The Leaders Column

• 09 October, 2026 • Comments (0)

H-1B Green Card Suspension: What the US Really Announced and What It Means for You

If you woke up to headlines saying the US has stopped H-1B visas and green cards, take a breath. That is not what happened.

On October 8, 2026, Vice President JD Vance and Labor Secretary Keith Sonderling announced an H-1B green card suspension that applies to eight named companies. It pauses one specific step of the green card process for them. It does not end the H-1B programme, and it does not cancel anyone’s visa.

Still, if you are an H-1B worker waiting for a green card, the details matter a lot. Here is what we know so far, in plain language.

What did the US government actually announce?

At a White House press conference, officials said the Department of Labor will stop accepting new applications and stop processing pending ones under a programme called PERM for eight employers. The government says it is investigating alleged fraud and compliance problems at these companies.

Officials argued that some of the employers filed large numbers of H-1B and PERM applications while also cutting jobs, which they say may have hurt American workers. Vance went furthest. He said Microsoft laid off 6,000 US workers last year while getting 6,300 H-1B visas and almost 3,000 green cards, and he accused the company of replacing laid-off staff with foreign hires.

These are the administration’s allegations. No final findings have been announced. Microsoft has pushed back, saying it pays H-1B employees the same as anyone else doing comparable work.

What is PERM, and why does this step matter?

PERM stands for Program Electronic Review Management. It is the Department of Labor’s way of checking that an employer can sponsor a foreign worker for a permanent job without hurting the wages or job chances of American workers.

For most employer-sponsored green cards, there are three broad stages:

PERM labour certification: the employer sets the wage and tests the job market.
I-140 immigrant petition: the employer files with US Citizenship and Immigration Services.
Green card: the worker moves ahead when a visa number is available.

PERM is step one. If step one is frozen for an employer, the later steps can’t begin for that employer’s workers.

Which companies are affected?

Eight companies were named:

Technology companies: Microsoft, Adobe and Capgemini
Indian IT firms: TCS, Infosys, Wipro, HCLTech and Cognizant

The Labor Department said that since 2009, the six big IT outsourcing firms it named have received more than 230,000 H-1B approvals and over 100,000 permanent labour certifications.

If your employer is not on this list, nothing has changed for your case so far. One immigration attorney quoted in the coverage said employers that have not received a government notice can generally keep managing PERM cases under the existing rules.

Is the H-1B visa itself cancelled?

No. This is the biggest point of confusion.

An H-1B is a temporary work visa. PERM is a step towards permanent residence. The announcement did not cancel existing H-1B visas. You can keep valid H-1B status while your green card process is delayed, as long as you keep meeting the usual requirements.

How could the H-1B green card suspension affect you?

It depends on where you are in the process.

Your employer is on the list and has not started PERM. This group faces the most immediate disruption. If your employer can’t file, you may have to wait before the green card process can even begin, and you can’t lock in a place in the queue through a new filing.

Your PERM application is pending. Processing is reported to be halted for the affected employers, so expect delays. How individual cases will be handled has not been explained yet.

Your PERM is already approved. This is unclear. The authorities have not said whether approved certifications, or the petitions that follow, will be affected. Don’t assume an existing approval has been cancelled.

You are close to the six-year H-1B limit. US rules allow extensions beyond six years in some situations while you pursue permanent residence. A delay in starting PERM could complicate that plan. If this is you, get advice on your own case soon.

There are also open questions. Officials have not said how long the suspension will last or how a company can be reinstated.

Why is the US doing this?

The H-1B programme has been under scrutiny for years. Critics say it is open to abuse and can undercut American workers.

The announcement also fits a bigger pattern. A day earlier, the Department of Homeland Security proposed charging schools $70,000 for each initial Optional Practical Training authorisation and $30,000 for each additional one, with public comments open until November 9. Vance also accused nine universities of misusing J-1 exchange visas. Together, these steps point to a wider push on how foreign workers and students enter and stay in the US.

What are experts and industry saying?

The industry body Nasscom said immigration and skilled talent mobility are two separate issues. It added that Indian tech companies have cut their dependence on H-1B visas in recent years and have been hiring more people locally in the US.

Entrepreneur Vivek Wadhwa argued that big tech firms are not the real abusers. He said the focus should be on staffing middlemen who exploit the system for profit.

Economist Chad Sparber of Colgate University told Reuters that keeping skilled foreign workers out does not protect American jobs, because the work can simply move abroad.

What should you do now?

You don’t need to panic, but it’s smart to act early.

Find out if your employer is one of the eight. Ask HR directly.
Ask where your case stands. Check with HR or your immigration lawyer what they have been told.
Keep copies of everything. That means approval notices, receipts, pay slips and PERM paperwork.
Plan early if you’re near your six-year limit. Ask about your options now, not later.
Trust official sources. Follow Department of Labor and USCIS notices and your lawyer, not social media rumours.

The bottom line

The H-1B green card suspension is real, but it is narrower than the headlines made it sound. It pauses PERM filings for eight named companies while investigations continue. It does not cancel H-1B visas, and it is not a blanket ban on Indian workers or tech firms.

For workers at the affected companies, the uncertainty is genuine, and the next few weeks should bring more clarity. Everyone else should stay alert, keep their paperwork in order and wait for official updates.

This article is for general information only and is not legal advice. Immigration rules are changing quickly, so speak to a qualified immigration attorney about your own case.