Possible Government Shutdown: What Employers and Foreign Nationals Need to Know About Immigration Operations
With federal funding set to expire on September 30, 2025, the U.S. government faces the risk of a partial shutdown unless Congress passes a new budget or temporary funding measure. While negotiations on the Fiscal Year 2026 appropriations bill continue, employers should prepare for potential disruptions to immigration processes if a shutdown begins on October 1, 2025.
Based on prior shutdowns, here is how key immigration-related agencies and programs would likely be affected:
Department of Labor (DOL)
Immigration functions would be suspended as non-essential services.
No processing of PERM labor certification applications, LCAs, or prevailing wage requests.
The FLAG system would be offline, blocking electronic filings and preventing access to certified applications.
Mail submissions would also be unavailable.
U.S. Citizenship and Immigration Services (USCIS)
USCIS is primarily fee-funded, so most operations will continue.
Applications, petitions, and appointments at USCIS offices and Application Support Centers should not be disrupted.
Delays could occur if cases depend on input from agencies affected by the shutdown.
Importantly, because LCAs will not be processed by DOL, employers needing them for H-1B, H-1B1, or E-3 filings may be unable to proceed unless an LCA is already certified.
Department of State (DOS)
Visa processing and citizenship services at U.S. consulates and embassies are expected to continue as long as fee revenue is available.
Some domestic passport offices may close if located in shuttered federal buildings.
A prolonged shutdown could eventually limit visa services to emergency cases only if funding runs out.
Customs and Border Protection (CBP)
Inspection and border operations will continue.
CBP is expected to process immigration applications at ports of entry, including TN and L-1 blanket applications filed by Canadian nationals.
Immigration and Customs Enforcement (ICE)
Enforcement activities and SEVIS (Student and Exchange Visitor Information System) operations will continue without interruption.
E-Verify
Without new legislation, E-Verify authorization will lapse.
Employers will not be able to initiate new cases or resolve tentative non-confirmations.
During the lapse, employers are not required to meet normal E-Verify deadlines but must continue to comply with Form I-9 requirements and cannot take adverse action against employees based on E-Verify delays.
SAVE System
The SAVE database, used by agencies such as state motor vehicle departments to verify immigration status, is expected to remain operational.
EB-4 Non-Minister Religious Worker Program
The immigrant visa category for non-minister religious workers will expire on September 30 if not renewed by Congress. USCIS would be unable to approve petitions under this category until legislation is enacted to extend it.
Next Steps for Employers and Foreign Nationals
USCIS, consular, and border services are expected to remain largely functional, but program expirations and delays tied to DOL operations could impact certain filings.
Vong Law Group will continue to monitor developments and provide updates as the situation unfolds.
