BOOM! Administration Shutting Down Foreign Worker Flow to Companies That Abuse Programs

The administration announced sweeping enforcement actions targeting alleged abuse of the H-1B visa and PERM programs, aimed at preventing the import of foreign labor to replace American workers in the information technology sector. Indefinite suspensions from the PERM program were issued for several large IT firms, including Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech, and Capgemini. In addition, Microsoft and Adobe were placed under indefinite PERM suspensions due to ongoing federal investigations. Officials described the move as a necessary step to protect American workers from companies that allegedly favor cheaper foreign labor over qualified U.S. workers. The action follows findings by an anti-fraud task force chaired by Vice President JD Vance, which purportedly showed Microsoft laid off thousands of American workers while hiring a similar number of non-citizens through the H-1B program. The administration characterized the H-1B visa as the entry point for foreign workers and PERM as the means for them to stay, arguing that these practices undermine domestic labor. While the goal is to prioritize American workers, the administration did not provide a timeline for when the affected companies might regain eligibility. The piece notes that broader concerns about doctors and residency slots—driven by subsidies—exist, but those issues were not addressed in this action.