The US government on Thursday suspended eight major technology and IT firms, including Microsoft, Adobe, Cognizant, and Capgemini, from a green card program that allows skilled foreign workers to gain permanent residency through employment. Senior US officials cited alleged fraud, stating that companies have been using the program to replace American workers with cheaper foreign labor.
US Vice President JD Vance and Secretary of Labor Keith Sonderling announced the suspension of these employers from the Permanent Labor Certification (PERM) program on Thursday, October 8, 2026. This action is the latest step in the Trump administration’s crackdown on skilled foreign labor.
Eight companies affected by PERM suspension
The suspension targets the PERM employer-sponsorship mechanism, which is widely used by major technology and outsourcing firms. The US government stated it would not accept any new PERM applications or process any pending ones for the suspended companies. The eight companies affected are:
- Microsoft
- Adobe
- Cognizant
- Infosys
- Tata Consultancy Services
- Wipro
- HCL Technologies
- Capgemini
Inspector General Anthony D’Esposito of the Department of Labor confirmed that subpoenas have been issued to the suspended companies. Other major tech companies like Meta, Amazon, and Alphabet’s Google remain free to participate in the program.
Vice President Vance accused companies on Thursday, October 8, 2026, of misusing the PERM program to replace American employees with foreign workers and undercut their wages. He stated, “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers.”
Impact on Nepali workers
More than 200,000 Nepalis are studying, working, and residing in the US, according to a December 2024 report by the Institute for Integrated Development Studies (IIDS). The PERM program serves as a critical bridge for many skilled foreign workers to transition from temporary work visas, such as the H-1B, to a green card.
Without the option of employer sponsorship under PERM, foreign workers could lose a key route to permanent residency and might have to remain on temporary visas for longer periods. Legal experts suggest that the tightening of US immigration and visa policies under the Trump administration could significantly affect Nepali applicants.
Risk of talent drain
Chad Sparber, Director of the Lampert Institute for Civic and Global Affairs at Colgate University, argued that it is a “fallacy to think that you can protect American workers by keeping skilled foreign workers out of the country.” Ahmet Gulek, a Postdoctoral Fellow at Stanford’s Immigration Policy Lab, emphasized that permanent residency is the primary way for talented foreign workers to stay in the country, and without it, some will leave or choose not to come at all, even temporarily.
What happens next
The PERM suspensions will remain in effect until investigations are completed. Officials have indicated that the administration possesses the tools to extend the suspensions indefinitely, aiming to bring about changes in recruitment practices. The Department of Labor’s Inspector General has announced a new visa fraud strike team and reported on several ongoing cases. It remains unclear when the suspended companies will be allowed to participate in the PERM program again.
