US Green-Card Freeze: What Indian H-1B Professionals Need to Check Now

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The Trump administration’s suspension of employment-based green-card processing for eight technology companies has created a new uncertainty for Indian professionals in the United States. But the immediate consequences depend less on whether a worker holds an H-1B visa than on where the worker’s permanent-residency application stands.

The US action announced on October 8 targets the Permanent Labor Certification, or PERM, programme, a key step through which employers sponsor foreign workers for employment-based green cards. The companies named include Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe, according to Reuters. The suspension covers new applications and pending PERM cases for the affected employers while investigations continue.

For Indian workers, the critical distinction is between a green-card case that has not yet entered the labour-certification process, one awaiting a Department of Labor decision, one that has already received certification, and one that has progressed to the US Citizenship and Immigration Services (USCIS).

These stages are not interchangeable. Nor does a suspension affecting an employer’s PERM participation automatically mean that every H-1B visa, approved immigrant petition or pending adjustment-of-status application held by that employer’s workers has been cancelled.

The practical question is whether a worker’s employer can continue the next required step, whether an existing filing remains valid, and whether the worker has enough time left on their immigration status to manage a delay.

What the US government has suspended, and what remains uncertain

The PERM process requires an employer to establish that it has met applicable labour-market requirements before sponsoring a foreign worker for a job that requires labour certification. The employer generally must obtain certification from the Department of Labor before proceeding with the relevant employment-based immigrant petition.

Vice President JD Vance defended the administration’s broader approach to foreign-worker programmes by alleging that companies had benefited from hiring foreign workers at the expense of Americans.

“You make a ton of money by undercutting the wages of American workers, replacing them with people who probably should not be in the United States of America to begin with,” Vance said, according to a report published by the Hindustan Times that attributed the remarks to him.

The allegations are part of the administration’s stated justification for increased scrutiny. They should not, however, be treated as proof that every affected company or every individual employee has violated immigration law.

For workers, the immediate issue is the reach of the suspension. Reuters reported that the freeze blocks both new and pending PERM applications involving the targeted companies.

That is more consequential than a pause on new sponsorships alone: a worker whose employer has already submitted a labour-certification application could face a delay at a stage that had been expected to move towards completion.

However, PERM is administered by the Department of Labor, while I-140 immigrant petitions and I-485 adjustment-of-status applications are handled by USCIS. The suspension of one stage should not be interpreted as an automatic blanket suspension of every stage administered by the other agency.

The precise treatment of individual cases will depend on the scope of the government’s action, the employer involved and the status of each filing. Workers should obtain written confirmation from their employer’s immigration team or independent immigration counsel rather than assume that a pending case will either continue normally or be cancelled.

Four groups of Indian workers face different risks

Workers whose PERM applications are pending

This group faces the most direct immediate disruption if its employer is among those suspended. A case awaiting a Department of Labor decision may not progress while the suspension remains in effect.

The Department of Labor’s official processing-time data, updated on October 5, 2026, showed an average of 336 calendar days for PERM applications in analyst review, based on August 2026 processing data. That figure is a general processing average, not a prediction of how long a suspended case will remain delayed.

Workers should establish the exact PERM filing date, current case status, whether an audit or other review is pending, and whether the employer has received any notice relating to the suspension. They should also ask whether the employer expects to challenge the action or provide further instructions.

Workers who have not started PERM

These workers may face a more fundamental problem: their employers may be unable to begin or complete the labour-certification process while the suspension applies.

A worker who has only received an informal assurance that the company will sponsor a green card should not assume that a case has been initiated. The first steps can include assessing the role, obtaining a prevailing-wage determination and conducting the required recruitment before filing PERM.

An employee should ask whether the employer has formally initiated the process, whether any preliminary steps can continue, and whether the company has an alternative lawful sponsorship route. A National Interest Waiver or another employment-based category may be relevant for some individuals, but eligibility is specific to the worker and cannot be assumed simply because the employer’s PERM route is blocked.

The distinction matters particularly for workers approaching the end of their H-1B eligibility, because they may have less time to absorb a prolonged interruption.

Workers with approved labour certification

An approved PERM application represents a completed labour-certification stage. The next step for a typical employer-sponsored case is filing Form I-140, the immigrant petition, with USCIS.

These workers should determine whether their employer has already filed the I-140 and whether USCIS has issued a receipt notice. If labour certification has been approved but the I-140 has not been filed, the employer needs to clarify whether the suspension affects the use of that certification and whether it can lawfully proceed.

Approval of PERM alone does not confer permanent-resident status or guarantee that the green card will be granted. The validity of the certification, the applicable filing deadlines and the terms of the suspension must be checked for the specific case.

A worker should not assume that an already approved labour certification has been revoked merely because the employer has been suspended from the programme. Equally, the worker should not assume that the employer can use it without restriction.

Workers with an I-140 or I-485 already in progress

The risks differ according to which form has been filed and whether the worker is eligible to move to the next stage.

  • I-140 pending: USCIS is reviewing the employer’s immigrant petition. Workers should ask counsel whether the PERM suspension affects the petition’s supporting certification or the employer’s ability to respond to any request for evidence.

  • I-140 approved, I-485 not yet filed: The worker may still be waiting for an immigrant visa number to become available. An approved I-140 does not itself grant a green card or independent permission to remain in the United States.

  • I-485 pending: The worker has applied to adjust status, subject to eligibility and visa availability. The effect of the employer-specific action on this application must be assessed separately; the PERM suspension alone does not establish that the I-485 has been automatically cancelled.

