Washington announced this month that it will freeze new and pending applications under the Permanent Labor Certification (PERM) program for eight large technology firms. The decision bars the companies from hiring skilled foreign workers on a permanent basis through the widely used PERM pathway, a step that directly affects Indian professionals who dominate the H‑1B visa pool.
Policy shift and immediate impact
The eight firms named in the announcement include Microsoft, Infosys, Tata Consultancy Services (TCS), Wipro and HCL Technologies, among others. PERM applications for these companies are now on hold, meaning that workers who have been on H‑1B visas and were counting on the labor‑certification process to secure green cards face an abrupt stall.
Indian nationals hold a majority of H‑1B visas, using the temporary status to work in the United States while pursuing permanent residency through PERM. The suspension arrives amid a broader push by the Trump administration for stricter skilled‑worker immigration rules.
Industry experts say the impact on the firms’ bottom lines may be limited because PERM‑linked positions represent a small share of overall revenue. HDFC Securities, a brokerage firm, echoed this view, noting that even if higher‑paid American workers replace the roles, the financial hit would be modest.
Nevertheless, the human cost is described as “intense” by a senior executive at one of the affected companies, who asked to remain anonymous. He explained that many employees have spent years in the United States, only to see their green‑card applications stall. Some are prepared to return to India, but their children, raised in the U.S., are reluctant to move.
Data from the National Foundation for American Policy (NFAP) underscores the scale of the backlog: as of December 2025, nearly one million Indian nationals were waiting for employment‑based green cards, accounting for 79 % of all pending applications. Projected wait times for highly skilled Indians filing labor‑certification petitions range from five to 179 years, depending on the visa category.
Industry response and alternative pathways
India’s technology trade body Nasscom, representing an industry worth roughly $300 billion, says its members have already reduced reliance on H‑1B visas and are hiring more locally. Wipro reported that over 80 % of its U.S. workforce is locally sourced. TCS disclosed that its PERM filings were in single digits over the past two years, while Microsoft said most of its H‑1B petitions aim to retain existing staff rather than bring in new hires.
Business Standard, citing PERM Tracker, noted a steep decline in TCS’s PERM filings—from 1,804 in the year before last, to 513 the previous year, and just two in the 2025‑26 fiscal year. No PERM records were found for Infosys or Wipro for the same period.
Legal experts point to other immigration routes that bypass PERM. Individuals with extraordinary ability or work that advances U.S. national interests may qualify for special categories. The EB‑5 investor program also offers permanent residency to those who invest at least $800,000 in eligible U.S. enterprises, though Poorvi Chothani of LawQuest warned that many Indian professionals lack the capital to pursue that option.
Ahmet Gulek, a postdoctoral fellow at Stanford’s Immigration Policy Lab, cautioned that while alternative pathways exist, they are limited and may become targets of future restrictions. He added that moving to a firm not subject to the PERM freeze is uncertain because companies may fear retaliation for hiring foreign talent.
Earlier immigration measures provide context. The Trump administration once imposed a $100,000 fee on certain new H‑1B petitions, a rule later struck down by federal courts. More recently, a $70,000 fee was proposed for universities recommending international students for a post‑study work programme.
Broader political and social backdrop
The suspension occurs amid heightened anti‑Asian sentiment. Researchers at Stop AAPI Hate reported a sharp rise in online hostility toward South Asian immigrants and H‑1B holders following the 2024 U.S. election. Vice President JD Vance referred to foreign professionals on H‑1B visas as “foreign indentured servants,” a phrase that India’s foreign ministry condemned as “unwarranted” and “deeply offensive.”
Despite the rhetoric, industry leaders argue that America’s demand for Indian tech talent remains strong. Some executives suggest that, rather than losing jobs to U.S. workers, companies may shift work offshore to India, leveraging cost arbitrage and the post‑COVID acceptance of remote work.
Immigration scholars anticipate that the PERM freeze could face legal challenges in federal court, as previous restrictions have. Even if the suspension endures, the broader trend points to a more restrictive climate for those seeking to study, work, or settle in the United States.
One Indian professional, who asked to remain anonymous, described the situation as a “long‑standing” obstacle, noting that both major U.S. parties agree immigration law needs reform, though they differ on the approach. He warned that the combined effect of policy changes, visa backlogs and rising anti‑immigrant sentiment may prompt some skilled workers to reconsider long‑term plans in the United States.
Be First to Comment