The Trump administration’s decision to suspend green card sponsorship access for several major technology and IT outsourcing companies could affect foreign professionals from countries including India and China, with Indians potentially facing the greatest exposure because they account for about 70% of H-1B beneficiaries, according to USCIS fiscal year 2025 data.
Vice President JD Vance announced the move on October 8, 2026, as the administration stepped up its crackdown on alleged abuses of the H-1B visa system. US Labor Secretary Keith Sonderling named Cognizant, Infosys, Tata, Wipro, HCL and Capgemini among the outsourcing firms facing suspension. Microsoft and Adobe were also targeted, with Sonderling citing multiple active federal investigations.
The restrictions concern the PERM labor certification process, a key step in many employer-sponsored green card applications. Their impact will depend on the scope of the suspensions and the applications affected.
India, China top list of potentially exposed countries
India has the largest representation in the H-1B program, with Indian-born beneficiaries accounting for about 70% of approved H-1B petitions in fiscal year 2025, according to the USCIS report.
China ranked second, with 49,161 beneficiaries. The Philippines followed with 5,546, while Canada recorded 4,382 and South Korea 4,195.
Other countries in Newsweek’s top 10 were Mexico, with 3,390 beneficiaries; Pakistan, with 3,380; Taiwan, with 3,161; Brazil, with 2,876; and Nigeria, with 2,420.
These figures indicate the nationalities most represented in the H-1B program, but they do not show how many workers will be directly affected by the green card restrictions. H-1B beneficiaries and employment-based green card applicants are different groups, and the actual impact will depend on the employers involved and the status of their sponsorship applications.
For Indian professionals, the development is significant because of the country’s large presence in the US technology sector and the number of workers seeking permanent residency through employer sponsorship.
Also read: Infosys says green card suspension will have no material impact; what Indians should know
How the green card restrictions could affect workers
Employers generally need labor certification from the US Department of Labor before sponsoring workers for certain employment-based immigrant categories. The PERM process is intended to ensure that hiring foreign workers does not adversely affect the wages and working conditions of US employees.
A suspension could prevent affected companies from initiating or advancing relevant labor certification applications, disrupting green card plans for some foreign employees. However, it does not automatically mean that every H-1B worker at a targeted company will lose their visa or that an existing green card will be revoked.
Workers from any nationality could be affected if their employer faces restrictions. The country-wise H-1B figures alone cannot establish which nationality will experience the greatest disruption.
Vance defended the action by arguing that some employers had used foreign labor to undercut American workers. Microsoft responded that the vast majority of its US employees are Americans.
The announcement comes amid continued scrutiny of the H-1B program. USCIS announced on July 17, 2026, that the fiscal year 2027 cap had been reached, covering 65,000 regular visas and 20,000 places under the advanced-degree exemption.
For Indian and Chinese professionals, the immediate concern is whether the suspensions will delay or disrupt employer-sponsored permanent residency applications.
