# US Suspends Microsoft and Indian Tech Firms From Visa Program Prompting Backlash

- URL: https://stocks.freetheai.org/news/us-suspends-microsoft-and-indian-tech-firms-from-visa-program-prompting-backlash-6e3c05
- Published: 2026-10-09T09:26:23Z
- Category: regulation; sentiment: bearish; impact: medium
- Symbols: [NASDAQ:MSFT](https://stocks.freetheai.org/symbols/NASDAQ-MSFT), [NASDAQ:CTSH](https://stocks.freetheai.org/symbols/NASDAQ-CTSH), [NYSE:INFY](https://stocks.freetheai.org/symbols/NYSE-INFY), [NYSE:WIT](https://stocks.freetheai.org/symbols/NYSE-WIT), [NASDAQ:ADBE](https://stocks.freetheai.org/symbols/NASDAQ-ADBE), [OTC:CAPMF](https://stocks.freetheai.org/symbols/OTC-CAPMF)
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The U.S. government has suspended several major technology and consulting firms from using the Program Electronic Review Management system, which is used for permanent labor certification. Vice President JD Vance announced the decision, accusing the tech industry of widespread fraud within the H-1B visa program. Microsoft Corporation (NASDAQ:MSFT) was singled out by the administration as a primary abuser of the system, along with major outsourcing and tech firms such as Cognizant Technology Solutions Corporation Class A (NASDAQ:CTSH), Infosys Limited Sponsored ADR (NYSE:INFY), Wipro Limited Sponsored ADR (NYSE:WIT), Adobe Inc. (NASDAQ:ADBE), HCL, and Capgemini SE (OTC:CAPMF).

The restrictions have sparked a strong diplomatic pushback from India, whose government criticized the decision as contrary to the shared economic ambitions of both countries. India's Ministry of External Affairs defended the flow of skilled workers, stating that talent mobility drives innovation, productivity, and shareholder wealth in the U.S. while creating opportunities for Indian professionals. Indian officials also took offense at the rhetoric used by the administration to describe the visa practices.

While the suspension does not impact existing H-1B visas, it could significantly disrupt the permanent residency and green card application processes for foreign tech workers. Investors will want to watch how these labor restrictions affect hiring pipelines, operational costs, and project delivery for the affected technology and outsourcing giants moving forward.

## Key points

- The U.S. government suspended Microsoft and several tech outsourcing firms from using the PERM permanent labor certification system.
- Vice President JD Vance accused the technology industry of committing widespread fraud within the H-1B visa program.
- India criticized the move, stating that skilled labor mobility benefits both economies and drives innovation and shareholder wealth.
- The suspension does not affect current H-1B visa holders but could disrupt future green card and permanent residency applications.

## Questions and answers

### What is the PERM program suspension?

The PERM program suspension blocks certain companies, including Microsoft and several IT outsourcers, from applying for permanent labor certifications for foreign workers.

### How does the visa suspension affect current H-1B workers?

The suspension does not impact existing H-1B visas, but it could disrupt ongoing and future permanent residency and green card applications.

### Why did India criticize the U.S. visa decision?

India stated that skilled talent mobility adds value to both economies, driving U.S. corporate innovation and productivity while creating opportunities for Indian workers.