The Trump administration has temporarily halted Cognizant’s participation in a crucial employment-based green card program. This action stems from an ongoing investigation by federal authorities into alleged fraud related to immigration programs used for hiring foreign workers. The U.S. Department of Labor’s Office of Inspector General announced this decision.
Investigation Details
Labor Department Inspector General Anthony D’Esposito disclosed that Cognizant’s PERM filings were suspended while authorities examine possible fraud in the PERM and H-1B programs. This inquiry involves the White House Fraud Task Force and other officials.
Meanwhile, H-1B processing has also been suspended for software company Cloudera, a U.S. enterprise offering data and AI platforms. Contact attempts for commentary were made to Cognizant, Cloudera, and the U.S. Department of Labor outside regular business hours.
PERM Program Overview
The PERM program, overseen by the Labor Department, is typically the initial step in acquiring an employment-based green card. It permits U.S. employers to sponsor foreign employees, often those on H-1B visas, for permanent residency. The employers must prove no qualified U.S. individuals are available for the position and that hiring a foreign worker will not negatively impact local workers’ wages or conditions.
“Threats to American workers will NOT be tolerated,” D’Esposito asserted.
No criminal charges have been filed against Cognizant, and specific allegations are not yet public.
Senate Reaction
Republicans on the Senate Judiciary Committee have supported the suspension. GOP Chairman Chuck Grassley and Ranking Member Dick Durbin had previously raised concerns about Cognizant’s hiring practices.
Program Implications
This suspension halts Cognizant from initiating new PERM requests during the investigation. However, existing PERM approvals, employment-based green cards, and H-1B visas remain unaffected. USCIS Employer Data Hub reports that Cognizant received approval for 3,510 H-1B petitions by the end of fiscal year 2026.
The H-1B visa allows U.S. companies to employ foreign workers in specialty fields requiring a bachelor’s degree or similar expertise. Many technology firms use this program for positions like engineers and software developers.
PERM certification is a crucial step for many H-1B workers toward gaining an employment-based green card. Once approved, employers can file an immigrant petition with U.S. Citizenship and Immigration Services for the worker.
About Cognizant
Cognizant is a major user of the H-1B program. Founded in 1994 in Teaneck, New Jersey, as part of Dun & Bradstreet, Cognizant has a significant workforce, especially in India, with approximately 351,600 employees worldwide by the end of 2025.
Past inquiries, such as a Newsweek investigation, noted job advertisements aimed at fulfilling PERM requirements seemed targeted at current foreign workers, drawing criticism from some advocates.
Trump Administration Policies
The current administration has intensified enforcement of H-1B regulations. The Justice Department previously settled cases with Compunnel Software Group, LanceSoft, and Elegant Enterprise-Wide Solutions over hiring practices involving temporary visa holders. The Labor Department also lists several companies, like GowraTech LLC and Renotek Group LLC, as disqualified from the H-1B program.
Policy changes have included replacing the lottery system with a process favoring higher-paid workers, implementing a $103,265 fee for certain petitions, and expanding a $4,000 biometric fee for some applications. A separate $100,000 fee proposal was eventually struck down.
Further proposals seek to end grace periods for laid-off H-1B workers, increase program scrutiny, and revoke work authorization for certain H-4 spouses. Officials state these measures aim to safeguard U.S. workers and bolster immigration system integrity.