US Freezes Green Card Path for Tech Giants Over Alleged Fraud, Hits Indian IT Firms

The US government has dramatically escalated its crackdown on alleged immigration fraud, suspending eight major technology and IT outsourcing firms – including Infosys, Wipro, Microsoft, and Adobe – from a crucial green card program. The unprecedented move, announced Thursday by Vice President J.D. Vance and Labor Secretary Keith Sonderling, immediately halts new and pending Permanent Labor Certification (PERM) applications for these companies, citing widespread abuse and a push to prioritize American workers. The Trump administration's Anti-Fraud Task Force accused these firms of misusing employment-based immigration programs to replace US workers with lower-paid foreign employees, with Vice President Vance specifically highlighting Microsoft alleged practice of laying off thousands of American staff in 2025 while simultaneously seeking thousands of H-1B visa holders and green card. The Department of Labor's Inspector General also revealed ongoing investigations and the establishment of a new visa fraud strike team, indicating a broader, coordinated enforcement push. This suspension throws a wrench into the plans of thousands of foreign professionals, particularly Indian IT workers, who rely on employer sponsorship for permanent residency. While existing H-1B visa and approved green card are not immediately canceled, the indefinite halt on PERM applications means significant delays and uncertainty for those in the pipeline. Companies like Infosys and Wipro will now face intense pressure to re-evaluate their US hiring strategies and ensure strict compliance, as officials warn the suspension will last 'as long as it needs to' until hiring practices change.