The United States has suspended several major technology companies from the PERM labor certification programme, a crucial process for employers seeking permanent residency for foreign workers, including employees on H-1B visas. The action affects several prominent IT companies, including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini and Adobe.

The development followed an announcement by US Vice President JD Vance on Thursday regarding Microsoft. Vance accused the technology giant of misusing the PERM system and urged companies to give greater preference to American workers.

Announcing the decision, JD Vance said, “Thanks to an ongoing investigation, we have decided to suspend the PERM programme for Microsoft, which means they will no longer be able to take those H1Bs and apply for permanent resident status within the United States of America.”

Vance said the administration wanted companies to “hire great American workers” and criticized businesses for replacing US workers with foreign employees.

What is the PERM Programme?

The PERM programme is a labor certification procedure that US employers generally must complete before sponsoring foreign employees for permanent residency under several employment-based green card categories.

PERM is different from the H-1B visa programme. While H-1B visas allow skilled foreign professionals to work temporarily in the United States, PERM is part of the process that can eventually lead to permanent residency.

The suspension could create uncertainty for companies and foreign workers planning future employer-sponsored green card applications. However, a halt on new PERM filings does not automatically mean that already approved green card cases will be affected, according to immigration reports.

US Also Proposes $70,000 OPT Fee

The PERM action comes shortly after the US Department of Homeland Security proposed a $70,000 fee for international students seeking to participate in the Optional Practical Training (OPT) programme.

The proposed policy would require colleges and universities to pay the fee for each international student entering the OPT programme. OPT allows eligible foreign students to work in the United States in jobs related to their field of study while completing their education or after graduation.

Under the current system, international students are generally eligible to work through OPT for up to one year after completing their studies. Graduates from certain science, technology, engineering and mathematics (STEM) programmes can qualify for an additional two-year extension.

Under the proposed fee structure, educational institutions would have to pay $70,000 for each student's initial OPT application. A further $30,000 fee would apply to each renewal.

Growing Uncertainty for Foreign Workers

The proposed OPT fees and the suspension of the PERM programme could increase uncertainty for international students, foreign professionals and companies that rely on skilled workers from overseas.

For technology companies that sponsor foreign employees for permanent residency, restrictions on the PERM process could make the green card pathway more difficult to navigate. At the same time, the proposed OPT fees could significantly increase the cost of employing international graduates in the US.

Together, the measures signal a tougher approach by the US administration toward programmes that allow foreign workers and international students to remain and work in the country.