Federal Government Shutdown's Impact on US Immigration System

 

This morning, the U.S. government began shutting down for the first time in seven years after Congress failed to pass a funding bill. During a shutdown, federal agencies suspend all non-essential functions, while employees in “essential” roles—such as active-duty military and federal law enforcement officers—continue working.

The impact on immigration varies by agency, depending on funding sources and whether services are deemed essential. Below is a summary of how key immigration processes are affected:

Immigration and Customs Enforcement (ICE) / Customs and Border Protection (CBP)
 Both agencies are considered essential and will continue enforcement and inspection operations.

U.S. Citizenship and Immigration Services (USCIS)
 Because USCIS is primarily fee-funded, most operations will continue, including adjudication of petitions and applications, biometrics, interviews, and document production.

  • Exception: E-Verify – The program has been suspended. Employers must continue completing Form I-9 for new hires, but E-Verify cases cannot be created until the system is restored. Employers should track affected hires for later compliance.

U.S. Department of State (Consulates & Passport Services)
 Visa interviews, visa issuance, and passport services are expected to continue because these services are funded by application fees.

U.S. Department of Labor (DOL)
 All immigration-related functions have been suspended, as DOL is funded through congressional appropriations. This includes:

  • Labor Condition Applications (LCAs) for H-1B and E-3 petitions

  • Prevailing Wage Determinations (PWDs)

  • Applications for Permanent Labor Certification (PERM)

The DOL filing systems have been disabled. Once the government reopens, the backlog will likely cause additional delays in processing PWDs and PERMs.

Employer Impacts

  • New hires requiring H-1B or E-3 transfers: start dates may be delayed because LCAs cannot be certified during the shutdown.

  • H-1B extensions beyond the six-year maximum: planning will be critical for employees relying on PERM filings. Historically, USCIS has accepted late filings caused by government shutdowns.

The last federal government shutdown, in 2018–19, lasted 35 days—the longest in U.S. history—and also occurred during a Trump administration.

We are closely monitoring the situation and will provide updates as developments occur. In the meantime, please contact us with any questions about how the shutdown may affect your immigration matters.

 
Nadia Yakoob