Trump Freezes Green Cards For Cognizant, Putting India’s IT Model At Risk

Trump administration scrutiny of foreign-worker hiring has intensified after the US Department of Labor suspended Cognizant’s PERM filings amid an investigation into alleged H-1B and PERM fraud, putting India’s IT business model under fresh pressure. Cloudera’s PERM filings have also been suspended. Labor Department Inspector General Anthony D’Esposito said the probe is being conducted with the White House Fraud Task Force, warning that “threats to American workers will NOT be tolerated.”

PERM, or Permanent Labor Certification, is not a visa but a key step in the employment-based green card process. Employers generally must obtain a prevailing wage determination and show that hiring a foreign worker will not adversely affect similarly employed US workers. The freeze blocks Cognizant from filing new PERM applications while the investigation continues. It does not automatically cancel existing H-1B status or approved green cards.

The impact is significant. Cognizant had about 351,600 employees globally at the end of 2025, including 256,900 in India and 41,600 in North America, and reported $21.1 billion in 2025 revenue. USCIS data cited in the original report showed 3,622 approved continuing-employment H-1B petitions in FY2025, compared with 5,293 for TCS and 2,634 for Infosys. Cognizant also had 11,091 certified H-1B labour-condition applications in 2025.

PERM sponsorship can be an important retention tool for employees who spend years in America on temporary visas and seek permanent residency.

The squeeze extends beyond Cognizant. The Labor Department has proposed changing prevailing-wage rules for H-1B and PERM programmes, while the administration has proposed a $103,265 fee for new H-1B visas, after an earlier $100,000 fee was blocked by a federal judge.

For India, the stakes are huge. Nasscom estimates the technology sector generated $283 billion in FY2025 revenue, including about $224 billion in exports, with the US among its key markets.

Companies may respond through greater US hiring, offshore and nearshore centres in India, Mexico and Canada, and increased AI automation. But contracts, specialised skills, security requirements and client relationships limit how quickly work can move.