US PERM Suspension Hits TCS, Infosys, Wipro, Microsoft & More

The US Department of Labor triggered a sweeping PERM suspension on 8 October 2026, cutting off eight major technology and IT outsourcing companies from the Permanent Labour Certification program and freezing new and pending green-card sponsorship for their US employees. Labor Secretary Keith Sonderling announced the move, and Vice President J.D. Vance confirmed it the same day at a press briefing covered by CNBC.

The Companies and the Immediate Effect

• Suspended directly by Sonderling: Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech and Capgemini
• Suspended separately: Microsoft and Adobe, over what Sonderling called “multiple active federal investigations”
• Effect: the Department of Labor will not accept new PERM applications or process pending ones from any of these eight companies, according to Business Standard’s reporting on Sonderling’s statement

PERM is the step an employer must clear: the company has to prove no qualified US worker is available for the role before a foreign employee can move toward an employment-based green card. This PERM suspension doesn’t touch anyone’s current H-1B status or job. It blocks the next step toward permanent residency, and it’s the broadest such action to date: a single-company PERM suspension hit Cognizant alone in September 2026, but this is the first time the freeze has extended to eight firms, including two American companies, in one announcement.

As of publication, none of the eight companies had issued a public statement responding to the suspension.

Get My university Shortlist in 60 Secs

0%

Choose your dream country

Please select a country

UK

USA

Germany

Australia

Ireland

New Zealand

Canada

UAE

France

Sweden

Italy

Other

When do you want to study abroad?

Please select an option

Recommended Jan 2027

Sep 2027

2028 or later

2028 or later

What's your highest level of education?

Please select an option

Bachelor's

Master's

MBBS / MD

Diploma

12th Grade

10th Grade

Have you completed Class 12th?

Please select an option

Yes

No

What was your Class 12 CGPA/percentage?

Please enter a valid CGPA/percentage (0-100)

Are you a student or a parent/guardian?

Please select an option

Student

Parent/Guardian

Other

What do you want to study?

Please select a course

Select your current city

Please select your city

 

Please Enter Your Name

 

IN +91 UAE +971 QA +974 SA +966 KW +965 OM +968 BH +973

Please Enter a Valid Number

 

Please Enter Your Email

How Leap will help you

Personalised University Shortlist

Express Applications with Quicker Admits

End-to-End Application Support

Continue

The scale, in the Government’s Own Numbers

The financial footprint behind this PERM suspension is large by Sonderling’s own account: he said that since 2009, the eight companies have collectively requested close to three million foreign workers, and received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications between them, figures reported by both Business Standard and CNBC, attributed directly to Sonderling rather than independently audited.

Vance singled out Microsoft by name, saying the company laid off 6,000 American workers last year while receiving 6,300 H-1B visas and close to 3,000 green cards over the same period, figures from Vance’s own briefing that Microsoft has not independently published. “You’re a great American company, but you have got to hire great American workers,” he said.

Where This PERM Suspension Fits in the Bigger Picture

This action lands on top of the Rs.95,98,000 ($100,000) one-time fee the Trump administration imposed on new H-1B petitions in September 2025.

Exchange rate used: Rs.95.98 per USD as of October 2026. Verify the current rate before finalizing your budget.

That fee is currently unenforceable. Bloomberg Law reported that a Massachusetts court struck it down in June, and a California federal judge issued a second injunction in September, with Fragomen’s immigration counsel noting the government’s appeal is still pending.

Why This PERM Suspension Matters for Indian Students

Indian nationals received 283,397 of the 399,395 H-1B visas approved in fiscal year 2024, 71% of the total, and the Indian immigrant population in the US stood at roughly 3.2 million in 2024, the second-largest of any country of origin, according to the Migration Policy Institute.

Six of the eight suspended companies, TCS, Infosys, Wipro, HCLTech, Capgemini and Cognizant, are among the largest employers of Indian graduates moving from a US master’s into an H-1B role and, eventually, a green card. If you’re already at one of these firms with a PERM filing in progress, that filing is frozen indefinitely. Your H-1B and your job are unaffected, but your green card timeline just got a lot less predictable. If this PERM suspension affects your employer directly, or you’re weighing a job offer from one of these six firms as a path to long-term US settlement, this is a good moment to ask the employer where their PERM and green card sponsorship plans stand.

What to Do Now

If you’re employed at or have an offer from one of the eight named companies and were counting on PERM sponsorship, talk to an immigration attorney or your employer’s immigration team about your specific case. This PERM suspension hits new and pending filings, not approvals finalized before 8 October. 

For broader planning: see our guide on job opportunities and pay for Indian professionals in the US, and our breakdown of fresher job options in the USA for Indians. If you’re still at the student-visa stage. 

Have questions about US work visas after your degree? Book a free session with a LeapScholar counselor.