  • I-485 pending for at least 180 days: Certain employment-based applicants may qualify to change jobs under the statutory portability rules, provided the other conditions are met, including the requirement for a new job in the same or a similar occupational classification. USCIS sets out these rules in its Policy Manual.
Workers in these categories should preserve their I-140 approval notices, I-485 receipt notices, priority-date records, employment documents and any correspondence from USCIS. Before changing employers or withdrawing an application, they should obtain case-specific legal advice.

The H-1B question: a green-card delay is not automatically a visa cancellation

An H-1B visa and an employment-based green card serve different purposes. H-1B status permits qualifying temporary employment under the applicable rules; a green card provides lawful permanent-resident status.

The suspension described in Reuters reports is directed at PERM participation by named employers. It does not, by itself, establish that all existing H-1B approvals held by those companies’ employees have been cancelled.

The more immediate concern for some workers is the relationship between the green-card process and the rules governing extensions beyond the usual six-year H-1B limit.

Certain workers can qualify for extensions under provisions associated with a pending or approved employment-based green-card process. Eligibility depends on the specific legal requirements and timing of the case. A PERM delay could therefore have consequences for a worker who is relying on a qualifying filing to support a future extension, even if the H-1B approval itself remains valid.

Workers approaching the end of their authorised stay should ask an immigration lawyer to review:

  • The date their current H-1B status expires, as shown by their immigration records.

  • Their total time spent in H-1B status, including any potentially relevant time outside the United States.

  • Whether they qualify for an extension beyond six years and which statutory provision applies.

  • Whether a pending or approved PERM or I-140 case satisfies the timing requirements for that extension.

  • Whether another employer, a change of status or another lawful immigration option is available.

A worker should not rely on the mere existence of a green-card sponsorship commitment as evidence that an H-1B extension will be approved.

India’s green-card backlog makes the timing more consequential

Even before the latest suspension, Indian professionals faced substantial waits for employment-based permanent residency because demand exceeds the number of immigrant visas available in several categories.

According to the US State Department’s October 2026 Visa Bulletin, India-born applicants face significant backlogs in employment-based green-card categories. The final-action date for EB-2 applicants, covering professionals with advanced degrees and individuals with exceptional ability, is November 1, 2013. For EB-3 applicants, which includes skilled workers and professionals, the date is January 1, 2014.

These dates are not the dates on which green cards will necessarily be issued to individual applicants. A worker’s priority date, preference category, eligibility and the availability of a visa number all matter. The bulletin’s final-action dates indicate which priority dates are eligible to proceed to final adjudication, subject to the applicable rules.

The distinction between a labour-certification delay and a visa-number backlog is important. An employee may have a pending PERM application but still be years away from a green card. Another may already have an approved I-140 and be waiting for the priority date to become current. The new suspension can affect the first worker at an earlier procedural stage, while the second worker’s immediate obstacle may remain visa availability.

The freeze also does not reset an existing priority date automatically. Workers should obtain confirmation of the priority date associated with their case and ask counsel whether any change to their employer, petition or immigration category could affect it.

Why the corporate impact may be smaller than the individual impact

Reuters reported on October 9 that Indian IT companies had reduced their reliance on PERM and increased local hiring in the United States. Between October 2024 and September 2025, Indian IT firms accounted for less than 2% of PERM applications, according to the report.

That figure offers context for the likely impact on the industry, but it should not be read as proof that fewer than 2% of Indian IT workers or Indian H-1B holders are affected. It measures the share of PERM applications attributed to Indian IT firms over a specified period, not the share of individual workers caught in the suspension.
For a company, a reduced dependence on employer-sponsored permanent residency may limit operational disruption. For a worker who has spent years in the United States and is relying on one employer to complete a green-card case, the consequences can be much more personal.

A delayed filing could complicate career decisions, family planning, home purchases and the choice between remaining in the United States and returning to India. Workers with children approaching key educational milestones or spouses whose immigration status depends on the principal applicant may face additional uncertainty.

The key issue is not simply whether companies can hire American workers or continue delivering projects. It is whether individual employees can preserve their lawful status and continue pursuing permanent residency while their employer’s access to a critical immigration process is restricted.

What affected workers should check now

The first step is to obtain a written account of the case’s current status from the employer’s immigration team. Employees should ask for the relevant filing dates, receipt numbers, approval notices and any government communication that specifically concerns their employer or application.

The next step is to separate the immediate question of immigration status from the longer-term question of permanent residency. A worker whose H-1B status expires soon needs an urgent assessment of extension eligibility; a worker with an approved I-140 but no available visa number needs advice focused on the priority date and the next permissible step.

Workers should also establish whether the employer-specific suspension covers their particular case, whether an existing certification or petition remains usable, and whether an independent immigration lawyer can identify a lawful alternative route. They should not resign, change employers, withdraw petitions or assume that a new sponsor can simply take over the existing process without professional advice.

For workers who have not yet begun PERM, the immediate priority is to determine whether their employer can initiate sponsorship at all. For those with pending labour certification, it is to understand the effect of the suspension on the existing application. For workers further along, it is to verify which stages have already been completed and which remain legally available.

The Department of Labor publishes official PERM processing information through its , while USCIS provides guidance on employment-based petitions, adjustment of status and portability through its .

Finally, the US green-card freeze is not a universal cancellation of Indian workers’ immigration cases. It is an employer-specific restriction on a crucial part of the permanent-residency process, with consequences that vary according to the stage of each application and the terms of the government’s action.

For Indian H-1B workers, the most urgent questions are whether their employer is covered, whether their PERM case is pending or complete, whether an I-140 or I-485 has been filed, and whether their current immigration status depends on a filing that could be delayed.

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