The Department of Labor said Thursday it had uncovered evidence of fraud in the PERM certification process, prompting the freeze.
PERM, introduced in 2005, lets U.S. employers sponsor foreign workers for permanent residency after proving no qualified U.S. workers are available for a given role.
Only a handful of tech giants remain untouched, including Meta, Amazon and Alphabet’s Google, which can still file new petitions under the same framework.
Vice President J.D. Vance, who has long campaigned against foreign hiring, announced the move in a brief statement, claiming firms were replacing American staff with cheaper overseas talent.
The suspension could delay green‑card access for roughly 200,000 H‑1B workers tied to the affected firms, forcing many to extend temporary visas or leave the country.
Legal experts predict a swift court challenge from the companies, while labor groups warn the U.S. could lose its competitive edge in attracting global talent. The firms are expected to file lawsuits next week, and the DOL will review the allegations in the coming months.