What the US H-1B Crackdown Really Means for Indians

On 8 October 2026, US Vice President JD Vance stood before reporters and attacked the H-1B visa system. He said the program has become full of fraud over several years, probably decades. Indian workers are the largest group on this visa, so this is our story too.

What happened

The government suspended Microsoft, Adobe and six large outsourcing firms from the program used to sponsor green cards. This program is called PERM, and it is the first step to permanent residency. Vance said Microsoft laid off 6,000 American workers last year, yet received 6,300 H-1B visas and almost 3,000 green cards. These are his numbers, not court findings.

What does Vance call “fraud”?

PERM stands for Program Electronic Review Management, and it is the US Department of Labor’s process for approving an employer’s request to hire a foreign worker permanently.

The employer must first show that no qualified American worker is available for the job, and the Labor Department sets a prevailing wage, which is the minimum salary the job must pay.

These are the two things Vance says some companies have misused. PERM is the first step toward a green card, coming before the I-140 petition and the green card application itself, and it is different from the H-1B, which is only a temporary work visa.

When a company’s PERM filings are suspended, as with Cognizant and Cloudera, it cannot start new green card cases for its workers until the investigation ends.

Earlier, in September, the Labor Department suspended PERM filings for Cognizant and Cloudera. Existing H-1B holders and approved petitions are not affected. Nine universities also face investigation over J-1 visas.

Remember that none of this is proven in court yet.

The main visas, in simple words

• H-1B: a work visa for specialised jobs. Congress caps it at 65,000 a year, plus 20,000 for people with advanced degrees.
• L-1: for staff moved within the same company.
• F-1 with OPT: for students who work after studying.
• J-1: for exchange visitors, including researchers and trainees.
• O-1: for people with extraordinary ability.
• B-1/B-2: for visits and meetings, not for work.
• Green card: permanent residence. PERM is its first step for most workers.

From H-1B to green card, and then citizenship

An H-1B does not make anyone a citizen. It is a temporary visa for three years, and it can be extended to six. The route to permanent residence runs through the employer. First comes PERM, then a petition called I-140, then the green card application. After getting the green card, a person must live in the US for five years before applying for citizenship. The Indian wait is the real problem. One analysis estimated that nearly one million Indians were waiting in the first three employment-based green card categories at the end of 2025. Many will wait for decades.

Spouses and children come on H-4 visas, and their green card follows the main applicant’s. A spouse can work only if the H-1B partner has an approved I-140 or has an extension beyond six years. A child who turns 21 loses dependent status. The proposal to end the H-4 work permit has not become a formal rule, so existing permits stay valid. In August 2026, DHS placed a rescission proposal on its regulatory agenda.

Changing jobs is allowed. A new employer files a fresh H-1B petition, and the worker can usually begin once it is filed. After a job loss, there is a grace period of up to 60 days to find a new sponsor or leave. The $100,000 fee never applied to employer changes inside the US. Moving jobs does carry a cost: the green card process may restart with the new employer, and years can be lost. This matters more now, because a worker at a suspended company may be stuck.

Who is affected, and who is not

Nobody has been banned because they are Indian. Workers at the suspended companies who are waiting for a green card now face delays. Workers at all other firms are not directly affected yet. Vance has said he distinguishes between cheap replacement labour and truly exceptional talent.

The $100,000 fee on new H-1B petitions is not being collected. Courts have blocked it, and a California ruling on 30 September was the second such order. Vance has said he would support ending the H-1B entirely, and a Texas lawmaker has proposed higher fines and longer employer bans. Only Congress can pass such changes. Until then, expect more company-level actions.

The 100% tariff

This is the part many people have misunderstood. The new law gives Trump the authority to impose tariffs on countries trading with Russia, including India, but it does not itself impose a new duty. The decision on rate and coverage stays with him. The ceiling is 100% on top buyers of Russian oil and gas.

India has been here before. Under the 50% duty from September 2025 to February 2026, monthly exports to the US fell from $8.1 billion to $6.5 billion. Yet exports for the full financial year 2025-26 stayed broadly flat at $87.31 billion. In October 2025, gems and jewellery exports fell 25%, engineering goods about 17% and textiles about 8%. The US takes about 20% of India’s exports, so other markets can reduce the damage but not remove it. Last time, some products such as smartphones were spared. Small exporters with thin margins have the least cushion.

Why is the US doing this?

The stated reason is protecting American jobs before the November mid-term elections. The tariff is also a lever in the India-US trade deal talks. Both moves put pressure on India.

The US midterm elections are on 3 November 2026. All 435 House seats and 35 Senate seats are on the ballot, and the result decides which party controls Congress for the second half of Trump’s term. Congress passes laws and approves budgets, so the result will shape how far Trump can push policies like tariffs and visa rules. Trump’s net approval is about -22.5, with 37.5% approving and 59.9% disapproving. That is below any president at this point since Harry Truman. Democrats lead Republicans by about 9.6 points on the generic ballot and are clear favourites to win the House. The Senate is much closer, and some races are dead heats. These are polls and forecasts, not results, and polls can miss badly.

What Indians should do

• Check whether your employer is among the suspended firms.
• Keep your wages and job duties well documented.
• Do not trust rumours about bans. Wait for official rules.
• Exporters should find buyers in the UK, Oman, New Zealand and the EU.

The US is tightening its door, and India cannot decide when it opens. India can decide how much of its future depends on that door.

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