Washington, Oct 8: The Trump administration has suspended a key employment-based green card process for eight major technology and outsourcing companies, including Indian firms Infosys, Tata, Wipro and HCL, barring them from filing new permanent labour certification applications and halting the processing of pending cases amid a wider crackdown on alleged visa fraud.
The action, announced on Thursday by US Labour Secretary Keith Sonderling at a press conference led by Vice President JD Vance, also covers Cognizant, Capgemini, Microsoft and Adobe. Sonderling cited ongoing criminal and federal investigations as the basis for the move, but the administration did not disclose company-specific findings or details of the alleged violations.
Sonderling said the investigations included work by the Department of Labour’s Inspector General Anthony DiEsposito. He added that Microsoft and Adobe were included because they faced multiple active federal investigations.
According to figures presented by Sonderling, the eight companies had collectively sought nearly three million foreign workers since 2009. They had received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.
Vance accused employers of using the H-1B visa programme to replace American workers with lower-paid foreign employees. He said the programme should bring highly skilled overseas professionals into roles that American workers could not fill.
He specifically accused Microsoft of laying off 6,000 American workers while benefiting from 6,300 H-1B visas and nearly 3,000 green cards. The administration said it wanted companies to change their hiring practices rather than withdraw from the US market.
Asked how long the suspension would remain in force, Vance said it would continue for as long as necessary. He said the administration had options to extend the measure indefinitely but wanted the companies to change their conduct.
The Justice Department also said it was actively investigating companies suspected of favouring foreign workers over American employees. Attorney General Todd Blanche said enforcement could include criminal prosecutions and civil lawsuits.
The suspension has direct implications for Indian technology companies and professionals seeking permanent residence through employer sponsorship in the United States. The Permanent Labour Certification programme, known as PERM, is an important step in the employment-based green card process.
The H-1B programme, by contrast, permits temporary employment in qualifying specialised occupations. Thursday’s action targets PERM applications involving the eight named companies; it does not, by itself, cancel existing H-1B visas or green cards.
