US Green Card Restrictions 2026: What the PERM Freeze on TCS, Infosys and Microsoft Means

Updated: October 9, 2026

Last verified: October 9, 2026

The new US green card restrictions announced on October 8, 2026, bar eight employers from the Department of Labor's PERM program, the first step in most employer-sponsored green cards. The companies are Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe. The Labor Department will not accept new PERM applications from them or process pending ones, and no end date has been set (CNBC).

This PERM suspension does not cancel existing H-1B visas. The real pressure falls on green card timelines, and on H-1B workers close to the six-year limit who need a PERM case on file to extend their stay.

US Green Card Restrictions 2026: Key Facts

• Announced: October 8, 2026, at a press conference in the Eisenhower Executive Office Building on the White House campus.

• Who announced it: Vice President JD Vance announced the Microsoft suspension. Labor Secretary Keith Sonderling named the other seven companies. Attorney General Todd Blanche also spoke (Ellis Immigration).

• Program: Permanent Labor Certification (PERM), run by the US Department of Labor (DOL).

• Scope: "We will not accept any new or process any pending permanent labor certification applications involving these companies," Sonderling said (i9 Intelligence).

• Reason given: Officials alleged that the companies used foreign-worker programs to replace and underpay American workers. Sonderling said Microsoft and Adobe were suspended "due to multiple active federal investigations."

• Charges: None announced.

• Duration: No end date. Vance said the suspension will "last as long as it needs to" (ABC News).

• H-1B: Existing visas and status are not cancelled by this action.

Which Companies Are Suspended From the PERM Green Card Program?

The action covers PERM filings involving these employers. It is not a ban on their US operations or on hiring. Other large H-1B sponsors, such as Amazon, Google and Meta, were not named and can still use PERM (The Economic Times).

For Cognizant, this is the second PERM action in about a month. On September 8, 2026, the Labor Department's Inspector General announced that new PERM filings from Cognizant and Cloudera were suspended (i9 Intelligence).

Why Did the US Suspend These Companies From PERM?

Sonderling backed the move with combined figures for the eight companies: "Since 2009, just these companies alone have requested almost 3 million foreign workers. They've received over 230,000 H-1B visas approvals and over 100,000 permanent labor certifications" (CNBC). The department has not published the data behind those numbers.

Vance focused on Microsoft. He said the company laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas and almost 3,000 green cards, and that it "replaced that worker with one and a half foreign indentured servants." He also said Microsoft would be denied PERM "until they show that they are going to get serious about putting American workers first" (ABC News). Blanche said the Justice Department is "actively investigating companies" that favor foreign workers over Americans.

These are allegations. No charges have been announced against any of the eight companies, and the announcement did not set out the evidence behind the investigations. As of October 8, the Labor Department had not posted a written notice or named the rule it relied on. Immigration lawyers point to 20 CFR 656.31, which lets DOL pause PERM cases for an employer under investigation for possible fraud. Under that rule, a first suspension can last up to 180 days and can be extended until an investigation or court case ends (WR Immigration).

What Is the PERM Green Card Process?

PERM is the Department of Labor's permanent labor certification. For most EB-2 and EB-3 green cards, an employer must get a certified PERM application before it can file an immigrant petition with US Citizenship and Immigration Services (USCIS). DOL has to certify two things (DOL):

1. There are not enough US workers who are able, willing, qualified and available for the job.

2. Hiring the foreign worker will not hurt the wages and working conditions of similarly employed US workers.

The employer files the application, not the employee.

How the PERM Process Works, Step by Step

1. Prevailing wage determination. DOL sets the minimum wage the employer must offer for the role.

2. Recruitment. The employer advertises the job and tests whether qualified US workers are available.

3. PERM filing. The employer files Form ETA-9089 through DOL's FLAG system. The filing date becomes the worker's priority date, their place in the green card line.

4. Form I-140. Once DOL certifies the application, the employer files an I-140 petition with USCIS. A certification expires if it is not submitted within 180 days.

5. Green card. When a visa number is available for the worker's priority date, they apply through adjustment of status in the US or consular processing abroad.

Not every employment-based green card needs PERM. The EB-2 National Interest Waiver lets eligible workers petition for themselves without a labor certification (USCIS), and EB-1 categories also skip PERM. These routes have strict evidence standards and will not fit everyone.

How the PERM Suspension Affects Indian IT Workers in the US

The impact depends on where each worker's case stands.

PERM not yet filed

Employees waiting for their employer to start green card sponsorship cannot begin the process while the suspension lasts. That matters most for workers with limited time left on their H-1B.

PERM pending with DOL

Pending cases are paused, not denied. Timing can still hurt: employers generally must file within 180 days of their US recruitment, so a long pause may force them to repeat recruitment before filing (Ellis Immigration).

PERM certified or I-140 approved

The announcement did not say what happens to PERM cases DOL has already certified. Workers with an approved I-140 are further along, because USCIS handles that step, not DOL. An I-140 approved for at least 180 days generally keeps its priority date even if the employer later withdraws it.

Green card holders

A green card is an individual status. Suspending an employer from PERM does not revoke permanent residence that has already been granted.

Do the US Green Card Restrictions Affect H-1B Visas?

