Impact of US Government Shutdown on Immigration and Consular Operations

The US federal government has entered a shutdown due to the lapse in appropriations as of October 1, 2025. This development impacts many aspects of the immigration system. While some agencies are fee-funded and will continue operating, others rely on congressional appropriations and have suspended services until funding is restored. This LawFlash outlines how this affects US immigration and consular processes.

US CITIZENSHIP AND IMMIGRATION SERVICES

• Continues operating: The US Citizenship and Immigration Services (USCIS) is primarily fee-funded and will continue to accept and adjudicate most petitions and applications.
• Possible delays: Some processes depend on other agencies (such as security checks or labor certifications). These dependencies may result in slower adjudications, even though USCIS remains open.

E-VERIFY

• Unavailability during shutdown: E-Verify, the online system used by many employers to confirm employment eligibility, is not fee-funded and is suspended during a shutdown.
• Employer obligations: Employers must still complete Form I-9 for all new hires within required timelines. Employers enrolled in E-Verify will not be able to run new cases until the system is back online.
• Compliance guidance: In prior shutdowns, the US Department of Homeland Security (DHS) suspended deadlines for creating E-Verify cases and resolving Tentative Nonconfirmations (TNCs). We expect similar accommodations, but employers should carefully document hires and be prepared to run cases once the system is restored.

US DEPARTMENT OF LABOR IMMIGRATION FUNCTIONS

• Suspended activities: The Office of Foreign Labor Certification has suspended adjudication and acceptance of applications during the shutdown.
• Impact on H-1B and PERM: Labor Condition Applications (LCAs), PERM labor certification applications, and prevailing wage determinations are not being processed. This creates immediate delays for employers needing LCAs for H-1B, H-1B1, and E-3 petitions and will prolong timelines for PERM labor certification adjudication.
• Effect on filings: Cases that require the US Department of Labor (DOL) certification cannot proceed until operations resume.

US CONSULATES AND THE US DEPARTMENT OF STATE

• Visa operations: While many consular services are fee-funded, not all are. Consulates rely partly on appropriated funds for staffing, security, and certain administrative functions. As a result, while most visa appointments will proceed, delays and reductions in service capacity are possible, particularly if the shutdown is prolonged.
• Impact on applicants: Visa interviews may take place as scheduled, but some posts may reduce appointment availability, reschedule cases, or lengthen wait times. Administrative processing or interagency clearances could also slow down.
• Passport services: Both domestic and overseas passport issuance should continue because they are largely fee-funded. However, processing could still be delayed if consular staff are furloughed or facilities are impacted.
• Employers should anticipate case backlogs when DOL reopens.

US IMMIGRATION AND CUSTOMS ENFORCEMENT

• Continuing: Enforcement and removal operations, considered “essential,” continue as normal.
• Administrative delays: Certain support functions may be reduced, resulting in slower non-essential processing.

KEY TAKEAWAYS FOR EMPLOYERS AND INDIVIDUALS

• Continue filing with USCIS: Cases can still be filed and adjudicated, but be prepared for slower processing.
• E-Verify users: Employers must complete I-9s as usual, but E-Verify is unavailable. Document compliance carefully and await DHS guidance once the system is restored.
• PERM and LCAs: All DOL filings are suspended. This will delay H-1B, H-1B1, E-3, and PERM-based green card processes.
• Visa and travel: Consulates remain open but are not immune from disruption. Applicants should anticipate possible delays, rescheduling, or longer wait times.

RECOMMENDATIONS FOR EMPLOYERS

I-9 and E-Verify Compliance

• Continue to complete Form I-9s for all new hires within three business days, as required.
• Maintain detailed records of hires made during the shutdown and be prepared to enter E-Verify cases once the system is operational again.
• If your organization relies heavily on E-Verify (e.g., federal contractors with the FAR E-Verify clause), prepare for potential compliance flexibilities once DHS issues post-shutdown guidance.

Workforce Planning and Hiring Timelines

• Anticipate delays for new hires requiring H-1B, H-1B1, or E-3 petitions, as LCAs cannot currently be certified.
• Employers with employees in the green card process should expect delays in PERM adjudication. Plan accordingly for employees reaching nonimmigrant visa maximums for which PERM certification is critical.

International Travel and Visa Appointments

• Advise employees with upcoming consular appointments to monitor the specific consulate’s website for operational updates. While many visa services continue, some posts may reschedule appointments or experience extended wait times.

HOW WE CAN HELP

We are closely monitoring agency announcements and will provide updates as the situation evolves. Please contact our office with any questions regarding how the 2025 US government shutdown affects your specific case, workforce planning, or compliance obligations.

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