Imagine building a career in America, only to discover that your path to permanent residency has hit a roadblock. That is the uncertainty now facing some Indian technology professionals after the US government suspended eight major tech companies from a key Green Card processing programme.

On October 8, 2026, the Trump administration suspended new and pending applications under the Permanent Labour Certification (PERM) programme involving Tata Consultancy Services, Infosys, Wipro, HCLTech and four other technology companies. Officials say the move targets alleged misuse of foreign-worker programmes and aims to protect American jobs.

But does this mean Indian employees must leave America? Not necessarily. Existing H-1B visas are not automatically cancelled by this decision, although the route to permanent residency could become more complicated. Here is what the latest US visa news means for workers, employers and anyone planning a career in America.

Which Companies Are Affected by the US Green Card Curbs?

The US Department of Labor has named eight companies:

• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• HCLTech
• Cognizant
• Microsoft
• Adobe
• Capgemini

The department said it would not accept new or process pending PERM applications involving these employers. The restriction concerns a specific immigration process, not a blanket ban on their US operations.

What Is PERM, and Why Does It Matter?

PERM stands for Program Electronic Review Management. It is a labour certification process required for many employer-sponsored employment-based Green Cards.

Under this process, an employer must meet recruitment requirements and demonstrate that hiring a foreign worker will not adversely affect the wages and working conditions of comparable American workers.

After certification, the employer generally proceeds with Form I-140, an immigrant petition filed with US Citizenship and Immigration Services (USCIS). The employee can then move towards the final residency stage when eligible and subject to visa availability.

A US Green Card provides permanent resident status, while PERM is one step in the process of obtaining it. The suspension blocks this route for applications involving the named companies; it does not close every employment-based Green Card category. 

Will Existing H-1B Visa Holders Be Affected?

This is the question many Indian professionals are asking.

An H-1B visa allows eligible foreign professionals to work temporarily in the United States. A Green Card, by contrast, provides permanent residency.

The PERM suspension does not automatically invalidate existing H-1B visas or terminate the status of their holders. India's Ministry of External Affairs also clarified that the decision does not, by itself, affect existing H-1B visa holders and their dependants.

However, employees with pending PERM applications could face delays. Those whose employers planned to begin the process may also need to reconsider their timelines.

Workers approaching the normal six-year H-1B limit should pay particular attention. Certain employees qualify for extensions beyond six years under specific rules linked to the timing of labour certification or immigrant petitions. Eligibility depends on individual circumstances, so the suspension does not automatically mean every affected worker must leave the country.

For employees, the practical step is to check their case with their employer's immigration team or a qualified US immigration lawyer.

Why the Impact on Indian IT Companies Could Be Limited

The latest US visa news comes as several affected companies have already reduced their use of the PERM route.

According to The Economic Times, TCS and HCL America recorded 2 and 59 certified PERM cases, respectively, during the first nine months of fiscal 2026. Infosys and Wipro had no recorded certified cases during that period.

These figures refer to certified cases, not the total number of applications filed. They cover October 2025 to June 2026 and should not be treated as full-year totals.

Former HCL Technologies CEO Vineet Nayar also argued that Indian IT companies accounted for fewer than 1,400 of 117,849 PERM certifications in the preceding year, suggesting a limited direct industry impact.

The figures provide useful context, but they do not reveal how many individual employees could face delays or how long the suspension will last.

What Have TCS, Infosys and NASSCOM Said?

Tata Consultancy Services has said the suspension will not affect its workforce strategy or customer engagements. The company cited single-digit PERM applications over the previous two years and highlighted its local hiring strategy across 31 US offices and delivery centres. It has also reiterated plans to hire an additional 15,000 employees in America over five years.

Infosys has similarly said it does not expect a material impact on its operations. In its company filing, it highlighted its US-based workforce and technology and innovation hubs. 

NASSCOM has also said Indian technology companies have reduced their dependence on H-1B visas while expanding local hiring in the US. However, these company-level assessments do not remove the uncertainty faced by individual employees.

Why Has the US Government Taken This Step?

The Trump administration says the restrictions are intended to protect American workers and address alleged abuse of immigration programmes.

Vice President JD Vance accused Microsoft of using foreign-worker programmes while laying off American employees. Microsoft disputed his characterisation, saying around 80% of its H-1B applications in fiscal 2026 involved existing employees seeking extensions or changes of status. 

These remain contested claims. The suspension itself does not establish that every company named committed fraud or unlawfully displaced American workers.

What Should Indian IT Professionals Do Now?

For Indian IT workers, the immediate priority is to understand how the decision applies to their individual circumstances.

Check the status of any pending PERM application with your employer.

Ask whether a planned filing is covered by the suspension.

Review your H-1B validity and extension deadlines.

Seek qualified legal advice if you are approaching the six-year limit.

Do not assume that your existing visa has been cancelled or that every Green Card route is closed.

A US Green Card remains a separate immigration process from holding a temporary work visa. Understanding that distinction can help employees make informed decisions rather than react to alarming headlines.

The Bottom Line

The suspension creates a new hurdle for Indian professionals seeking permanent residency, but it is not an automatic ban on working in America. The immediate business impact may be limited for companies with fewer PERM cases, while individual employees could still face significant uncertainty.

For readers following US visa news, the next important development will be whether the restrictions change, how pending cases are handled and what options affected workers have.