The American dream has come to a halt for thousands of Indian technology professionals dreaming of building a permanent future in the United States and here is why.
October 9, 2026: In a major escalation of the Trump administration’s immigration crackdown, the US Department of Labor has reportedly suspended the processing of new and pending PERM applications involving major technology companies, including TCS, Infosys, Wipro, HCL, Cognizant and Capgemini, potentially disrupting a key route to US permanent residency for foreign workers.
US Labor Secretary Keith Sonderling reportedly announced the action on October 8, with Vice President JD Vance criticising outsourcing practices that the administration says disadvantage American workers. Microsoft and Adobe were also named separately in connection with active federal investigations.
According to figures cited by the administration, the outsourcing firms had sought nearly 3 million foreign workers since 2009, received more than 230,000 H-1B approvals and secured over 100,000 permanent labour certifications.
The distinction is crucial: the move does not cancel existing H-1B visas or other work authorisations. It targets the PERM labour-certification process, an essential step in most employer-sponsored employment-based green-card applications. Workers with affected pending cases could face delays or uncertainty about their path to permanent residency.
The immediate financial impact on Indian IT companies may be limited, as many have reduced their dependence on US work visas in recent years. However, prolonged restrictions could complicate talent retention, workforce planning and the long-term settlement plans of Indian professionals in America.
The broader message is unmistakable: Washington is tightening scrutiny of employer-sponsored immigration, raising fresh questions about the future of Indian IT talent in the US.
JANPATH NEWS NETWORK (JNN)
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