The Trump administration’s decision to suspend eight major technology companies, including four Indian IT giants, from a key employment-based green card programme has triggered a political confrontation in the United States, with Republican leaders backing the move to protect American workers and Democrats warning that it could undermine the country’s ability to attract global talent.
The suspension prevents the affected companies from submitting new applications or getting pending applications processed under the Permanent Labour Certification programme, commonly known as PERM.
The programme is an important step for employers seeking to sponsor eligible foreign employees for employment-based permanent residency in the US. The companies facing the restrictions include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini.
The US Department of Labour announced the action on October 8, citing allegations of misuse of employment-based immigration programmes and concerns that foreign workers were being hired at the expense of American employees.
President Donald Trump’s allies welcomed the decision, arguing that companies should prioritise domestic workers and be held accountable for alleged irregularities in the visa system. Republican Senator Eric Schmitt supported the administration’s move, saying the American economy should benefit American workers.
He accused major technology companies of exploiting the green card system to gain an advantage by hiring foreign professionals. Republican Congresswoman Beth Van Duyne also welcomed the restrictions, having previously raised concerns about alleged misuse of the H-1B visa programme and its potential impact on employment opportunities for American workers.
The administration has particularly focused on Microsoft, with Vice-President JD Vance accusing the technology giant of misusing immigration provisions. Vance pointed to the company’s workforce reductions and its use of foreign-worker visas, alleging that American employees were being laid off while the company continued to employ foreign professionals.
However, the move has drawn sharp criticism from Democratic leaders, who argue that restricting access to legal immigration pathways could damage the US economy and its technology sector. California Governor Gavin Newsom accused Trump of undermining the country’s legal immigration system for political reasons.
He argued that the US could strengthen its workforce by investing in American employees while continuing to attract highly skilled professionals from around the world. Newsom said the restrictions risk weakening the country’s ability to compete globally and could have consequences for its economic growth and technological development.
Indian-American Congresswoman Pramila Jayapal also criticised the administration’s approach, arguing that immigrants contribute significantly to the American economy, communities and families. She said policies targeting foreign professionals could weaken efforts to maintain a stable and diverse workforce while protecting American employees from unscrupulous employers.
Jayapal also defended Microsoft against allegations of visa fraud and abuse levelled by Vance and other senior administration officials. Congressman Ami Bera expressed concern that the decision could jeopardise future green card applications of thousands of skilled foreign workers, many of them Indian nationals.
He acknowledged the importance of protecting American workers and investigating credible allegations of visa fraud but argued that professionals who have followed the rules should not be unfairly penalised. Bera also emphasised that the US should continue to attract highly skilled workers from across the world to sustain its leadership in technology and innovation.
Meanwhile, India’s technology industry body, the National Association of Software and Service Companies (NASSCOM), said Indian technology firms had significantly reduced their dependence on the H-1B visa programme as they increasingly relied on local hiring in the US. The industry body also indicated that only a relatively limited number of employees had moved from H-1B status to permanent residency through the PERM process following these changes in hiring practices.
Microsoft, meanwhile, has disputed the administration’s allegations, maintaining that around 80 per cent of its H-1B applications filed during the previous fiscal year were intended to extend or change the status of existing employees rather than recruit new workers.
The suspension has raised concerns among Indian technology professionals seeking permanent residency through employer sponsorship. While the action does not automatically cancel existing H-1B visas, it restricts an important route towards obtaining a green card for eligible employees of the affected companies.
The contrasting responses from Republican and Democratic leaders highlight the broader debate over immigration, employment protection and the role of foreign talent in the US economy, with the impact of the restrictions likely to remain a key concern for technology companies and skilled professionals.
