The H-1B visa has long been a primary pathway for foreign professionals working in the United States, but President Trump’s second administration has introduced substantial restrictions, including a $100,000 payment requirement for certain new petitions and expanded federal investigations into employer usage.
And in October 2026, the administration significantly restricted permanent residence (Green Card) processing across several of the nation’s largest H-1B employers.
On Thursday, October 8, 2026, Vice President JD Vance and Labor Secretary Keith Sonderling announced that Microsoft, Adobe, and six major IT companies were suspended from the Permanent Labor Certification program, commonly known as PERM. The U.S. Department of Labor (DOL) halted both the acceptance of new PERM applications and the processing of pending applications tied to these companies.
For foreign professionals, PERM certification is the mandatory first procedural step in obtaining an employer-sponsored Green Card. Freezing PERM processing halts years of permanent residency planning, even for workers maintaining valid H-1B status and active employment.
For professionals on H-1B or similar nonimmigrant work visas, this suspension demonstrates that employment at a major tech company cannot safeguard employer-sponsored immigration timelines. For workers evaluating independent pathways to secure U.S. permanent residency, the EB-5 Immigrant Investor Program offers an established alternative.
This guide details the October 2026 PERM suspension, its direct impact on H-1B workers, and how EB-5 provides a direct avenue toward U.S. Green Cards.
What Happened in the October 8, 2026 PERM Suspension?
How Does the PERM Freeze Affect Existing H-1B Visa Status?
Why Does the PERM Freeze Create More Uncertainty for H-1B Workers?
What Broader Pattern of H-1B Restrictions Preceded This Action?
How Does EB-5 Offer a Direct Path to U.S. Green Cards?
What Career and Family Benefits Does EB-5 Permanent Residence Provide?
How to Get Started With EB-5 While on an H-1B Visa: Step-by-Step
Why H-1B Workers Should Evaluate EB-5 Options Today
What Happened in the October 8, 2026 PERM Suspension?
Which Eight Companies Were Suspended From PERM?
The Department of Labor suspended eight major corporations from PERM: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. These companies comprise key global software corporations and IT consulting firms employing tens of thousands of skilled tech workers across the United States.
The scope of the freeze impacts both new filings and existing pipelines: all pending PERM applications are officially frozen. Foreign professionals whose labor certifications were already submitted and awaiting DOL review now face indefinite processing halts despite having completed extensive recruitment preparations.
This sudden suspension leaves thousands of workers with an urgent question: when will these employers be permitted to file Green Card applications again?
The Trump administration has established no fixed end date for the suspension. Vice President Vance stated that the suspensions will remain in effect indefinitely until federal officials verify changes in corporate hiring practices. Consequently, tech employees have no official government timetable to plan around this freeze.
Why Is PERM Essential to Employer-Sponsored Green Cards?
PERM labor certification is the mandatory foundation for most employment-based Green Cards in the EB-2 and EB-3 preference categories. Administered by the U.S. Department of Labor, PERM requires employers to establish that no qualified, willing, and available U.S. workers exist for the role before filing an immigrant petition with USCIS.
The employer must complete rigid procedural stages: establishing job requirements, obtaining a certified prevailing wage determination from the DOL, and conducting mandatory U.S. recruitment. The Department of Labor must formally certify that employing the foreign national will not adversely affect the wages and working conditions of similarly employed U.S. workers.
Following PERM certification, the employer submits Form I-140 (Immigrant Petition for Alien Worker) with U.S. Citizenship and Immigration Services (USCIS). Once the I-140 is approved and the worker’s priority date is current under the Visa Bulletin, the employee may file Form I-485 for adjustment of status.
An employer’s willingness to sponsor an employee is insufficient on its own; the company must successfully clear DOL certification. Suspending PERM access halts the entire sponsorship chain before Form I-140 or Green Card adjustment filings can ever take place.
What Are the Administration’s Allegations and Microsoft’s Official Response?
The administration justified the suspensions as an enforcement measure against alleged immigration fraud and displacement of domestic labor. Administration officials alleged that the eight companies utilized foreign workers on temporary visas to replace American employees or undercut prevailing wage standards. These claims reflect the administration’s formal allegations rather than verified legal judgments against each company.
Microsoft contested the administration’s claims regarding workforce replacement. The company stated that approximately 80% of its H-1B petitions in the previous fiscal year were filed for existing employees. Microsoft also stated that employees in comparable roles receive equal pay, noting that its H-1B salaries rank among the highest across the tech sector.
Regardless of ongoing disputes between tech leadership and the administration, H-1B employees face an immediate disruption: their permanent residence pathway is tied to an employer that is legally barred from advancing it.
How Does the PERM Freeze Affect Existing H-1B Visa Status?
The PERM suspension does not revoke existing H-1B status or cancel valid visas. Foreign professionals at the eight affected companies maintain legal nonimmigrant status and work authorization under their active H-1B approvals, provided they comply with standard program terms.
The actual impact varies significantly based on each worker’s exact stage in the immigration pipeline:
- Pending PERM filings: Face indefinite processing freezes with the Department of Labor.
