The US federal government has entered a shutdown due to the lapse in appropriations as of October 1, 2025. The shutdown is going to impact many aspects of the immigration system, as we set out below.
US Govt Shutdown October 2025
While some agencies are fee-funded and will continue operating, others rely on congressional appropriations and have suspended services until funding is restored. The result is a patchwork: some filings can proceed as usual, others are frozen, and interagency dependencies create additional knock-on delays.
Impact on USCIS Applications
US Citizenship and Immigration Services is primarily fee-funded. It continues to accept and adjudicate most petitions and applications, including extensions, adjustments, and changes of status. Applicants should anticipate slower timelines, as many cases rely on other agencies for security checks, labor certifications or interagency clearances. Discretionary or congressionally funded programs may also pause during the shutdown.
E-Verify
E-Verify is not fee-funded and is unavailable during the shutdown. Employers remain obligated to complete Form I-9 within the usual three business days of hire, but they cannot create new E-Verify cases or resolve Tentative Nonconfirmations. Historically, DHS has suspended related deadlines during shutdowns and granted compliance flexibilities, but employers should keep meticulous records of hires and be prepared to enter cases once the system is restored.
Department of Labor Functions
The Office of Foreign Labor Certification has suspended operations. This includes Labor Condition Applications, PERM labor certifications and prevailing wage determinations. The immediate consequence is that employers cannot file H-1B, H-1B1, or E-3 petitions requiring a certified LCA, nor can they progress PERM-based green card applications. These cases are on hold until appropriations are restored and the DOL resumes processing.
US Consulates and the State Department
Visa and passport services are largely fee-funded and continue in most locations. However, consulates also rely on appropriated funds for staffing, security, and support. While many visa interviews will take place as scheduled, reduced capacity is possible, especially if the shutdown persists. Applicants may face longer wait times, rescheduled interviews, or slower administrative processing, particularly for visas requiring interagency security checks. Passport services in the US and abroad continue but could be delayed if staffing levels are reduced.
Immigration Courts
The Executive Office for Immigration Review continues with detained dockets, as those are deemed essential. Non-detained hearings, however, are postponed. This adds further backlog to a system already under strain and delays case resolution for many applicants.
Immigration and Customs Enforcement
ICE enforcement and removal operations continue as essential services. However, administrative and support functions may be scaled back, which could result in slower processing of non-urgent matters.
Other Federal Functions
Shutdown effects extend beyond core visa adjudications. New Social Security number issuance is suspended, delaying work authorization steps for newly arrived visa holders. The State Department’s Waiver Review Division may also pause processing of J-1 two-year home residency waivers, slowing down status changes or visa transitions for affected exchange visitors.
NNU Perspective
For employers, the shutdown creates immediate operational risks. Recruiting foreign talent through H-1B or PERM processes is blocked, because DOL is offline. Federal contractors tied to the E-Verify system are left unable to complete checks, forcing them to rely on compliance flexibilities that DHS is expected to confirm once funding is restored.
Overseas hires face further uncertainty as consulates juggle reduced staffing, rescheduled interviews, and slowed interagency clearances.
For workers, the disruption is uneven. Applications filed with USCIS continue, but those that depend on DOL certifications are stuck. Non-detained immigration court cases are postponed, extending uncertainty for many applicants. New arrivals needing Social Security numbers face delays in being work-ready. Those with upcoming consular appointments abroad may see rescheduling or extended wait times.
If the shutdown is brief, the system can absorb the disruption. If it drags on, bottlenecks will build quickly at DOL, in immigration courts and at consulates. Employers will need to adjust onboarding and workforce planning and individuals should prepare for longer timelines across multiple stages of the immigration process.
Need Assistance?
Employers and HR teams should review their current immigration cases and hiring plans now. If your workforce relies on new H-1B, E-Verify or PERM filings, plan for delays and adjust onboarding timelines. Workers with upcoming visa appointments should monitor consulate updates closely and be ready for rescheduling.
If you need tailored advice on how the shutdown affects your business or workforce, contact us for guidance with mapping out contingencies and avoiding compliance risks.
Author
Founder & Principal Attorney Nita Nicole Upadhye is a recognized leader in the field of US business immigration law, (The Legal 500, Chambers & Partners, Who's Who Legal and AILA) and an experienced and trusted advisor to large multinational corporates through to SMEs. She provides strategic immigration advice and specialist application support to corporations and professionals, entrepreneurs, investors, artists, actors and athletes from across the globe to meet their US-bound talent mobility needs.
Nita is an active public speaker, thought leader, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.