The U.S. administration has suspended the Permanent Labor Certification (PERM) program—a critical step toward obtaining employment-based permanent residence—for Microsoft, Adobe, and six major Indian IT firms. The move directly impacts outsourcing giants including Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech, and Capgemini.

U.S. Deputy Secretary of Labor Keith Sonderling announced the suspension alongside Vice-President J.D. Vance, stating the Department of Labor will no longer accept new PERM applications or process pending ones for the affected companies. Administration officials claimed the widespread reliance on foreign labor by these tech companies has displaced job opportunities for American workers.

While the decision disrupts the permanent residency pipeline for thousands of foreign professionals—predominantly Indian nationals working on H-1B visas—officials clarified that existing temporary work visas remain valid, meaning affected employees are not required to leave the country immediately.