- Approved PERM certifications: May proceed to Form I-140 immigrant petition filing with USCIS within standard validity windows.
- Approved Form I-140 petitions: Remain valid for H-1B extensions beyond the six-year statutory cap under AC21 and retain priority dates.
- Pending Form I-485 adjustment applications: Continue processing with USCIS independently of DOL labor certification actions.
Foreign nationals should review their specific immigration records with an independent immigration attorney.
Why Does the PERM Freeze Create More Uncertainty for H-1B Workers?
How Does the PERM Freeze Impact the Six-Year H-1B Limit?
Delays in PERM processing directly threaten an employee’s ability to extend H-1B status beyond the statutory six-year limit. Standard H-1B regulations restrict total stay to six years unless the worker qualifies for post-sixth-year extensions under the American Competitiveness in the Twenty-First Century Act (AC21).
Under AC21 § 106(a), a worker can secure one-year H-1B extensions if their PERM labor certification or Form I-140 was filed at least 365 days before reaching the six-year cap. Under AC21 § 104(c), a worker with an approved Form I-140 facing per-country visa backlogs can obtain three-year extensions.
If an employer is barred from filing a timely PERM application, the employee risks exhausting their six-year clock without the required qualifying filings.
A pending PERM filed before the suspension may still support an extension under AC21 rules. Workers must review their specific filing dates rather than assuming that the suspension immediately eliminates their extension eligibility.
The uncertainty remains high: employees approaching their fourth or fifth year of H-1B status without a certified PERM face strict countdown clocks that their current employer cannot address.
What Are the Risks and Limitations of Changing H-1B Employers?
Switching employers does not automatically resolve Green Card delays because PERM labor certifications are employer- and location-specific. While portability allows an H-1B holder to transfer to a new company that is not subject to the PERM freeze, the new employer must restart the labor certification process from scratch.
A new employer must initiate prevailing wage determinations, conduct recruitment, and submit a fresh PERM application—a timeline that often spans many months before an I-140 petition can be filed.
This prolonged immigration friction impacts long-term personal stability. Families face compounding uncertainty regarding real estate purchases, decisions about children’s education, and career progression for spouses holding H-4 EADs. Even when an employee retains their job, a stalled permanent residency process complicates multi-year planning.
What Broader Pattern of H-1B Restrictions Preceded This Action?
The October 2026 PERM suspension represents the latest step in a systematic tightening of employer-sponsored immigration. In September 2025, the Department of Labor launched Project Firewall, expanding investigations and audits into H-1B wage compliance, specialty occupation classifications, and labor displacement. This initiative was paired with an administrative $100,000 fee requirement for select new H-1B petitions.
These actions reflect the administration’s regulatory scrutiny—and potential further restrictions on employer-sponsored visas.
This environment requires skilled foreign nationals to decide whether to remain fully dependent on an employer’s immigration standing. For qualified professionals, pursuing an independent immigration path like EB-5 provides freedom before regulatory hurdles increase.
How Does EB-5 Offer a Direct Path to U.S. Green Cards?
The EB-5 Immigrant Investor Program allows qualified foreign nationals to secure lawful permanent residence by making an at-risk capital investment in a U.S. commercial enterprise that creates at least 10 full-time American jobs. An approved EB-5 petition grants Green Cards to the principal investor, their spouse, and unmarried children under age 21.
Unlike nonimmigrant H-1B status, the EB-5 program is an immigrant visa category designed for direct permanent residence. The investor files as a self-petitioner, eliminating any requirement for corporate sponsorship, prevailing wage determinations, or DOL PERM labor recruitment.
For tech workers on H-1B visas, EB-5 establishes a path to obtain a Green Card independently while maintaining their current tech careers. Case approval depends on meeting statutory EB-5 criteria, documenting lawful source of funds, and satisfying job creation mandates—not employer sponsorship or PERM.
What Are the EB-5 Investment Amounts and Job Creation Requirements?
Under current EB-5 regulations, the standard minimum investment threshold is $1,050,000. For qualifying investments in a Targeted Employment Area (TEA)—which includes designated rural areas and high-unemployment areas—or qualifying infrastructure projects, the minimum investment is reduced to $800,000. Every EB-5 investment must create or preserve at least 10 full-time jobs for qualifying U.S. workers.
Most EB-5 participants invest through USCIS-approved regional centers. The regional center model allows investors to deploy capital into managed commercial projects rather than launching and operating a business directly. Under regional center rules, projects can fulfill job creation requirements through indirect and induced economic modeling in addition to direct payroll jobs.
Project due diligence is essential. Investors must evaluate project feasibility, developer capital structure, job creation buffers, and loan exit terms. Under USCIS guidelines, all EB-5 capital must remain fully at risk, meaning neither financial returns nor immigration approvals can be legally guaranteed.
What Career and Family Benefits Does EB-5 Permanent Residence Provide?
