The US government has suspended eight major technology firms, including Microsoft, Infosys, Tata Consultancy Services, Wipro and HCL Technologies, from hiring skilled international workers permanently through the Permanent Labor Certification Program, or PERM. New and pending PERM applications are frozen.
The suspension directly affects Indian tech workers who hold the majority of H-1B temporary visas and relied on PERM to obtain green cards and permanent residency. According to the National Foundation for American Policy, nearly one million Indian nationals were waiting for employment-based green cards as of December 2025, representing 79% of all pending applications. The NFAP projects wait times ranging from five to 179 years for highly skilled Indians seeking employment-based immigration, depending on visa category.
Industry analysts expect minimal business impact. Nasscom, India's tech trade association representing a $300 billion sector, noted that Indian companies have reduced H-1B dependence and hired more locally. Wipro stated over 80% of its US workforce is locally hired. Tata Consultancy Services reported single-digit PERM applications in the past two years. TCS filings fell from 1,804 two years ago to two in 2025-26. HDFC Securities brokerage said the impact on tech firms would be minimal, as PERM-linked jobs represent only a small revenue share.
But the human impact extends beyond business concerns. A senior executive at one of the eight firms told the BBC on condition of anonymity that the restriction will not "break the business" but affects workers more intensely. "A good number of people we know are stuck in a space where they have spent some years in the US but their green card application hasn't moved. Even if they are ready to move back to India, their children don't want to because they grew up here," the executive said.
Researchers at Stop AAPI Hate reported a sharp increase in anti-South Asian online sentiment since the 2024 US election, with Indian immigrants and H-1B visa holders frequent targets. Vice President JD Vance referred to H-1B workers as "foreign indentured servants," drawing criticism from India's foreign ministry which called the remark "unwarranted" and "deeply offensive" for colonial connotations. Vance later acknowledged the rhetoric was "imperfect."
Poorvi Chothani, founder of immigration law firm LawQuest, noted many workers borrowed heavily to study and build US careers. As rules tighten, they face fewer options and reduced ability to absorb costs. Ahmet Gulek, postdoctoral fellow at Stanford's Immigration Policy Lab, said alternate residency pathways exist but may not be feasible. Workers could move to non-suspended firms, but Gulek noted uncertainty about whether those firms would hire immigrants given "the fear of retaliation." The EB-5 investor route requires at least $800,000 investment, which some workers cannot afford.