The Trump administration has halted Cognizant’s ability to file new applications under a critical employment-based green card program. Federal officials are investigating alleged fraud related to immigration programs utilized for hiring foreign workers.
Investigation Details
According to the U.S. Department of Labor’s Office of Inspector General, Cognizant’s PERM (Program Electronic Review Management) filings have been suspended. Labor Department Inspector General Anthony D’Esposito shared this announcement, emphasizing ongoing investigations involving alleged fraud in both the PERM and H-1B programs. The inquiry is carried out with the White House Fraud Task Force and other agencies.
Additional suspensions include H-1B processing for Cloudera, another prominent U.S. software firm specializing in data and AI platforms.
The Role of PERM
The PERM program is a necessary step in the green card process for U.S. employers sponsoring foreign workers. It allows employers to demonstrate that no qualified American worker is available for the position, which will not negatively impact U.S. workers’ wages or conditions. This process is crucial for foreign employees in the U.S. on H-1B visas aiming for permanent residency.
“Threats to American workers will NOT be tolerated,” D’Esposito stated.
Response and Reactions
Although no charges have been filed against Cognizant, specific allegations remain undisclosed. Senate Judiciary Committee Republicans, including Chairman Chuck Grassley and Ranking Member Dick Durbin, supported the suspension, having previously scrutinized Cognizant’s hiring practices.
The suspension stops Cognizant from filing new PERM applications during the investigative period. However, existing PERM approvals, green cards, and H-1B visas remain unaffected. USCIS data shows Cognizant has secured 3,510 H-1B visa petitions approval up to June 30 of fiscal year 2026.
Understanding H-1B
The H-1B visa permits U.S. employers to recruit foreign workers for specialized positions requiring a bachelor’s degree or equivalent expertise. Many tech companies, including Cognizant, are heavy users of this visa program. For H-1B workers, the PERM certification is the initial step in acquiring an employment-based green card.
Potential Impacts on Technology Sector
The investigation could affect tech firms that extensively use employment-based visa programs. As a significant user of the H-1B program, any extended suspension on Cognizant’s PERM filings might delay green card sponsorships requiring new labor certifications.
Background on Cognizant
Based in Teaneck, New Jersey, Cognizant was established in 1994 and emerged from Dun & Bradstreet’s tech division. Employing approximately 351,600 people by the end of 2025, the company maintains a robust presence in India with about 256,900 employees.
Critics have pointed to job ads fulfilling PERM requirements directing applicants to immigration units, perceived as targeting foreign workers already employed by those firms.
Broader Context and Administration Measures
The Trump administration has intensified enforcement of H-1B regulations. This year, settlements were reached with companies like Compunnel Software Group over hiring practices linked to temporary visa holders. Plus, the Labor Department disqualified several employers from the program.
Changes include a revised H-1B selection process prioritizing higher wages, proposals for increased fees, ending grace periods for laid-off workers, reviewing employer practices, and revisiting work authorization for certain H-4 spouses.
These measures aim to safeguard U.S. workers and uphold the immigration system’s integrity.
For further details, contact Newsweek editors Matt Cannon and Tony Phillips.
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