US Suspends Green Card Sponsorship for Microsoft and IT Firms

The Trump administration indefinitely suspended eight major technology and outsourcing firms from the Permanent Labour Certification (PERM) program on October 8. U.S. Labor Secretary Keith Sonderling announced that the Department of Labour will no longer accept new or process pending green-card sponsorship applications for Microsoft, Adobe, Cognizant, Capgemini, Infosys, Tata Consultancy Services, Wipro, and HCL Technologies. Sonderling alleged these companies took "hundreds of thousands of jobs" from American workers.

Vice President JD Vance intensified the crackdown, singling out Microsoft as the biggest abuser of the system and describing H-1B visa holders as "foreign indentured servants." The Ministry of External Affairs of India condemned Vance's terminology as "deeply offensive" and "unwarranted," arguing it ignores the contributions of skilled Indian professionals to the U.S. economy. While the ministry noted that existing H-1B visas remain valid, it acknowledged the suspension hinders the permanent residency process for eligible employees.

The Foundation for India and Indian Diaspora Studies (FIIDS) urged the administration to implement safeguards for foreign professionals. FIIDS chief of policy and strategy Khanderao Kand argued that claims of H-1B workers replacing Americans should be validated through job-level evidence rather than aggregate layoff figures. The organization called on the Department of Labour and U.S. Citizenship and Immigration Services to provide transparent, time-bound review processes to restore employer eligibility.