By The Chaiscoop Desk. Based on published reports from ABC News, TIME and Al Jazeera. Updated October 12, 2026.
On Thursday, October 8, 2026, the Trump administration announced at a Washington press conference that eight companies are suspended from the PERM program, the labor certification step employers generally must complete before sponsoring a worker for an employment-based green card. Vice President JD Vance, who leads the administration’s anti-fraud task force, and Labor Secretary Keith Sonderling made the announcement.
What was announced
- The companies. TIME and Al Jazeera list Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. Early coverage, including ABC News, focused on Microsoft and Adobe.
- The effect. Sonderling said the Labor Department will not accept new PERM applications involving these companies, and will not process pending ones.
- The duration. Vance said the suspensions will last “as long as it needs to.” No end date was given.
- The stated basis. Officials cited ongoing federal investigations. Sonderling said the companies received more than 230,000 H-1B approvals and more than 100,000 PERM certifications since 2009. These are the administration’s figures; none of the outlets independently verified them.
The Microsoft claims and the response
Vance said Microsoft laid off about 6,000 American workers last year while obtaining 6,300 H-1B visas and nearly 3,000 green cards, and said no U.S. company has abused the system more. ABC News reported that Vance himself hedged on the numbers at the event.
Microsoft disputes the framing. It said 80% of its H-1B applications last year were to extend or change the status of current employees, that new-hire filings equal about 1% of its U.S. workforce, and that it pays H-1B workers the same as others in comparable roles. Tata Consultancy Services told Reuters it does not expect an impact on its workforce strategy or client work, citing single-digit PERM applications over the past two years. Reports did not include responses from most of the other companies.
Reaction
Al Jazeera reports that India’s Ministry of External Affairs called Vance’s comparison of the workers to “foreign indentured servants” “unwarranted” and “deeply offensive.” TIME reports that Nasscom, India’s IT industry group, said the effect would be limited, that former USCIS adviser Doug Rand called the policy “incoherent,” and that Rep. Pramila Jayapal opposed it.
Why Indian workers are watching
Al Jazeera, citing earlier analysis, says nearly one million Indians on U.S. work visas are in the employment-based green card backlog, that Indians make up about 79% of a backlog of roughly 1.25 million people, and that Indian nationals hold about 70% of existing H-1B visas. Al Jazeera also says “tens of thousands” of mostly Indian workers could be affected. That is a concern raised by the move, not a verified count.
What is still unknown
- The legal authority and formal process for the suspension. ABC News reports no formal order or effective date was described.
- Whether workers with already-approved PERM certifications or later-stage petitions are affected. The reports do not say.
- Whether affected workers or employers can challenge the action.
- Whether any wrongdoing will be established. The investigations are ongoing; the reports describe allegations, not findings.
Related actions the same week
TIME reports that the Department of Homeland Security proposed a $70,000 fee for the Optional Practical Training program on October 8, that the administration announced a $103,265 fee for cap-subject H-1B petitions in August, and that a separate $100,000 H-1B fee from September 2025 was struck down in June 2026 with an appeal pending. Separately, the Labor Department’s inspector general announced an investigation of J-1 visa fraud at nine universities. That probe is not part of the PERM action.
What affected workers can do
This is general information, not legal advice. If you work at one of the named companies or have a pending PERM case, the sensible steps are to ask your employer’s immigration counsel, in writing, how your case is affected; keep copies of every filing, receipt and approval notice; consult an independent immigration attorney; and follow official Department of Labor and USCIS announcements. Avoid irreversible decisions, such as resigning or selling a home, based on rumor.
Sources
- ABC News: Vance suspends Microsoft from a green card program
- TIME: U.S. Expands Crackdown on Green Cards, Student Exchange Visas
- Al Jazeera: US green card move will hit thousands of IT workers
Image: Daniel Schwen / Wikimedia Commons, CC BY-SA 3.0. Source: Wikimedia Commons.
