Trump Suspends Tech Companies from Green Card Program

On October 8, 2026, the United States government suspended major technology firms—including Microsoft and Adobe—alongside international IT service providers from the PERM permanent labor certification program, halting green card sponsorships amid allegations of employment fraud and worker displacement.

Department of Labor Halts PERM Applications for IT Firms

• Direct Impact: The Department of Labor halted all new and pending PERM applications for Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.
• Market Reaction: IT service equities faced immediate downward pressure as regulatory hurdles expanded past previous visa fee structures into permanent residency sponsorship pathways.
• Policy Context: The suspension coincides with broader federal initiatives, including the Department of Labor’s “Project Firewall” and ongoing scrutiny over high-skilled foreign labor programs.

Permanent Labor Certification Halts for Eight Global Firms

The U.S. government announced the suspension of eight major technology and outsourcing enterprises from the Permanent Labor Certification (PERM) program on October 8, 2026.

The targeted roster includes software giant Microsoft, application developer Adobe, and prominent IT services providers Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. According to figures provided by officials, these eight companies have sought to recruit nearly three million foreign workers and secured more than 230,000 H-1B visas alongside over 100,000 permanent labor certifications since 2009. Specific critiques highlighted that one unnamed firm laid off 6,000 American workers last year while benefiting from 6,300 temporary H-1B work visas and nearly 3,000 green cards.

Cognizant Shares Decline Amid Regulatory Intervention

Financial markets reacted immediately to the regulatory announcement. Shares of Cognizant Technology Solutions declined during early trading sessions, falling 0.5% in early trading to exchange hands at 56.76 USD—well below its 52-week high of 87.03 USD—ahead of the company’s upcoming earnings report scheduled for October 29, 2026. As noted in market coverage by Investing.com, the regulatory intervention compounds existing technical headwinds and macroeconomic uncertainties facing digital services providers ahead of upcoming corporate earnings reports.

Photo: Cibercuba

Data from U.S. immigration filings indicate that the affected companies have historically relied heavily on both temporary non-immigrant pathways and permanent residency channels. For the 2026 fiscal year, Amazon.com ranked as the largest employer of approved H-1B visa beneficiaries, followed by Tata Consultancy Services, Infosys, Apple, and Microsoft. Corporate defenders of the programs, such as Microsoft—whose chief executive Satya Nadella was hosted by Donald Trump hours after the announcement alongside other tech billionaires to honor their contributions to America—maintain that foreign employees on temporary visas are compensated at parity with domestic peers performing comparable duties. However, administration officials emphasize that the volume of foreign worker sponsorship warrants strict federal audits. Following the announcement, Adobe, Cognizant, Infosys, HCL Technologies, Wipro, and Capgemini did not immediately respond to requests for comment, while Tata Consultancy Services declined to comment, and Microsoft issued a statement defending its compensation parity.

Company	Ticker / Exchange	Market Action / Context
Microsoft Corporation		Largest PERM filer; targeted by suspension.
Adobe Inc.		Included in the Department of Labor freeze.
Cognizant Technology Solutions	NASDAQ: CTSH	Faced immediate equity downward pressure following the announcement.
Capgemini SE		Subject to suspended permanent labor certification processing.

Project Firewall Audits Corporate Sponsors as University Applications Drop

The PERM suspension forms part of an escalated federal enforcement campaign targeting high-skilled immigration pathways. Simultaneously, the Department of Labor initiated “Project Firewall” in September 2026—a campaign that has already opened approximately 200 files—to audit recruitment practices across major corporate sponsors.

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