In brief
The Trump administration suspended the PERM labor certification process for eight major U.S. tech firms, a move that threatens the path to permanent residency for thousands of Indian IT professionals who rely on H‑1B visas. While Indian companies claim a shift to local hiring, many employees face stalled green‑card applications and projected back‑logs that could stretch for decades. The policy has also sparked online hostility toward South Asian workers and prompted criticism from the Indian government. With legal challenges likely, the tech sector may reassess its talent pipeline, forcing professionals to reconsider their futures in the U.S. or explore alternative visa routes.
Breakdown of a Career Path
For millions of Indians, the road to the ultimate career aspiration had a familiar script: an engineering degree, a tech services job, a posting in the U.S., repeated visa renewals and finally a green card that gave permanent residency. But that may end soon.
Earlier this month, the U.S. announced it would suspend the Permanent Labor Certification (PERM) hiring of ongoing tech firms such as Microsoft, Infosys, Tata Consultancy Services, Wipro and HCL Technologies. The freeze on new and pending PERM applications affects a large share of H‑1B workers — the temporary visa for specialists — who use the PERM route to obtain green cards.
Nasscom, the trade association of India’s $300bn tech industry, says firms have reduced dependence on H‑1B visas and are hiring more locally. More than 80% of the U.S. workforce at Wipro is locally hired; Tata Consultancy Services reports issuing only single‑digit PERM filings in the last two years.
The U.S. government’s restriction has implications beyond business. The policy has inflamed anti‑Asian sentiment online, and Vice President JD Vance described H‑1B holders as “foreign indentured servants”, a remark later rejected by India’s foreign ministry as “deeply offensive.”
A senior executive from one of the eight firms told the BBC that the new PERM restriction would “not break the business”, but it would create a “human” impact. Many employees find themselves stuck with green‑card applications stalled, while those who have returned to India face families reluctant to leave the U.S. where they were raised.
In addition to the PERM freeze, the Trump administration imposed a $100,000 fee on certain new H‑1B petitions and is considering a $70,000 fee for universities endorsing international students in post‑graduation work programs. Recent court rulings have struck down some of these fees, but the climate of restriction remains.
According to the National Foundation for American Policy, nearly one million Indian nationals were waiting for employment‑based green cards as of December 2025, representing 79% of all pending applications. The organization projects wait times ranging from five to 179 years for highly skilled Indians filing labor‑certification or employment‑based petitions from January 2026.
While alternative pathways exist — such as categories for exceptional talent, investor visas (EB‑5) requiring at least $800,000, or employer‑exempt categories that bypass PERM — most of these have limited availability and may face future restrictions. Some professionals are contemplating returning to India, others are exploring state‑of‑the‑art remote work or shifting to employers not under the suspension.
The tech industry’s response remains cautious. With litigation in the offing and a noted shift toward off‑shoring to reduce costs, the U.S. talent pipeline may pivot toward other nationalities or alternate visa frameworks, but the demand for Indian tech talent persists.
