Federal Investigation Suspends Cognizant’s Green Card Applications

The Trump administration has halted Cognizant’s capacity to submit new applications under a significant employment-based green card initiative. This decision follows a federal investigation into possible fraud tied to immigration programs utilized for hiring foreign workers.

The U.S. Department of Labor’s Office of Inspector General announced this suspension. Inspector General Anthony D’Esposito communicated on X that the PERM filings of Cognizant have been temporarily suspended. Authorities are probing alleged fraud concerning both the PERM and H-1B programs. This investigation occurs in collaboration with the White House Fraud Task Force and other officials.

Additionally, the inspector general has also paused H-1B processing for Cloudera, a prominent U.S. enterprise software company that specializes in data and AI platforms for businesses.

The PERM program, overseen by the Labor Department, marks the initial stage in the employment-based green card procedure. U.S. employers can sponsor foreign workers, generally already working on H-1B visas, for permanent residency. This follows a recruitment process that must prove that no qualified U.S. workers are available and hiring a foreign employee won’t negatively impact wages or working conditions for similarly employed Americans.

“Threats to American workers will NOT be tolerated,” D’Esposito remarked on X.

Although criminal charges against Cognizant haven’t been declared, details concerning specific allegations remain undisclosed. Senate Judiciary Committee Republicans expressed support for this investigative move, highlighting past inquiries into Cognizant’s hiring practices led by GOP Chairman Chuck Grassley and Ranking Member Dick Durbin.

While the suspension restricts Cognizant from advancing new PERM applications during the investigation, it doesn’t invalidate pre-existing PERM approvals, employment-based green cards, or H-1B visas already granted. Cognizant secured approval for 3,510 H-1B visa petitions through June 2026, according to the USCIS Employer Data Hub.

The H-1B visa is a temporary, non-immigrant permission that allows U.S. companies to employ foreign experts in specialized occupations needing a bachelor’s degree or equivalent skills. Many tech firms utilize this program to recruit skilled professionals like engineers and software developers.

For several H-1B visa holders, PERM certification acts as the first step towards attaining an employment-based green card. Once approved, employers may lodge an immigrant request with U.S. Citizenship and Immigration Services on behalf of the worker.

The ongoing investigation might impact tech companies significantly reliant on employment-based visa programs. Cognizant, a major H-1B visa program user, might experience delays in sponsoring green cards for affected staff needing new labor certifications.

About Cognizant

Headquartered in Teaneck, New Jersey, Cognizant is a distinguished IT and consulting firm. Originating in 1994 as Dun & Bradstreet’s technology division, Cognizant maintains substantial operations in India. By the end of 2025, it reported approximately 351,600 employees worldwide, including about 256,900 in India.

A previous Newsweek investigation unveiled that certain job ads placed for foreign worker sponsorship requirements were directed to immigration departments, sparking criticism from advocates who argue these postings cater more to workers already employed on temporary visas.

The Trump administration has undertaken firm actions against potential abuses within the H-1B program. The Department of Justice settled charges with firms like Compunnel Software Group and others pertaining to recruitment practices linked to temporary visa holders. Further changes imposed include replacing the lottery system with a process prioritizing higher salaries, proposing new fees, and raising security measures.

Additional proposals targeted the grace period for laid-off H-1B workers finding new jobs while intensifying assessments of employer conduct related to the program. Officials aim to protect U.S. workers and enhance immigration system integrity with these changes.