US suspends green card filings for Microsoft, Indian IT firms

Reports indicate the US government may have suspended new green card applications under the PERM program for companies including Microsoft, Cognizant, Infosys, TCS, and HCLTech. Sources suggest the move stems from allegations of improper use of the visa process, though details remain unconfirmed.

Nasscom, representing India’s IT services industry, stated that its members comply with local regulations in more than 80 countries where they operate.

The development follows a broader decline in H-1B visa approvals, which Union Commerce Minister Piyush Goyal recently described as beneficial for India’s startup talent. At The Economic Times Startup Awards 2026, he suggested the drop could help retain skilled workers for domestic ventures. Earlier this month, the White House had also reportedly barred Microsoft from filing new green-card sponsorships, citing concerns over labor certification practices.

The potential suspensions highlight growing scrutiny of employer-sponsored immigration, particularly for Indian IT firms that use PERM as a pathway for H-1B workers seeking permanent residency. While Nasscom emphasized compliance, the crackdown—if confirmed—could signal a shift toward stricter enforcement of labor certification rules. For India’s tech sector, this may accelerate efforts to retain talent locally, though it remains uncertain how quickly domestic startups can absorb the redirected workforce.

The situation reflects broader tensions between global talent mobility and protectionist labor policies, affecting both US employers and India’s export-driven IT industry. Observers will monitor whether legal challenges or negotiations emerge between the affected companies and US authorities.

Sources: yourstory.com