US suspends PERM green-card sponsorship for major tech firms over alleged fraud

On Thursday, U.S. officials said the Department of Labor is suspending the Permanent Labor Certification (PERM) process for a group of leading technology and outsourcing firms, including Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The agency will reject new PERM applications and halt pending ones for these companies, alleging they exploit the program to replace U.S. workers with lower-cost foreign employees.

This action widens the Trump administration’s immigration crackdown, which earlier attempted to impose a $100,000 fee on new H-1B petitions—a measure that courts have blocked. Firms such as Meta, Amazon and Google were not targeted and can continue sponsoring green cards. PERM, introduced in 2005, is a crucial pathway for H-1B holders to obtain permanent residency, and its suspension could force foreign talent to remain on temporary visas longer, making U.S. hiring less attractive.

Critics like Chad Sparber of Colgate University and Ahmet Gulek of Stanford’s Immigration Policy Lab argue the policy may undermine U.S. global competitiveness by discouraging skilled immigrants. Vice President JD Vance warned that companies must hire American workers, reinforcing the administration’s narrative that foreign labor displaces domestic jobs.