Opinion | US' Visa Policies May End Up Backfiring On Its Own Tech Industry

Updated: Oct 12, 2026 18:42 pm IST Published On Oct 12, 2026 18:42 pm IST Last Updated On Oct 12, 2026 18:42 pm IST

Published On Oct 12, 2026 18:42 pm IST

Last Updated On Oct 12, 2026 18:42 pm IST

The Trump administration's decision to suspend several major technology companies from the US Permanent Labor Certification (PERM) programme marks another consequential turn in Washington's increasingly restrictive approach to skilled immigration. The inclusion of Indian IT majors such as Infosys, Tata Consultancy Services (TCS), Wipro, and HCL Technologies, alongside Cognizant, Capgemini, Microsoft, and Adobe, underscores the widening intersection between immigration policy, domestic labour politics, and the strategic contest over technological competitiveness.

At one level, the move is being presented as an enforcement measure designed to protect American workers. At another, it raises a more fundamental question: can the United States continue to sustain its technological advantage while narrowing the pathways through which global talent enters and integrates into its economy?

PERM is an important step in the employer-sponsored employment-based green card process. It requires employers to demonstrate that qualified American workers are not available for a particular position before sponsoring a foreign national for permanent residency. The Department of Labor's reported decision to halt both new applications and pending cases involving the affected companies thus strikes at a critical stage in the transition from temporary employment to permanent settlement. Existing H-1B visas, however, have not been cancelled.

The Politics Of Protecting American Workers

The administration's justification rests on allegations of systemic abuse. Labour Secretary Keith Sonderling and Vice President JD Vance have argued that major outsourcing companies exploited the H-1B and PERM systems to substitute lower-paid foreign workers for American employees. The administration has cited the scale of foreign-worker applications and approvals associated with the companies, while Microsoft and Adobe have also been linked to active federal investigations.

The political logic is familiar. Immigration has long served as a powerful instrument of domestic mobilisation in American politics, and the Trump administration has made the prioritisation of American workers central to its economic nationalism. By targeting prominent technology companies, Washington is signalling that even strategically important industries will not be insulated from its broader immigration agenda.

Yet, the economic consequences of such a policy are less straightforward than its political appeal might suggest. The distinction between protecting domestic employment and constraining access to specialised talent is not always easy to maintain. Technology........

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