US Suspends Work Visa Program for Microsoft and Indian IT Firms

The US administration has suspended access to the Permanent Labor Certification Program for Microsoft and several large Indian IT companies, citing alleged abuse of the worker visa system. The companies named include Cognizant Technology Solutions, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.

Vice President JD Vance said the suspensions would be indefinite. Labor Secretary Keith Sonderling said multiple federal investigations were active in relation to the program.

The decision puts fresh pressure on technology companies that rely on foreign workers for their US operations. It also adds to the administration's wider effort to increase hiring and training of American workers.

Which companies have been suspended?

The administration named Microsoft along with six major technology services companies in connection with the suspension.

Company	Action mentioned	US market reaction
Microsoft	Permanent Labor Certification Program suspended	Earlier gains were pared
Cognizant Technology Solutions	Program suspended	Shares fell nearly 1.4%
Infosys	Program suspended	ADRs fell more than 3.5%
Tata Consultancy Services	Program suspended	No market reaction provided
Wipro	Program suspended	ADRs fell more than 3.5%
HCL Technologies	Program suspended	No market reaction provided
Capgemini	Program suspended	No market reaction provided

Sonderling said the administration had multiple active federal investigations into the matter. The named companies did not immediately respond to requests for comment, while the vice president's office and the US Labor Department also had not provided an immediate response to those requests.

Why has the US taken this action?

Vance accused companies of making improper representations when applying for the labour certification program. He said the administration believed the representations were fundamentally illegitimate and therefore illegal.

The Permanent Labor Certification Program allows US employers to support foreign workers seeking permanent residency. For technology companies, the program can be important because it gives workers on temporary visas a route towards permanent legal status.

The suspension therefore affects more than a single visa application process. It can also affect how companies retain foreign employees who are already working in the US and seeking longer term immigration status.

Microsoft has a long history of employing workers in the US through H 1B visas, intracompany transfer visas and visas for recent university graduates. The labour certification process has been an important part of its support for some guest workers seeking permanent legal status.

The development adds to recent Microsoft workforce changes in 2026, although the suspension is an immigration policy action and is separate from the company's workforce restructuring.

What did JD Vance say about Microsoft?

Vance singled out Microsoft during a briefing in Washington. He alleged that the company had abused the system more than any other company in the US.

He also said the administration did not want to harm Microsoft. Instead, he said the company should grow by employing and supporting American workers.

Vance also named Adobe while urging technology companies to change their employment policies. His comments reflect the administration's broader focus on increasing the share of US workers employed by major technology companies.

The remarks came shortly before President Donald Trump was scheduled to honour Microsoft CEO Satya Nadella with a National Medal of Science award at a Washington summit focused on US technology and innovation.

Nadella had also joined other technology and artificial intelligence executives at a White House luncheon the previous week to discuss safeguards for artificial intelligence.

How did the market react?

The suspension triggered a negative reaction in some of the listed technology companies with US traded securities.

Cognizant shares fell nearly 1.4% in New York trading. American depositary receipts of Infosys and Wipro each fell more than 3.5%.

Microsoft initially gained before giving up part of those gains.

The move comes against a broader backdrop of pressure on Indian IT companies from developments in the US technology and employment market. WeloMoney has also tracked Indian IT stock movements as investors assess changes affecting the sector.

The immediate share price moves show that investors are watching the effect of US immigration policy on technology companies with significant exposure to American operations. However, the source does not provide estimates of the financial impact of the suspension on individual companies.

Why does the visa policy matter to Indian IT firms?

Indian technology companies have large US operations and depend on access to skilled workers to serve clients in the American market. Changes to immigration rules can affect how companies recruit workers, move employees across borders and retain foreign employees over longer periods.

The H 1B visa system has been an important route for foreign technology workers entering the US. The administration has also taken steps to make it harder for companies to use H 1B visas to attract foreign talent.

The latest suspension involves the Permanent Labor Certification Program, which is different from the H 1B program. The labour certification process is linked to permanent residency applications for foreign workers, while H 1B visas provide temporary employment status.

For companies such as Infosys, TCS, Wipro, HCL Technologies and Cognizant, any restrictions on foreign worker pathways could affect workforce planning in the US. The source, however, does not quantify how many employees at each company could be affected.

US technology sector faces a wider immigration debate

The suspension comes as the US technology industry faces greater pressure over its use of foreign workers.

The Trump administration has argued that technology companies should train and hire more American workers. Business groups, meanwhile, have warned that restrictions on foreign workers could reduce the available labour supply and affect growth.

The disagreement is particularly relevant for technology companies because many rely on specialised workers. The administration's position is that companies should create more opportunities for American workers, while industry groups have raised concerns about access to skilled labour.

The issue is also broader than Indian IT services companies. The action against Microsoft shows that large US technology companies are also facing scrutiny over their use of foreign workers.

US expands immigration scrutiny beyond companies

The administration also announced investigations involving foreign exchange visa holders at nine universities, including Harvard University, Stanford University and MIT.

The US Labor Department's inspector general said the investigations would focus on J 1 visa holders. At universities, these workers and researchers often include international PhD candidates and visiting scholars.

The separate investigations show that the administration's scrutiny is extending across different categories of foreign workers and institutions.

For technology companies, the immediate issue is the suspension of the labour certification program. The duration of the suspension is uncertain because Vance said it would remain in place until the administration believed its concerns had been addressed.

What companies and investors will watch next

The next developments will depend on the federal investigations and whether the administration changes or maintains the suspensions.

Companies will also need to assess how the policy affects their ability to support foreign employees seeking permanent residency in the US. Any further changes to H 1B rules could add another layer of pressure on technology employers.

For investors, the developments to watch include:

• The outcome of the federal investigations
• Any changes to the labour certification suspension
• Further US immigration policy changes affecting technology workers
• Company comments on workforce planning in the US
• Share price reactions at Infosys, Wipro and other affected technology companies

The source does not provide a timeline for the investigations or say when the suspended companies could regain access to the program. Vance's statement that the suspensions are indefinite means the next official announcements from the US administration will be important for the affected companies.

Frequently asked questions

What happened to the US work visa program for Indian IT firms?

The US administration suspended access to the Permanent Labor Certification Program for Microsoft and several major technology companies, including Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini. The administration cited alleged abuse of the worker visa system and said multiple federal investigations were active.

Which Indian IT companies were named in the suspension?

The Indian IT companies named were Cognizant Technology Solutions, Infosys, Tata Consultancy Services, Wipro and HCL Technologies. Capgemini and Microsoft were also named in connection with the suspension.

How did Infosys and Wipro shares react?

Infosys and Wipro American depositary receipts each fell more than 3.5% during the reported trading session. Cognizant shares fell nearly 1.4% in New York trading, while Microsoft pared earlier gains.

What is the Permanent Labor Certification Program?

The Permanent Labor Certification Program allows US employers to support foreign workers seeking permanent residency. The program can therefore help companies retain foreign employees who are seeking longer term legal status in the US.

Why is Microsoft affected by the suspension?

Microsoft has a large US workforce that includes employees using H 1B visas, intracompany transfer visas and visas for recent university graduates. The company also uses the permanent labour certification process to support some guest workers seeking permanent legal status.

Will the suspension be permanent?

The administration has said the suspensions are indefinite, not that they are permanently closed. Vance said they would remain in place until the administration believed its concerns had been addressed.