Trump administration suspends Cognizant's US green card filings over alleged fraud

Cognizant's plan to expand its American workforce has been overshadowed by a fresh move from the Trump administration, with the US Department of Labour suspending the India-founded technology giant's filings for permanent labour certification amid allegations of fraud.

The suspension affects Cognizant's applications under the Permanent Labour Certification programme, or PERM, which forms a crucial part of the process for employers seeking employment-based green cards for foreign workers.

Anthony D'Esposito, Inspector General at the US Department of Labour, announced the action on X, saying, 'Cognizant's PERM filings are suspended.'

He accused the company of posing a threat to American workers and said the administration was pursuing allegations involving 'facts, fraud, and finances'.

'Threats to American workers will NOT be tolerated,' D'Esposito said, adding, 'Handcuffs await.'

The department has not publicly detailed the specific allegations against Cognizant.

It has also not disclosed how many applications are covered by the suspension, how long the measure will remain in effect or whether any criminal charges have been filed.

The action concerns the PERM process, under which the Labour Department determines whether qualified US workers are available for a particular position and whether employing a foreign worker would negatively affect the wages and working conditions of similarly employed American workers.

Importantly, the suspension relates to PERM and permanent employment-based green card processing.

It does not, by itself, mean that Cognizant's H-1B petitions have been suspended.

The H-1B programme is a separate temporary work visa route for foreign professionals employed in speciality occupations.

The development also comes just a day after Cognizant announced plans to strengthen its presence in the US workforce.

The company said it would hire 1,500 US college graduates and expand its Frontier Certified Engineer and Frontier Business Operator workforce to 15,000.

Cognizant CEO Ravi Kumar S had said the company was investing in American workers and creating new employment categories linked to the artificial intelligence economy.

'We are hiring American graduates, standing up new American job categories for the AI era, and putting Cognizant's capital and leadership behind a national coalition built to make sure this transition works for workers,' Kumar said.

He also argued that AI would ultimately generate more employment opportunities than it eliminates, with greater value, wages and accountability moving towards America's workforce.

Cognizant has additionally joined RAISE US, a bipartisan coalition aimed at helping American workers adapt to the changing AI-driven economy.

Its Synapse programme has already trained more than one million people, with the company targeting two million trained people by 2030.

The Labour Department's action was not limited to Cognizant. D'Esposito separately said PERM filings by US-based software company Cloudera had also been suspended, citing the same broader crackdown on alleged abuse.

'One more. @cloudera: PERM filings SUSPENDED,' he wrote on X.

Neither the material released by the Inspector General nor the announcement provided details of criminal charges against Cognizant or Cloudera.

The officials also did not disclose the precise allegations or the scale of the applications affected.

Founded in Chennai in 1994, Cognizant is now a US-based multinational headquartered in Teaneck, New Jersey.

The company is listed on Nasdaq under the ticker CTSH and maintains a significant workforce and operational presence in the US.

For Cognizant, the timing makes the development particularly notable: its announcement of plans to add 1,500 American graduates and expand its AI-focused workforce came just one day before the US government suspended its PERM filings.

The company had not been quoted in the material released by the Labour Department, leaving the specific allegations behind the suspension undisclosed.