US halts PERM green card step for Microsoft, TCS, Infosys and others

US Vice President JD Vance has stood by his description of H-1B visa holders as workers in a form of indentured servitude, saying his criticism was aimed at employers and the immigration system rather than the visa holders. His comments, and the Trump administration's move to suspend several large companies from a key step towards a US green card, have drawn a sharp response from India's government.

Key facts

• The administration has suspended several firms from the Permanent Labor Certification Program (PERM) — the first step that lets an employer sponsor a foreign worker, such as an H-1B holder, for a green card.
• The companies named are Microsoft, Cognizant, Infosys, TCS, Wipro, HCL and Capgemini.
• Vance addressed the row at a CBS News town hall on 17 October 2026, after remarks he made at a news conference earlier in October.
• India's Ministry of External Affairs (MEA) called his earlier remarks unwarranted and deeply offensive.
• No start date, duration or end date for the PERM suspension has been announced.

What has changed for H-1B holders and green card applicants?

PERM is the first stage of the employer-sponsored route to a US green card. Suspending companies from the programme means those firms cannot take that step on behalf of a foreign worker, including an H-1B holder, while the suspension stands.

Indian technology companies are among the firms named, and New Delhi said the freeze on green card filings by companies such as TCS and Infosys runs against the shared aims of both countries. HCLTech has also commented on the suspension, in line with Infosys and TCS.

What did the Vice President say?

Speaking at a town hall on 17 October, Vance said his remarks were not aimed at H-1B holders but at the companies that bring them in and at the visa system itself. He argued that some firms lay off a US worker and hire a visa holder in their place, and that a visa holder who disagrees with a boss can lose the job and be sent home, leaving too much power with the employer. He gave the example of a company worth a trillion dollars that says it cannot find an accountant locally while firing one already on its payroll.

Vance did not withdraw his earlier comment, but accepted his wording could have been better: "To the extent that my rhetoric has been imperfect here, that's on me."

Why did the row begin?

At a news conference earlier in October, Vance described H-1B workers as indentured servants and said foreign outsourcing firms cut the pay of American workers. He said an H-1B worker earns about $20,000 less than a US citizen in the same job, and that a worker brought in by a foreign outsourcing firm earns about $48,000 less. He called on US firms to hire more American workers and stop bringing in cheaper labour from abroad.

He also referred to his family, saying his mother-in-law and father-in-law immigrated to the US from South India, and that their daughter — Second Lady Usha Vance — was born in the United States.

How has India responded?

The MEA said the remarks ignored the fact that Indian professionals in the US are highly educated and skilled contributors to its economy, and said the history of the US was shaped by generations of immigrants. It described language carrying painful historical and colonial connotations as deeply offensive.

What this means for travellers

Indian professionals and other H-1B holders working for the named companies should note that the usual employer-sponsored green card route is not currently open to them through PERM. Anyone planning US travel or work on an H-1B can follow the row closely, since it concerns the visa category and the permanent residence process rather than short-term entry rules.

No timeline for the suspension, and no next step or decision date, has been announced.