U.S. Suspends Cognizant’s Green Card Application Amid Fraud Investigation

The Trump administration has temporarily halted Cognizant’s participation in a crucial employment-based green card program. This action follows an investigation by federal authorities into alleged immigration program fraud. The U.S. Department of Labor’s Office of Inspector General is leading the probe, with Inspector General Anthony D’Esposito confirming the suspension.

D’Esposito announced on social media that PERM filings by Cognizant have been put on hold. The White House Fraud Task Force and other officials are involved in the investigation, focusing on fraud allegations within the PERM and H-1B programs. Meanwhile, the H-1B processing for software firm Cloudera has also been suspended.

The PERM program, managed by the Labor Department, is often the initial step in the green card process. It allows employers in the U.S. to sponsor foreign workers, frequently those on H-1B visas, for permanent residency. Employers must demonstrate that there are no qualified U.S. workers available for the job and that foreign hires won’t negatively impact local wages or working conditions.

There are no criminal charges currently against Cognizant, and officials have withheld detailed allegations. Senate Judiciary Committee Republicans have shown support for the move. GOP Chairman Chuck Grassley and Ranking Member Dick Durbin had previously raised concerns about Cognizant’s hiring methods.

The suspension affects new PERM applications but does not cancel existing PERM approvals or visas. USCIS data shows Cognizant received approval for 3,510 H-1B visa petitions through June 2026. The H-1B visa permits U.S. employers to hire foreign professionals in specialized fields requiring at least a bachelor’s degree.

For many holding an H-1B visa, PERM certification is the starting point for obtaining a green card. Once PERM is approved, employers can submit an immigrant petition for the worker through U.S. Citizenship and Immigration Services. This investigation could impact tech companies heavily reliant on employment-based visas.

Cognizant, headquartered in the U.S., is a major player in the H-1B visa program. A prolonged suspension might delay green card sponsorships for employees needing new labor certifications. Founded in 1994, Cognizant is a prominent IT and consulting firm based in Teaneck, New Jersey, employing over 350,000 people worldwide.

The Trump administration has intensified H-1B rule enforcement. Recent years saw settlements with companies over hiring practices related to visa holders. Companies such as GowraTech LLC are disqualified from the program. Changes to the H-1B program have included replacing the lottery with a preference for higher-paid workers and proposing increased fees for large employers.