IELTSVegaUS green card freeze on Infosys, TCS and Microsoft: is H-1B banned?
No, H-1B is not banned. The US froze green card filings at 8 firms on 8 Oct 2026. Who it affects, and the IELTS scores for Canada, the UK and Australia.
Short answer: no, the US has not banned H-1B visas for Indians. On 8 October 2026 the US Department of Labor suspended eight employers, Microsoft, Adobe, Infosys, TCS, Wipro, HCL, Cognizant and Capgemini, from PERM, the labor certification that is the first step of most employer-sponsored green cards. That freezes green card sponsorship at those eight companies. It does not cancel anyone's H-1B, and it does not stop other employers sponsoring green cards.
It still matters, because for many Indian engineers at these firms the green card was the long-term plan. This post sets out what was announced, who it touches, where the separate $100,000 H-1B fee stands, and, for anyone now weighing Canada, the UK or Australia instead, the exact IELTS scores each of those routes asks for.
What was announced on 8 October
Vice President JD Vance and Labor Secretary Keith Sonderling announced the suspension at a White House press conference. As reported, the Department of Labor will not accept new PERM applications from the eight employers and will not process applications they have already filed.
Officials gave two different reasons. For Microsoft and Adobe, Sonderling cited multiple active federal investigations. For the six IT services firms, the stated reason was volume: officials said the eight companies had obtained more than 100,000 permanent labor certifications since 2009.
One caution about everything that follows. As of 10 October, the Department of Labor had not published a written notice, a Federal Register entry or any guidance on the suspension. The details come from the press conference and from immigration lawyers reading it. They may be refined once something is in writing.
Who is affected, and who is not
The suspension is narrow. It targets one step, PERM, at eight named employers.
| Situation | Affected? | What we know |
|---|---|---|
| New PERM filed by one of the eight employers | Yes | Not being accepted |
| PERM already filed and pending at one of the eight | Yes | Reported to be on hold, not rejected |
| PERM already certified, or I-140 filed or approved | Unclear | Officials did not address it |
| Your current H-1B status and job | No | H-1B was not part of the announcement |
| PERM filed by any other employer | No | Normal rules still apply |
| Students on F-1 or OPT | No | Not part of this action |
Is H-1B banned? Where the $100,000 fee stands
No. H-1B is open, and there is no nationality-based restriction on it. The confusion comes from two separate actions landing within three weeks of each other.
On 18 September 2026 the President extended the $100,000 payment on certain new H-1B petitions for people outside the US until 21 September 2027. That fee is not being collected. A federal court in Massachusetts struck down the policy that implemented it on 8 June 2026, and on 24 July 2026 the First Circuit refused the government's request to pause that ruling during its appeal. USCIS says it will collect the fee if the court order is lifted, so watch the appeal.
The same day, the White House also ordered closer review of H-1B filings across agencies, including attention to employers who have laid off US workers. That changes how petitions are scrutinised. It does not stop them.
If you are on H-1B at one of these eight companies
Your status and your job are not touched by this announcement. What is at risk is the time it takes to get a green card, and that has a knock-on effect if you are close to the six-year H-1B limit, because extensions beyond six years depend on a PERM or I-140 having been filed at least a year earlier, or on an approved I-140.
- Find out exactly where your case is: not yet filed, PERM pending, PERM certified, or I-140 approved. The answer decides how exposed you are.
- If your I-140 is already approved, lawyers note that you generally keep its priority date if you change employer.
- A new employer can sponsor you from scratch with its own PERM. Its labor market test starts from the beginning, so this is a reset, not a transfer.
- Speak to an immigration attorney before you resign, travel or move. This post explains the announcement; it cannot assess your case.
Why people are looking at Canada, the UK and Australia
For some engineers this is the moment to keep a second option open. Unlike US employer sponsorship, the main Canadian, UK and Australian skilled routes all ask for an English test, and IELTS is accepted by all of them. The scores below are the ones that decide whether you qualify.
| Route | Job offer needed? | Which IELTS | Minimum score | Competitive score |
|---|---|---|---|---|
| Canada Express Entry (Federal Skilled Worker) | No | General Training only | CLB 7: 6.0 in each skill | CLB 9: L 8.0, R 7.0, W 7.0, S 7.0 |
| UK Skilled Worker visa | Yes, from a licensed sponsor | IELTS for UKVI, at a test centre | B2: 5.5 in each skill | No points for higher scores |
| Australia skilled PR (189, 190, 491) | No for 189 | Academic or General Training | 6.0 in each skill | 7.0 each = 10 points, 8.0 each = 20 points |
| Australia Skills in Demand (482) | Yes, employer-sponsored | Academic or General Training | 5.0 in each skill (tests from 13 Sep 2025) | No points for higher scores |
Canada Express Entry: the points route
Canada takes General Training only. Academic results are not accepted for Express Entry, and results must be under two years old both when you create your profile and when you apply for permanent residence. CELPIP-General and PTE Core are the alternatives in English.
The Federal Skilled Worker Program needs CLB 7, which is 6.0 in every skill, and 67 points on its own selection grid. That makes you eligible, not invited. Invitations go by CRS score, and CLB 9 is where the language points and the skill transferability bonuses for education and work experience really open up. For an experienced engineer, the step from CLB 7 to CLB 9 is often the largest single gain available.
UK Skilled Worker: the job-offer route
The UK route starts with a job offer from a Home Office licensed sponsor, paid at least £41,700 a year or the going rate for the role, whichever is higher. Since 8 January 2026, first-time applicants need English at B2. On IELTS for UKVI that is 5.5 in each of the four skills, not an overall average.
The test must be IELTS for UKVI taken at an approved centre. A standard IELTS result, or IELTS Online, does not count for a UK visa, however good the score. Some people are exempt, including holders of a degree taught in English that Ecctis confirms is equivalent to a UK bachelor's or higher.
Australia: points PR or an employer visa
Australia's points-tested skilled visas need Competent English, 6.0 in each skill, just to be eligible. Proficient English, 7.0 in each, adds 10 points and Superior English, 8.0 in each, adds 20, which is often the difference between an invitation and a long wait. Your level is set by your lowest skill, not your overall band.
Academic and General Training have the same thresholds for Australian visas. The test must be taken at a centre: at-home and online tests are not accepted for Australian visas.
What to do this week
- Do not panic-resign. Your H-1B is unaffected by this announcement, and a gap in employment creates problems of its own.
- Get your case stage in writing from your employer's immigration team, then take it to your own attorney.
- If you want a second option, pick one country, not three. Each needs different paperwork, and Canada's General Training requirement differs from the UK's UKVI requirement.
- Take a diagnostic before booking. Canada's CLB 9 asks for 8.0 in Listening, which surprises many strong speakers. Know your weakest skill before you pay for a test.
- Watch for a written DOL notice and for the First Circuit ruling on the $100,000 fee. Either could change the picture, and we will update this post when they do.
Practise for the score your route needs
Each of these routes turns on a specific number in a specific skill. On IELTSVega you can sit full General Training and Academic practice tests, drill Listening by question type, and get instant AI band scores on Writing and Speaking, so you know which skill stands between you and CLB 9, B2 or Proficient English before you book the real test.