Securing permanent residence through EB-5 decouples a professional’s legal U.S. status from their employer. Permanent residents can change employers, launch startups, negotiate equity, or take career sabbaticals without needing H-1B filings, labor condition applications, or visa renewal petitions.
This autonomy eliminates immigration-imposed limits on professional growth. Career opportunities such as equity-heavy startup roles, consulting, or founding a company become immediately viable when maintaining employer sponsorship is no longer required.
The EB-5 Reform and Integrity Act of 2022 (RIA) also created reserved visa set-asides to bypass lengthy backlogs:
- Rural TEA projects: 20% of the annual EB-5 visa quota.
- High-unemployment TEA projects: 10% of the annual quota.
- Infrastructure projects: 2% of the annual quota.
These reserved categories offer current priority dates for investors from backlogged countries like India and China, avoiding the decade-long waits common in EB-2 and EB-3.
Successful EB-5 petitioners first receive two-year conditional Green Cards. Prior to the end of the two-year period, investors file Form I-829 to remove conditions by verifying that their capital remained at risk and the 10 qualifying jobs were created.
How to Get Started With EB-5 While on an H-1B Visa: Step-by-Step
1. Consult an Experienced EB-5 Immigration Attorney
Initiate your evaluation with an immigration attorney experienced in both EB-5 law and adjustment of status. Supply your complete immigration history, including current Form I-797 H-1B approval notices, previous PERM filings, and approved I-140 receipts.
Your attorney will calculate your remaining H-1B clock, evaluate family dependents, and confirm your eligibility for concurrent filing and adjustment of status within the United States. They will establish how to file an EB-5 petition concurrently with your current status while maintaining active nonimmigrant protections throughout processing.
2. Prepare Source of Funds Documentation and Investment Capital
Calculate total capital requirements, including the base $800,000 or $1,050,000 investment, regional center administrative fees, legal counsel retainers, and government filing fees. Assess capital readiness and liquidity across your household finances.
USCIS requires exhaustive legal proof verifying that all invested capital was obtained through lawful sources. Acceptable sources include accumulated salary, equity compensation, real estate sales, gifts, inheritances, or secured commercial loans. Your attorney must document the complete financial path of funds from origin to project escrow.
Begin gathering primary financial records early. Necessary evidence includes multi-year tax filings, bank account statements, W-2s, stock vesting schedules, property deeds, and wire transfer slips, which can take weeks to compile across international institutions.
3. Conduct Rigorous Due Diligence on Regional Center Projects
Evaluate potential EB-5 projects by reviewing their private placement memorandum (PPM), economic job creation analysis, developer track record, and escrow structure. Analyze the project’s capital stack, construction timeline, and safety margin of indirect jobs created per investor.
While immigration attorneys verify statutory compliance, independent financial advisors can evaluate the commercial creditworthiness and repayment terms of the investment. Both legal and financial due diligence are critical before subscribing to an offering.
Once you execute project subscription documents and fund escrow, your immigration attorney will prepare and submit Form I-526E (Immigrant Petition by Regional Center Investor) to USCIS.
4. Leverage Concurrent Filing for Work and Travel Authorization (EAD and AP)
H-1B holders residing lawfully in the U.S. under a visa category with current priority dates can file Form I-485 (Adjustment of Status) simultaneously with Form I-526E. This mechanism, established by the RIA, is known as concurrent filing. Concurrent filing enables foreign nationals to apply for domestic adjustment of status before USCIS adjudicates their underlying I-526E investor petition. Eligibility is determined by the Department of State Visa Bulletin and USCIS filing charts.
Under concurrent filing, applicants can simultaneously apply for an open-market Employment Authorization Document (EAD via Form I-765) and Advance Parole travel authorization (AP via Form I-131). When approved, this allows you to work for any U.S. employer without employer visa sponsorship and travel internationally while adjustment of status is pending.
Submitting the forms establishes adjustment eligibility, but work and travel benefits become active only after USCIS approves the respective permits.
5. Maintain Nonimmigrant Compliance and Case Management
Coordinate employer changes, EAD usage, and international travel closely with your immigration attorney. Maintaining underlying H-1B dual-intent status while the EB-5 adjustment is pending provides a legal safety net if unforeseen adjustment issues arise.
Maintain complete archives of USCIS receipt notices, biometrics appointments, and approvals, and respond swiftly to any Requests for Evidence (RFEs) or Notices of Intent to Deny (NOIDs). A systematic filing strategy preserves both work authorization and career continuity throughout the Green Card transition.
Why H-1B Workers Should Evaluate EB-5 Options Today
The October 8, 2026 PERM suspension has disrupted permanent residency pathways across eight of the largest tech and IT employers in the United States.
For H-1B professionals, this action adds acute instability to an immigration system already constrained by corporate sponsorship dependency and strict six-year limits.
For H-1B professionals, the EB-5 program provides a proven, self-petitioned pathway to U.S. Green Cards that functions independently of corporate sponsorship and labor certifications. Reviewing EB-5 requirements and project due diligence now enables tech professionals to regain control over their careers and family stability in the United States.
We invite you to get started today by scheduling a free consultation with EB5AN.