The US has announced it would suspend eight technology firms, including Microsoft, India's Infosys, Tata Consultancy Services, Wipro and HCL Technologies, from hiring skilled international workers on a permanent basis through a widely used visa pathway. This was reported by Qazaqyia.kz citing BBC News.
New and pending applications under the Permanent Labor Certification Program, or PERM, have been frozen. This is a big blow to Indians who hold a majority of H-1B visas - a temporary visa for specialists - which they used to work in the US while relying on PERM to get a green card and, ultimately, citizenship.
The latest announcement is in line with Trump's push for stricter skilled-worker immigration rules, which tech firms have been adapting to and, therefore, the impact on businesses may be minimal, experts say.
Nasscom, the trade association of India's $300bn (£226bn) technology industry, says that Indian companies have reduced the dependence on H-1B visas and are hiring more locally. "Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also relatively limited," the association adds.
Wipro said in a statement that more than 80% of its workforce in the US is locally hired. Tata Consultancy Services (TCS), said its PERM applications were in single digits in the last two years. Microsoft said in a statement that it has filed for H-1B visas mostly to retain existing staff, not to import new workers.
A report in Business Standard newspaper, citing PERM Tracker, said, TCS' applications filings fell to two in 2025-26 from 513 in the previous year and 1,804 in the year before that. The report said no records were found for Infosys and Wipro for 2025-26.
BBC's email to all eight companies asking questions about the impact of the restriction and how they were supporting affected employees in the US remained unanswered.
Brokerage firm HDFC Securities said the impact on tech firms would be minimal, as PERM-linked jobs make up only a small share of revenue, even if higher-paid American workers replace them.
But the US government's decision has an impact beyond business. A US-based senior executive with one of these eight firms told the BBC on condition of anonymity that the new PERM restriction will "not break the business", but the impact is more "intense" at a human level. "A good number of people we know are stuck in a space where they have spent some years in the US but their green card application hasn't moved. Even if they are ready to move back to India, their children don't want to because they grew up here," he said.
Recent policy moves have deepened uncertainty and amplified online hostility towards Indian immigrants and H-1B visa holders. Researchers at Stop AAPI Hate, a US non-profit that combats anti-Asian and Pacific Islander discrimination, have reported a sharp increase in anti-South Asian online sentiment since the 2024 US election, with Indian immigrants and H-1B visa holders being frequent targets.
While barring the eight tech companies from PERM, US Vice President JD Vance too referred to foreign professionals holding H-1B visas as "foreign indentured servants". While he later acknowledged that it was an "imperfect" rhetoric, his remark drew sharp criticism from India's foreign ministry which called it "unwarranted" and "deeply offensive" for the colonial connotation.
Poorvi Chothani, founder and managing partner of global immigration law firm LawQuest, said many came to the US for better prospects, borrowing heavily to study and build careers. But as rules tighten now, they have fewer options and less ability to absorb the costs.
Immigration experts believe that as pathways for residency become limited, some may reconsider their future in the US, while others may choose not to move at all.
Ahmet Gulek, Postdoctoral Fellow at Stanford's Immigration Policy Lab, told BBC that despite alternate ways to get residency, not many may be feasible. While moving to another firm not covered by the suspension is an option, he flags that it's unclear if those firms would be open to hiring immigrants given "the fear of retaliation". Besides, it's also a tough time to change jobs.
The technology industry has already been reshaped by layoffs, cost-cutting and the rapid adoption of artificial intelligence (AI), making career moves tougher.
But there are other routes to a US green card. People with exceptional accomplishments or whose work advances national interests may be eligible for categories that bypass the PERM labour certification process. Applicants can also qualify for permanent residency by investing at least $800,000 in eligible US enterprises.
Gulek warns some of these categories "may be targeted next." While Chothani says some are so keen to stay in the US that they are considering the EB-5 investor route but may not have enough capital to invest.