Explainer-The tech green-card program under attack from Trump

On October 9, the United States government announced it is halting some major tech and IT firms, including Microsoft and Cognizant, from accessing a crucial green card program called the Permanent Labor Certification (PERM). The suspension follows allegations of fraud, with U.S. officials claiming that companies exploit the system to replace American workers with cheaper foreign labor.

This move is part of the Trump administration's broader effort to curb the use of skilled foreign labor. The PERM program, launched in 2005, aims to expedite the lengthy processing times of the previous paper-based Alien Employment Certification program. It allows U.S. employers to sponsor foreign workers' permanent residency, with the Department of Labor certifying that no qualified American workers are available for the job and that employing the foreign worker won't negatively impact American wages or working conditions.

The suspension affects companies like Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. However, firms such as Meta, Amazon, and Google are unaffected. This decision comes as the Trump administration continues to crack down on visas for foreign workers, claiming they cost American jobs.

Critics argue that such measures could make the U.S. less attractive to highly skilled foreign talent and could force them to seek employment abroad.