Microsoft did not immediately respond to requests for comment.

What exactly is being suspended

The programme in question is PERM, short for Permanent Labor Certification. It is the first formal step most US employers take when they want to sponsor an employee, typically someone already working on an H-1B visa, for a green card. The employer has to show the Labor Department that it tried and failed to find a qualified American for the role. Only after that certification is approved can the worker's immigrant petition move forward.

A company barred from filing PERM applications cannot start new green card cases for its staff through this route. That matters enormously for Indian engineers, many of whom spend years on H-1B visas waiting for a green card because of country-wise caps that create long queues for Indian applicants.

A pattern, not a one-off

Thursday's action expands a crackdown that began with a narrower target. In early September, the Labor Department's Inspector General suspended PERM filings by Cognizant and Cloudera after an investigation run with the White House Fraud Task Force. At the time, officials signalled that other companies could follow. Indian IT firms such as Infosys and Wipro, which sponsor large numbers of employment-based green cards, were widely seen as exposed. That risk has now materialised.

It also lands a day after the Department of Homeland Security proposed a $70,000 fee that colleges would have to pay for each international student taking part in Optional Practical Training, the programme that lets foreign graduates work in the US in their field of study. Vance separately named nine universities, including Harvard, Yale and Stanford, for investigation over their use of J-1 exchange visas. The Labor Department's inspector general said subpoenas had already been served.

What it means for Indian workers and companies

When Cognizant was suspended last month, the restriction applied to new PERM filings. It did not cancel labour certifications, green cards or H-1B approvals that had already been granted. If the same approach applies here, employees with approved certifications should be less affected than those whose employers had yet to file, who now face an open-ended wait.

For the companies, the immediate cost is less about revenue and more about talent. Green card sponsorship is one of the main tools IT services firms and Big Tech use to retain experienced engineers on US projects. Losing it could push some employees to look for jobs at employers that are not suspended, and could complicate long-term staffing on client sites. Shares of Indian IT companies have already been under pressure this year from AI-related demand worries, and investors are likely to watch Friday's trade closely for any reaction.

Key unanswered questions include how long the suspensions will last, what evidence of fraud the government holds against each company, and whether any of the firms will challenge the decision in court.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.