The Trump administration has halted major IT firm Cognizant’s ability to submit new applications for a crucial employment-based green card program. This action comes as federal authorities probe alleged fraud in immigration programs used to employ foreign workers. The U.S. Department of Labor’s Office of Inspector General announced the suspension.
Labor Department Inspector General Anthony D’Esposito stated that the suspension of Cognizant’s PERM filings is part of an investigation examining potential fraud in both the PERM and H-1B programs. He confirmed the investigation involves the White House Fraud Task Force and other officials.
The inspector general has also paused H-1B processing for Cloudera, an enterprise software company in the U.S. providing data and AI platforms. Newsweek reached out to Cognizant, Cloudera, and the U.S. Department of Labor for comments outside of regular business hours through email.
“Threats to American workers will NOT be tolerated,” D’Esposito wrote on X.
Significance of the PERM Program
The PERM program, overseen by the Labor Department, serves as the introductory phase in the employment-based green card process. It enables U.S. employers to sponsor foreign employees, especially those on H-1B visas, for permanent residency. This sponsorship occurs after proving, through a mandated recruitment process, that no qualified U.S. workers are available and that hiring a foreign worker will not negatively impact American workers’ wages or conditions.
No criminal charges are announced against Cognizant, and officials have not detailed the allegations. The investigation stops Cognizant from submitting new PERM applications but does not affect approved ones, existing green cards, or H-1B visas.
H-1B Visa Program
The H-1B visa facilitates U.S. employers in hiring foreign workers for specialized roles requiring at least a bachelor’s degree. Many tech companies utilize this program to recruit skilled professionals like engineers and software developers. For H-1B workers, the PERM certification begins their journey to an employment-based green card, allowing employers to submit an immigrant petition on their behalf after approval.
Cognizant is a significant user of the H-1B visa program. Any ongoing suspension of PERM filings may delay green card sponsorship for affected employees needing new labor certifications.
About Cognizant
Cognizant operates as a U.S.-headquartered information technology and consulting company in Teaneck, New Jersey. Originating in 1994 as a Dun & Bradstreet technology division, Cognizant maintains considerable operations in India, reporting about 351,600 employees globally at the end of 2025, with approximately 256,900 in India.
A Newsweek investigation found some Cognizant job advertisements seemed directed towards foreign workers already at the company, inciting criticism from advocates who argue these postings appeared tailored for preexisting employees.
Enforcement Changes under Trump Administration
The Trump administration has adopted stricter enforcement of H-1B regulations. This year’s Justice Department settlements with Compunnel Software Group, LanceSoft, and Elegant Enterprise-Wide Solutions involved claims tied to hiring practices of temporary visa workers.
The administration’s changes include substituting the lottery system with a weighted process for higher-paid workers, proposing a $103,265 fee for certain petitions, and extending a $4,000 biometric fee to some applications. A $100,000 fee proposal was previously nullified by a judge.
Officials have proposed terminating the grace period for laid-off workers, intensifying scrutiny of employers’ application use, and retracting work authorization for certain H-4 visa spouses. These actions aim to safeguard U.S. workers and fortify immigration system integrity.