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US Halts Cognizant Green Card Applications Amid Visa Fraud Probe

The US Department of Labor has suspended permanent residency filings by IT major Cognizant following a federal investigation into alleged misuse of employment visa programmes. The action threatens to disrupt career prospects for thousands of foreign technology workers employed by the Indian outsourcing giant.

LSN India · 9 September 2026

The suspension of Cognizant's PERM (Permanent Employment) filings marks a significant development in ongoing scrutiny of how major technology companies utilise visa sponsorship programmes in the United States. PERM filings are a critical step in the green card process, allowing employers to sponsor foreign nationals for permanent residency. The investigation centres on allegations that Cognizant may have misused H-1B visa programmes and other employment-based immigration channels, raising questions about hiring practices across the tech sector.

For foreign technology professionals working at Cognizant, the suspension creates considerable uncertainty regarding long-term career planning and immigration status. Thousands of employees from India and other countries who were in the green card pipeline now face potential delays or complications in obtaining permanent US residency. The suspension does not automatically cancel existing applications but effectively halts the processing of new PERM filings until the investigation concludes.

The action reflects broader scrutiny of how foreign workers are recruited and sponsored by major technology companies. US authorities have increasingly examined whether visa programmes designed to fill genuine skill gaps are being used to displace domestic workers or reduce labour costs. Cognizant, which employs a substantial portion of its 300,000-strong workforce in India, has faced previous questions about its visa sponsorship practices.

The suspension comes amid mounting political pressure in Washington regarding immigration policy and technology sector hiring practices. The investigation's outcome could have implications extending beyond Cognizant, potentially influencing how other technology companies manage visa sponsorships and permanent residency applications. Industry observers are watching the case closely as it may set precedents for regulatory enforcement in this area.