US Green Card Freeze Leaves Indian Tech Workers Stuck in Limbo

Key points

• The US government indefinitely suspended Microsoft, Infosys, TCS, Wipro, HCL, and five other firms from the PERM program, blocking new and pending green card applications.
• Nearly one million Indian nationals are currently waiting for employment-based green cards, representing 79% of total pending applications, with projected wait times ranging from five to 179 years.
• Vice President JD Vance accused Microsoft of replacing 6,000 laid-off American workers with foreign hires, a claim Microsoft President Brad Smith rejected as 'completely off base.'
• Indian tech associations report that companies have already reduced reliance on H-1B visas, with over 80% of Wipro’s US workforce now locally hired and TCS filing single-digit PERM applications recently.
• Immigration experts warn that while business impacts may be minimal, the policy creates severe personal uncertainty for workers who cannot easily return home due to family ties or financial investments.

Background

This development follows a series of restrictive immigration measures in 2026, including a struck-down $100,000 fee for new H-1B petitions and a proposed $70,000 fee for universities recommending international students for post-graduation work. The PERM suspension is part of a broader trend aimed at tightening skilled-worker immigration rules, which has intensified scrutiny of major tech employers and their reliance on foreign talent.

How outlets are covering it

BBC and GeekWire highlight the human cost of the suspension, noting that many workers are stuck in the US without clear paths to residency, while some may consider alternative routes like the EB-5 investor visa. GeekWire emphasizes Microsoft’s defense that most visa petitions were for existing employees, not new hires, and that the company hired 9,200 Americans in its last fiscal year. KRWG Public Media offers a critical view, arguing that government interference in hiring decisions may push companies to offshore work to avoid regulatory burdens, potentially harming the US economy. While the administration frames the move as a crackdown on fraud, industry experts and some commentators argue it disrupts legitimate career paths and may drive talent to other countries.

Why it matters

The suspension affects not only individual careers but also the broader tech industry’s ability to attract and retain global talent. It signals a shift in US immigration policy that could reshape how tech companies operate globally, potentially leading to increased offshoring of work and reduced innovation in the US. For Indian workers, it challenges the traditional path from engineering degree to US residency, forcing a reevaluation of long-term career strategies.

What to watch

The PERM suspension may face federal court challenges, as previous immigration measures have. Companies may explore alternative visa categories or increase local hiring to mitigate the impact. Workers may consider other residency routes, such as the EB-5 investor visa, though this requires significant capital. The policy’s long-term effects on the US tech sector and global talent flows remain uncertain, with ongoing debates about the balance between immigration control and economic competitiveness.