'Handcuffs await': US suspends Cognizant’s green card filings amid visa fraud probe

The US Department of Labour has suspended India-founded, US-listed technology giant Cognizant’s ability to apply for new green card sponsorships, amid an investigation into alleged visa fraud and a wider Trump administration crackdown on alleged abuse of the H-1B visa programme.

The department’s Inspector General Anthony D’Esposito announced the suspension, warning that the government would take action against companies it believes threaten American workers.

“Threats to American workers will NOT be tolerated. Alongside @WHFraudTF, we’re following facts, fraud and finances. Handcuffs await,” D’Esposito said in a post on X.

The suspension affects Cognizant’s PERM filings. PERM, or Permanent Labour Certification, is the first step employers generally take towards sponsoring foreign workers for employment-based green cards.

D’Esposito separately announced that US technology company Cloudera had also faced a suspension of its PERM filings.

The action against Cognizant comes as the company is undergoing an investigation into alleged visa fraud. The development could affect foreign workers seeking permanent residency through the company, although the suspension concerns new filings rather than automatically cancelling existing green card applications or visas.

Founded in Chennai in 1994, Cognizant is now headquartered in the United States and has become one of the largest corporate users of the H-1B visa programme.

According to US Citizenship and Immigration Services data cited in the report, Cognizant has received 3,510 approved H-1B visa petitions, putting it behind Amazon, TCS, Infosys, Apple and Microsoft.

Trump administration steps up visa crackdown

The action comes against the backdrop of the Trump administration’s aggressive efforts to tackle what it describes as abuse of the H-1B programme.

The administration launched “Project Firewall” in September last year, targeting employers suspected of abusing the visa system.

The H-1B programme allows US employers to temporarily hire foreign workers in specialised occupations. Under current law, 65,000 qualifying foreign workers can receive H-1B visas or status annually, with an additional 20,000 places available under the advanced-degree exemption.

The Labour Department’s latest action signals that scrutiny is extending beyond H-1B applications to the longer-term immigration process for foreign workers.

D’Esposito’s announcement followed a cryptic and strongly worded message on US Labour Day, 7 September, indicating that the department was pursuing companies over alleged violations involving foreign-worker programmes.

For Indian technology companies and their employees, the development could add to uncertainty around US immigration policies, particularly for workers who rely on employer sponsorship to transition from temporary work visas to permanent residency.