Trump Administration Suspends Cognizant’s PERM Applications Amid Fraud Investigation

The Trump administration has suspended major IT firm Cognizant’s ability to file new applications in a key employment-based green card program. Federal officials are investigating alleged fraud involving immigration programs used to hire foreign workers, according to the U.S. Department of Labor’s Office of Inspector General.

Investigation Overview

Labor Department Inspector General Anthony D’Esposito announced on X that Cognizant’s PERM filings had been temporarily suspended. Authorities are investigating alleged fraud involving both the PERM and H-1B programs alongside the White House Fraud Task Force and other officials.

The inspector general also suspended H-1B processing for Cloudera, a U.S. enterprise software company. Newsweek reached out to Cognizant, Cloudera, and the U.S. Department of Labor for comment outside regular business hours via email.

Understanding the PERM Program

The PERM program, managed by the Labor Department, is typically the first step in the employment-based green card process. It allows U.S. employers to sponsor foreign workers for permanent residency. Employers must demonstrate that no qualified U.S. workers can fill the position and that hiring foreign workers will not negatively impact the wages or working conditions of similarly employed Americans.

No Charges Yet

As of now, no criminal charges have been announced against Cognizant, and officials have not publicly detailed specific allegations against the company.

The suspension prevents Cognizant from filing new PERM applications during the investigation but does not affect existing PERM approvals, employment-based green cards, or H-1B visas that have already been approved.

H-1B Visa Program

Data indicate that Cognizant secured approval for 3,510 H-1B visa petitions through June 30 of fiscal year 2026. The H-1B visa allows U.S. employers to hire foreign workers in specialty occupations requiring at least a bachelor’s degree or equivalent expertise. Many technology companies utilize this program to recruit engineers, software developers, and other skilled professionals.

Impact on Technology Companies

The investigation might impact technology companies relying heavily on employment-based visa programs. Cognizant is a significant user of the H-1B visa program. Any prolonged suspension of PERM filings could delay green card sponsorship efforts for affected employees needing new labor certification filings.

About Cognizant

Cognizant is an information technology and consulting company headquartered in Teaneck, New Jersey. Founded as a technology division of Dun & Bradstreet in 1994, the company has a large presence in India and reported around 351,600 employees worldwide at the end of 2025, with about 256,900 in India.

A previous Newsweek investigation found some job advertisement practices directed applicants to immigration or ‘global mobility’ departments, sparking criticism suggesting they targeted foreign workers already employed by the companies.

Trump Administration’s Approach

The Trump administration has taken steps to enforce H-1B rules aggressively. The Justice Department reached settlements with Compunnel Software Group, LanceSoft, and Elegant Enterprise-Wide Solutions over allegations tied to recruitment practices for temporary visa holders. Other disqualified employers include GowraTech LLC, Renotek Group LLC, Seeloz Inc., and Sherwood Academy.

Changes to the H-1B visa program include a weighted selection process favoring higher-paid workers, a proposed $103,265 fee for certain petitions, and expanding a $4,000 biometric and security fee for some H-1B extension applications. Previously, a separate $100,000 fee on certain employers was suggested but later struck down by a federal judge.

Officials are also considering ending the grace period for laid-off H-1B workers seeking new jobs, scrutinizing employers’ use of the program, and revoking work authorization for certain H-4 spouses of H-1B visa holders. They argue these measures aim to protect U.S. workers and strengthen the integrity of the immigration system.