US Suspends Green Card Pathway for Eight Tech Firms, Impacting Indian Workers

The United States has suspended eight technology firms, including major Indian IT companies Infosys, Tata Consultancy Services, Wipro, and HCL Technologies, from hiring skilled international workers on a permanent basis through the widely used Permanent Labor Certification Program (PERM).

This move freezes new and pending applications under PERM, a significant blow to Indian professionals who often rely on this pathway to obtain green cards and permanent residency after working in the U.S. on temporary H-1B visas. The decision aligns with a broader push for stricter skilled-worker immigration rules.

Experts suggest the impact on businesses may be limited, as these companies have been adapting to changing regulations. Nasscom, the trade association for India's technology industry, reported that Indian companies have increasingly reduced their dependence on H-1B visas and are prioritizing local hiring. Wipro stated that over 80% of its U.S. workforce is locally hired, and Tata Consultancy Services indicated that its PERM applications have been in the single digits in recent years. Microsoft also noted that its H-1B visa filings are primarily for retaining existing staff rather than importing new workers.

A report citing PERM Tracker data showed a significant drop in TCS's PERM application filings, from 1,804 two years prior to only two in the 2025-26 period. No records were found for Infosys and Wipro for the most recent year.

While business impacts may be minimal, the human cost is significant. A senior executive with one of the affected firms, speaking anonymously, described the restriction as more intense on a human level, noting that many individuals are in a state where they have lived in the U.S. for years but their green card applications are stalled. The emotional toll is compounded when their children, having grown up in the U.S., are reluctant to relocate to India.

The U.S. government's decision has deepened uncertainty and fueled online hostility towards Indian immigrants and H-1B visa holders. Researchers at Stop AAPI Hate have observed a rise in anti-South Asian online sentiment, with Indian immigrants and H-1B visa holders frequently targeted.

Vice President JD Vance's reference to H-1B visa holders as "foreign indentured servants" drew sharp criticism from India's foreign ministry, which deemed the remark "unwarranted" and "deeply offensive."

Immigration law experts note that tightening rules leave many Indian professionals with fewer options. Some may reconsider their U.S. career paths, while others might opt against moving to the U.S. at all. While changing to a different firm not subject to the suspension is an option, uncertainty exists regarding potential employers' willingness to hire immigrants amidst fears of retaliation. The current tech industry climate, marked by layoffs and AI adoption, also makes job changes more challenging.

Alternative routes to a U.S. green card exist, such as categories for individuals with exceptional accomplishments or those whose work advances national interests, bypassing the PERM process. Another option is the EB-5 investor visa, requiring a minimum investment of $800,000. However, immigration experts caution that these categories could also face future scrutiny.

As of December 2025, nearly one million Indian nationals were awaiting employment-based green cards, constituting 79% of all pending applications, according to the National Foundation for American Policy. Projections indicate that highly skilled Indians filing labor certification or employment-based petitions from January 2026 could face wait times ranging from five to 179 years.

Similar to other recent immigration measures, the PERM suspension may lead to federal court challenges. Collectively, these actions signal a more restrictive environment for those seeking to study, work, or settle in the U.S.

Previous actions by the Trump administration, such as imposing a fee on certain H-1B visa petitions (later struck down by courts) and proposing fees for universities recommending international students for post-graduation work programs, indicate a sustained trend toward stricter immigration policies. Both major U.S. political parties acknowledge the need for immigration reform, despite differing approaches.

Some research suggests that these restrictions could lead to job offshoring rather than increased employment for American workers, a notion supported by industry players who are already observing an increase in companies moving work overseas. Experts believe that while America's demand for Indian tech talent will likely persist, the methods of accessing this talent may evolve, potentially requiring Indian professionals to adapt their plans for building a future in the U.S.