US Freezes Green Card Sponsorship for Major Tech Giants

The suspension affects a group of industry leaders that also includes Adobe, Cognizant, HCL, and Capgemini. While the Department of Labour will cease processing new and pending applications from these firms, the move does not automatically invalidate existing H-1B visas. Instead, it creates a significant roadblock for employees who rely on employer-sponsored certification to transition from temporary work status to a permanent Green Card.

Vice President JD Vance justified the crackdown by claiming that corporations utilize the PERM process to undercut domestic wages and bypass local hiring. This action aligns with a broader administration strategy to curb foreign labor reliance, following a previously blocked attempt to impose a $100,000 fee on new H-1B petitions. For Indian tech professionals, who represent a substantial portion of the H-1B workforce, the freeze forces a reliance on alternative, often slower, self-petition routes such as EB-1A or EB-2 National Interest Waivers.

Industry experts note that the PERM programme, established in 2005, acts as the primary bridge for skilled migration. By removing this mechanism for the targeted companies, the administration is effectively limiting the incentive for high-skilled talent to remain in the US long-term, potentially forcing firms to rethink their global recruitment strategies as the path to residency becomes increasingly obstructed.