• The US suspended eight major tech companies from the PERM program affecting Indian IT workers.
• Companies like Microsoft and Infosys are accused of abusing green card processes.
• The suspension does not affect existing H-1B visas but complicates pathways to permanent residency.
• Many Indian professionals could face prolonged immigration backlogs as a result.
• India's government criticized the move and statements by US officials regarding foreign workers.

The US government announced on October 8, 2026, the suspension of eight leading tech firms, including Microsoft and Cognizant, from the Permanent Labor Certification (PERM) program, a key component for skilled foreign workers seeking green cards. This action stems from allegations that these companies have been using the system to replace American workers with lower-paid foreign employees, particularly impacting thousands of Indian IT workers who rely on this path for permanent residency, according to India Times and Reuters.

The suspension includes major firms like Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, and Capgemini. Vice President JD Vance claimed that such measures are necessary to curb alleged fraud in the visa system, stating that companies have abused employment-based immigration programs to displace native workers, thus justifying the immediate cessation of new or pending PERM applications from these firms, according to Al Jazeera and India Times.

The Department of Labor cited the need to prevent foreign workers from adversely affecting US wages and working conditions as a significant reason for the suspension. The PERM process, which serves as a critical pathway for many skilled workers transitioning from temporary employment (like H-1B visas) to permanent residency, has now become disrupted, placing immense pressure on existing applications and future employment plans for many foreign professionals, especially those from India, according to India Times and India Times.

The rationale for these actions has sparked significant debate, with critics arguing that the measures risk making the US less competitive globally by deterring skilled foreign talent. Analysts caution that restricting paths to permanent residency could worsen the backlog for Indian H-1B visa holders, who currently represent a significant portion of the skilled immigrant workforce, thereby exacerbating the challenges faced by these individuals and their families, according to Reuters and Al Jazeera.

While the immediate impact of the suspension does not terminate existing H-1B visas or green cards for those already approved, it creates new hurdles for companies and their employees. Workers with pending PERM applications may face extended delays, while companies could potentially challenge the suspension in federal court, seeking to resume processes related to their applications, according to India Times and Al Jazeera.

The Indian government has responded critically to the US decision, emphasizing that talent mobility contributes significantly to both countries' economies and arguing that such actions undermine cooperation and mutual benefits between the US and India. Such remarks underscore ongoing tensions surrounding immigration policies that affect numerous highly skilled professionals attempting to navigate the complexities of US residency requirements, as reported by Al Jazeera.