The United States has halted permanent employment-based immigration applications for eight major technology companies, including Microsoft, Infosys, Tata Consultancy Services, Wipro, and HCL Technologies, according to a recent policy update.

The suspension freezes new and pending applications under the Permanent Labor Certification Program, or PERM, which serves as the primary route for foreign workers to obtain green cards after securing temporary H-1B visas. Indian nationals, who hold the majority of H-1B visas, have historically relied on this pathway to achieve long-term residency and citizenship in the U.S.

The move aligns with broader restrictions on skilled-worker immigration under the current administration, though experts note that its direct impact on corporate staffing may be limited. Nasscom, India’s technology industry trade body, reported that Indian firms have increasingly shifted toward domestic hiring, reducing reliance on H-1B visas and the PERM process.

Company statements reflect this trend. Wipro confirmed that over 80% of its U.S. workforce is locally hired. Tata Consultancy Services noted only a handful of PERM applications in recent years, while Microsoft emphasized that its H-1B filings are primarily for retaining existing employees rather than recruiting new international talent.

Data from a Business Standard report, citing PERM Tracker, indicated a sharp decline in TCS’s PERM filings—from 513 in 2023–24 to just two in 2025–26. No filings were recorded for Infosys or Wipro in the current cycle. Attempts by BBC to solicit comment from all eight affected companies received no response.

HDFC Securities, a financial services firm, assessed that the suspension would have minimal financial consequences for tech firms, as PERM-linked roles represent a small fraction of their overall revenue. However, the executive-level impact may be more pronounced on individuals.

A senior U.S.-based manager from one of the suspended firms, speaking anonymously, noted that many long-term employees are caught in immigration limbo—having built careers in the U.S. but unable to advance toward permanent residency. Some are considering relocation to India, though their children, raised in America, may resist the move.

The policy shift has coincided with rising hostility toward Indian immigrants and H-1B holders. The nonprofit Stop AAPI Hate documented a surge in anti-South Asian online harassment following the 2024 U.S. election, with Indian professionals frequently targeted.

U.S. Vice President JD Vance previously referred to H-1B workers as “foreign indentured servants,” a phrase he later described as imperfect. The comment drew condemnation from India’s foreign ministry, which labeled it “deeply offensive” and rooted in colonial rhetoric.

Poorvi Chothani, an immigration attorney and founder of LawQuest, highlighted the financial and emotional toll on Indian professionals who invest heavily in education and early career development in the U.S. Tighter rules now limit their options and increase the cost of staying.

Alternative pathways to permanent residency exist but remain narrow. These include categories for individuals with exceptional achievements or those whose work serves national interests, as well as the EB-5 investor program, which requires a minimum investment of $800,000. Experts caution that even these routes may face future restrictions.

As of December 2025, nearly one million Indian nationals were awaiting employment-based green cards, accounting for 79% of all pending applications. The National Foundation for American Policy estimates wait times could range from five to 179 years depending on visa category and filing date.

The PERM suspension is expected to face legal challenges, but its implementation signals a tightening of U.S. immigration policy toward high-skilled foreign workers. Industry analysts suggest that while demand for Indian tech talent remains strong, the channels for accessing it may evolve.

Some firms are exploring offshore expansion and remote work models to maintain access to global talent pools. Post-pandemic normalization of distributed teams has increased acceptance of offshore staffing, particularly for cost-efficient operations.

For Indian professionals, the traditional narrative of building a career in the U.S. through H-1B and green card pathways may be shifting. Whether through relocation, alternative visas, or new immigration categories, the future of work between the U.S. and India continues to adapt to evolving policy and market dynamics.