The Donald Trump administration has suspended certain Green Card application processes involving eight companies, including Indian IT giants Tata Consultancy Services (TCS) and Infosys. The move comes during investigations into nine prominent US universities over alleged misuse of exchange-visitor visas. The administration says the actions aim to tackle fraud and protect American jobs.

US Labour Secretary Keith Sonderling said the suspension covers Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Microsoft, Adobe and Capgemini.

“We will not accept any new or process any pending permanent labour certification applications involving these companies,” Sonderling said.

Vice President JD Vance accused companies of hiring foreign workers at lower wages while laying off American employees. “I’m sure that everyone here understands the game that is being played. Bring in indentured servants from outside the country, you lay off American workers, and if you’re a corporation, you make a ton of money by undercutting the wages of American workers, replacing them with people who probably should not be in the United States of America to begin with,” he said.

The restrictions could disrupt a common route to permanent residency for thousands of foreign technology workers, including Indians. However, the freeze does not appear to directly affect existing H-1B visa holders, who can work temporarily in the US. It could complicate their efforts to obtain permanent residency through employer sponsorship.

Under the Department of Labour’s permanent labour certification process, known as PERM, employers must demonstrate that hiring a foreign worker will not negatively affect the wages, working conditions or job opportunities of American workers. Most employment-based Green Card applications require this certification. Once approved, applications proceed to US Citizenship and Immigration Services.

Indian IT companies, including TCS, Infosys, Wipro and HCL Technologies, have long been major users of the H-1B visa programme, alongside Cognizant. According to USCIS data, Amazon was the largest employer of approved H-1B beneficiaries in fiscal 2026, followed by TCS, Infosys, Apple and Microsoft. Microsoft is also the largest filer of PERM applications, according to Permtrack.app, which compiles Labour Department disclosure data.

The administration has also launched investigations into nine universities, including Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology. Vance accused the institutions of using J-1 exchange-visitor visas to bring in international students and undercut American wages. Labour Inspector General Anthony D’Esposito said subpoenas had already been served.

Microsoft, Adobe, Cognizant, Infosys, HCL Technologies, Wipro and Capgemini did not immediately respond to Reuters’ requests for comment. TCS declined to comment.

The latest action follows broader efforts to discourage US employers from hiring foreign workers through the H-1B programme. In September 2025, Trump announced a $100,000 fee on new H-1B visa petitions. A US court blocked the measure in June 2026. In August 2026, the administration proposed a fresh fee of $103,265 for H-1B petitions subject to the annual cap of 85,000.