Updated on: October 10, 2026
US Green Card Suspension 2026 refers to a US Department of Labor freeze on one step of employment-based immigration, not a ban on all Green Cards. This guide separates what the government announced from what is still unknown.
On October 8, 2026, the Labor Department said it will not accept new Permanent Labor Certification (PERM) applications from eight technology employers. It will also not process their pending ones. Existing H-1B visas are not cancelled by this announcement.
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What Happened in the US Green Card Suspension 2026?
Vice President JD Vance announced the action with Labor Secretary Keith Sonderling on Thursday, October 8. Sonderling said the department will neither accept new PERM applications involving the eight companies nor process pending ones. Vance said it will last “as long as it needs to.”
The stated reason is fraud. Vance said the program had become rife with it, and officials cited active federal investigations. Sonderling said the eight firms had requested almost 3 million foreign workers since 2009. The department has not published the data behind that figure.
These are allegations, not findings. As of October 9, no criminal charges had been reported, and the department had not posted a written notice or named the rule it relies on.
Microsoft was singled out. Vance alleged it laid off 6,000 US workers in 2025 while receiving more than 6,000 H-1B approvals. Microsoft responded that about 80% of its roughly 6,000 H-1B filings last fiscal year were extensions or status changes for existing employees.
Cognizant was already frozen. On September 8, Inspector General Anthony D’Esposito suspended its new PERM filings, and Cloudera’s, during a fraud probe.
Which 8 Technology Companies Are Affected?
| Company | Headquarters | Business Category |
|---|---|---|
| Microsoft | United States | Software and cloud |
| Adobe | United States | Creative and document software |
| Cognizant | United States | IT services |
| Infosys | India | IT services |
| Tata Consultancy Services (TCS) | India | IT services |
| Wipro | India | IT services |
| HCL Technologies (HCLTech) | India | IT services |
| Capgemini | France | IT services and consulting |
Sonderling said “Tata” in his remarks. Media reports identify it as TCS.
What Is the PERM Green Card Process?
PERM is the Labor Department step where an employer shows it tried to recruit US workers and found no qualified, available candidate. It is the first step of most employment-based Green Cards.
Where the US Green Card Suspension 2026 Fits in the Process
- Employer recruitment and labor certification: the PERM step, handled by the Labor Department.
- Immigrant petition: Form I-140, filed with USCIS.
- Green Card application or consular processing: Form I-485 inside the US, or a visa interview abroad.
Only step one sits with the department that made the announcement. Not every category needs PERM. EB-1 extraordinary ability and EB-2 national interest waiver cases can skip it, and each stage has its own eligibility rules.
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Does the Suspension Affect H-1B Visa Holders?
An H-1B is a temporary work visa. PERM is a labor clearance. A Green Card is permanent residency.
| Comparison | H-1B Visa | PERM Certification | Green Card |
|---|---|---|---|
| What it is | Temporary work visa | Labor Department clearance | Permanent residency |
| Who handles it | USCIS | US Department of Labor | USCIS or State Department |
| Affected now? | Not by this action | Yes, for the eight employers | Not directly addressed |
India’s foreign ministry said PERM is distinct from the H-1B programme and the suspension does not by itself affect H-1B validity or the status of visa holders and families. Reports say the department has not addressed already-certified PERM, I-140 or I-485 cases.
A hypothetical example: Aarav is an engineer on an H-1B at one of the eight firms. If his employer never filed PERM, the process cannot start. If it filed and the case is pending, it stalls. If PERM is already certified, the announcement does not mention his next steps. His H-1B stays valid in all three cases. This is an illustration, not legal advice.
How Will Indian IT Professionals Be Affected?
The likeliest effect is delay. Employees at TCS, Infosys, Wipro, HCLTech and other named employers may see Green Card cases pause. This Green Card suspension for Indian IT companies also makes sponsorship plans less certain.
H-1B holders close to the six-year limit are most exposed, immigration lawyers told Business Insider, because green card progress often allows extensions. Indian-born workers already face long per-country queues. One Atlanta lawyer expects most people to wait it out or have time to switch jobs.
Every case differs. Ask your employer’s immigration team or an immigration attorney about yours.
What Does This Mean for the Indian IT Industry?
Reported responses are measured. Nasscom said Indian tech firms had sharply reduced H-1B use and that relatively few of their workers seek Green Cards through PERM. By late Friday morning, IIFL reported TCS shares up 5.5%, Wipro 3.2%, HCL 2.9% and Infosys 2.7%.
Our analysis: the US PERM suspension affects long-term retention more than project delivery, so a sudden revenue shock looks unlikely. The slower costs are attrition, more local US hiring and higher compliance spending.
Confirmed Facts vs Possible Consequences of the US Green Card Suspension 2026
| ✓ Confirmed | ? Possible, Not Confirmed |
|---|---|
|
✓
Eight employers named
|
?
More employers could be added
|
|
✓
New and pending PERM applications not processed
|
?
Longer H-1B extension problems
|
|
✓
Existing H-1B visa validity not cancelled
|
?
Potential court challenges
|
|
✓
No end date announced
|
?
Criminal charges (none reported)
|
What Happens Next?
Watch for a written Labor Department notice, the legal basis it cites, new names on the list, company statements and court challenges. One lawyer expects lawsuits within a week. No one can say when the restrictions will end.
Frequently Asked Questions
Has the US banned all Green Cards in 2026?
No. The action covers PERM filings involving eight named employers.
Which eight tech companies face the US PERM suspension?
Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini.
Are existing H-1B visas cancelled?
No. India’s foreign ministry said the suspension does not by itself affect H-1B validity.
Can Indian software engineers still apply for US jobs?
Yes. The announcement does not bar Indian workers from US employment.
What happens to pending PERM applications?
Sonderling said the department will not process pending applications involving the eight firms.
Does the suspension affect F-1 students?
Not directly. F-1 is a student visa, and the announcement concerns PERM filings by the eight employers.
Conclusion
The US Green Card Suspension 2026 is narrow in scope but uncertain in duration. Your H-1B is not cancelled, yet PERM cases at eight employers are frozen. We will update this article when the Labor Department publishes its written notice.
