The Trump administration on Thursday suspended Microsoft, Adobe, and several large IT outsourcing firms from the Permanent Labor Certification Program, known as PERM. PERM is a key step toward employment-based green cards, and many H1B holders depend on it.
Labor Secretary Keith Sonderling named Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. He said the department will not accept new applications or process pending ones involving these companies.
Vice President JD Vance said Microsoft was suspended after an investigation. He accused it of replacing laid-off American workers with foreign staff. Microsoft has not commented.
The move does not cancel anyone's H1B visa. It affects the path to permanent residency. Nearly three-quarters of H1B approvals go to workers from India, so Indian professionals are especially exposed.
The fraud allegations remain unproven. Cognizant's PERM filings were suspended in September.
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