The US government has suspended eight major technology companies from processing new and pending applications under the PERM programme, a key step in obtaining employment-based green cards. The decision was announced on October 8, 2026, by US Vice President JD Vance and Labor Secretary Keith Sonderling as the Trump administration steps up scrutiny of employer-sponsored immigration.

The companies include Microsoft and Adobe, along with six major IT services firms with substantial operations in India. For foreign professionals working in the US, the announcement raises questions about green card sponsorship, pending applications and how long they may have to wait for permanent residency.

Full List of the 8 Companies

The companies named in the suspension are:

1. Microsoft

2. Adobe

3. Cognizant

4. Infosys

5. Tata Consultancy Services (TCS)

6. Wipro

7. HCL Technologies

8. Capgemini

The US Department of Labor has said it will not accept new PERM applications involving these companies or process applications that are already pending. The administration has not announced a fixed end date for the suspension.

What Is the PERM Process?

PERM stands for Program Electronic Review Management. It is the US Department of Labor's permanent labor certification process, generally used by employers sponsoring foreign workers for employment-based green cards.

Before applying for labor certification, an employer must normally conduct recruitment and demonstrate that there are no able, willing, qualified and available US workers for the position, and that employing a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

Once the labor certification is approved, the employer can generally move on to filing an immigrant petition with US Citizenship and Immigration Services. The worker must then meet the applicable requirements for the remaining green card process, including visa availability.

PERM is therefore an important stage in the journey to permanent residency. A halt at this point can prevent an employer from moving forward with a new case, even when the employee is otherwise eligible for sponsorship.

Why Did the US Suspend These Companies?

The Trump administration says it is acting against what it describes as abuse of the foreign-worker system. Officials have accused certain companies of laying off American employees while continuing to rely on foreign workers and of using recruitment processes that fail to give qualified US applicants a fair opportunity.

Microsoft received particular attention from Vice President JD Vance. He pointed to company layoffs and its use of H-1B workers and green cards as evidence of what he described as misuse of the system.

Microsoft disputed the characterisation of its hiring practices. The company said around 80% of its H-1B applications in the previous fiscal year were for existing employees seeking extensions or changes of status, rather than for newly hired workers. It also said H-1B employees are paid comparably to other employees doing similar work.

The government has not publicly established that every company on the list committed the same violation. The suspension should be understood as an enforcement action amid allegations and investigations, rather than a final finding that all eight companies engaged in identical misconduct.

What Happens to H-1B Visa Holders?

The distinction between PERM and H-1B is important. The suspension does not automatically cancel existing H-1B visas or terminate the legal status of people already working in the US.

H-1B is a temporary work visa for eligible specialty-occupation workers. PERM is a labor certification process used in many employer-sponsored green card cases. They serve different purposes, even though an employee may rely on both at different points in their career.

The Indian Ministry of External Affairs said on October 9 that the measures would not affect the validity of existing H-1B visas or the status of their holders and dependents. The immediate concern for affected employees is the separate route to permanent residency.

Anyone whose immigration plans depend on an employer-sponsored green card should check their specific case with the company's immigration team or a qualified US immigration attorney. The consequences may differ depending on whether the employee is preparing a PERM filing, has a pending application or has already progressed to another stage.

Impact on Indian IT Professionals

The decision has particular relevance for Indian professionals because four of the named companies are major Indian IT services businesses: TCS, Infosys, Wipro and HCL Technologies. Cognizant and Capgemini also have significant operations serving US clients.

Employees whose companies were preparing to start PERM applications could face delays in beginning the process. Those with pending applications now face uncertainty over when their cases can move forward. Longer delays may also complicate decisions around career planning, family arrangements and long-term residence in the United States.

The immediate business impact may be more limited than the headline suggests. Reuters reported that Indian IT companies have reduced their reliance on the PERM route in recent years. TCS said it did not expect the suspension to affect its workforce strategy or client engagements, citing single-digit PERM applications over the preceding two years.

That does not remove the uncertainty for individual workers. A policy that affects relatively few applications across a large company can still have serious consequences for the people whose long-term plans depend on those cases.

Will Pending Green Card Applications Be Cancelled?

The announcement says that new and pending PERM applications involving the named companies will not be processed. It does not mean that every employee's existing immigration approval has automatically been revoked.

The position of someone who already has an approved labor certification or an approved I-140 immigrant petition may differ from that of a worker who has not yet started PERM. The precise effect depends on the stage of the case and how the authorities implement the suspension.

Employees should not assume that their applications will automatically continue, but they also should not assume that all previous approvals have become invalid. They should ask their employer's immigration counsel to review their documents and explain what options remain available.

How Long Will the Suspension Last?

As of October 10, 2026, the administration has not announced a specific date on which the restrictions will end. Vance said the suspensions would remain in place for as long as necessary, linking their duration to the administration's effort to change hiring practices.

The next important developments will be clarification from the Labor Department, any further information about the investigations and guidance on how affected applications will be handled. Until those details are available, the impact on individual green card cases remains uncertain.