No, not directly. India's Ministry of External Affairs said the suspension "does not, by itself, affect the validity of existing H-1B visas or the status of H-1B visa holders and their dependents" (Business Standard).

The link between the two is the six-year H-1B limit. Under 8 CFR 214.2(h)(13)(iii)(D), a worker can extend H-1B status beyond six years in one-year steps if a PERM or I-140 was filed for them at least 365 days earlier. A worker at an affected company whose PERM was never filed cannot start that clock during the suspension. Workers with an approved I-140 stuck in the per-country backlog have a separate three-year extension path that does not need a new PERM (i9 Intelligence).

Spouses can be affected too. H-4 spouses qualify for work permits only if the H-1B worker has an approved I-140 or a beyond-six-year extension, so a frozen PERM can push that eligibility back.

How Have TCS and Microsoft Responded?

TCS said in a stock exchange filing on October 9: "Our PERM applications were in single digits in the last two years and hence we do not expect the suspension of the programme to impact our workforce strategy and customer engagements." It said it will comply with any directive from the Department of Labor, has a local workforce across 31 US offices and delivery centres, and repeated an earlier plan to "hire an additional 15,000 people in the US over the next five years" (Business Standard, The Hindu BusinessLine).

Microsoft said on October 8 that "the vast majority of Microsoft employees in the United States are Americans." It said that of the roughly 6,000 H-1B applications it filed in the last fiscal year, 80% were to extend or change the status of existing Microsoft employees (CNBC). The company also said it pays H-1B employees the same as other employees doing comparable work.

Adobe, Cognizant, Infosys, HCLTech, Wipro and Capgemini had not responded publicly when reports were published on October 9 (CNBC-TV18). Industry body Nasscom said Indian IT firms have cut their reliance on H-1B visas and expanded local hiring, so relatively few employees move to permanent residency through PERM.

Company statements are their own positions. They do not settle the government's allegations.

How Has India Reacted to the US Green Card Restrictions?

India's Ministry of External Affairs (MEA) responded on October 9. It said PERM is distinct from the H-1B program, that "talent mobility adds value to both economies," and that "the steps announced by the US do not advance the shared ambitions of both countries" (The Times of India).

The MEA also objected to Vance's description of H-1B workers as "foreign indentured servants." It called such descriptions "unwarranted" and said: "Resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive" (Business Standard). The ministry said it will continue to follow developments.

What Could the Suspension Mean for India's IT Industry?

The direct effect is limited to PERM filings by the named employers, and TCS says its own exposure is small. The wider effects are less certain. Firms may lean further on local US hiring, which several already say they are doing. Green card sponsorship is also a retention tool, so long delays could push some employees to look at employers outside the list. Client delivery should not change in the short term, since H-1B status and offshore teams are untouched by this action.

What Should H-1B Workers at Affected Companies Do Now?

1. Confirm your case stage. Find out whether your PERM is not filed, pending, certified, or past the I-140 stage.

2. Check your dates. Note your H-1B expiry, your six-year limit, and whether you already qualify for an extension.

3. Talk to your employer's immigration team. Ask how the suspension affects your specific case and timeline.

4. Keep your records. Save receipt notices, approvals and correspondence.

5. Follow official updates. Watch for written guidance from the Department of Labor and USCIS rather than relying on social media.

6. Get advice before switching jobs. A new employer not on the list can file its own PERM, but changing jobs can affect an existing case.

Frequently Asked Questions

What Happens Next?

The main open questions are how long the suspension will last, what happens to PERM cases already certified, and whether more employers will be added. Written notices from the Department of Labor should answer some of these.

For now, the US green card restrictions announced in 2026 slow employer-sponsored permanent residency at eight companies. They are not a ban on Indian workers, and they do not cancel existing H-1B visas or green cards.

Sources

• CNBC: U.S. suspends Microsoft, Adobe from green card labor program, October 8, 2026

• ABC News: Vance suspends Microsoft from a green card program, October 8, 2026

• Vice President JD Vance (@VP) on X, October 8, 2026

• U.S. Senate roll call vote confirming Keith Sonderling as Secretary of Labor, September 30, 2026

• US Department of Labor: Permanent Labor Certification

• USCIS: Employment-Based Second Preference (EB-2)

• USCIS: Employment-Based Third Preference (EB-3)

• eCFR: 20 CFR 656.31

• Ellis Immigration: Labor Department suspends Microsoft, Adobe and 6 IT firms from PERM, October 8, 2026

• i9 Intelligence: DOL suspends Microsoft, Adobe and six IT firms from PERM, October 8, 2026

• WR Immigration: DOL announces PERM suspensions, October 8, 2026

• Business Standard: TCS says PERM suspension will not impact workforce strategy, October 9, 2026

• The Hindu BusinessLine: No impact on workforce strategy due to US ban, says TCS, October 9, 2026

• Business Standard: MEA says PERM suspension won't affect existing H-1B visas, October 9, 2026

• The Times of India: MEA on US move to suspend firms from green card programme, October 9, 2026

• CNBC-TV18: What TCS, Nasscom and IIT alumni body said, October 9, 2026

• The Economic Times: TCS, Infosys, Wipro and others suspended from PERM green card program, October 9, 2026

This article provides general news and immigration information as of October 9, 2026. It is not legal advice. Speak to a qualified immigration lawyer about your own case.