The US government shutdown that began October 1st has created immediate complications for thousands of visa holders, international students, and employers navigating the immigration system. While Congress failed to pass funding legislation before the deadline, the impact varies significantly across different immigration services—with H-1B visa holders facing the most serious challenges.
Understanding which services continue operating and which have ground to a halt is essential for anyone dependent on the US immigration system right now.
What Actually Happens During a Government Shutdown
The federal government can only spend money when Congress passes appropriations legislation. When lawmakers fail to reach agreement by the fiscal year deadline, funding stops for many government departments and what officials classify as “non-essential” operations cease.
This isn’t unprecedented. Since the 1970s, the US has experienced multiple government shutdowns—some lasting just a few days, others extending beyond a month. The unpredictability creates planning nightmares for immigrants, international workers, and the companies that employ them.
The current shutdown stems from political deadlock between Republicans and Democrats over spending priorities and healthcare subsidies. How long this impasse continues remains uncertain, but the immigration consequences are already unfolding.
USCIS and Visa Processing: Operating Normally
Here’s the first piece of good news: US Citizenship and Immigration Services (USCIS), which handles core immigration adjudications including green cards, work authorization, and naturalization, continues operating because it’s funded primarily by application fees rather than congressional appropriations.
What this means practically:
- Visa application processing at consulates continues
- Customs and Border Protection (CBP) operates normally at airports and border crossings
- Biometric appointments proceed as scheduled
- Immigration status applications move forward
Visa operations are funded by application fees and should not be impacted by the government shutdown. For most visa categories, this fee-based funding structure provides insulation from shutdown effects.
However, international travelers should note recent significant fee increases. While the specific fees mentioned in some sources ($250 visa integrity fee and $24 I-94 fee) require verification, what’s certain is that non-immigrant visa applicants now face substantially higher costs beyond standard application fees.
The H-1B Crisis: Labor Department Shutdown Creates Bottleneck
The most severe impact falls on H-1B visa applicants and current holders seeking extensions. The processing of Labor Condition Applications (LCAs) would be impacted by a Department of Labor shutdown, and cases for which the LCA has not yet been submitted or received approval could not be submitted to USCIS for adjudication.
The Labor Condition Application serves as a prerequisite for H-1B petitions. The Department of Labor must approve the LCA before employers can file H-1B petitions with USCIS. With the DOL system shut down, this critical step cannot be completed.
The implications are immediate and serious:
- No new H-1B petitions can be filed without approved LCAs
- Extension applications requiring new LCAs are stuck in limbo
- H-1B holders whose status expires in the coming days or weeks face genuine crisis situations
- Employers cannot onboard new foreign workers even if they have approved petitions
The shutdown halts DOL filings and slows visa services, meaning employers and applicants should prepare for delays in hiring, travel, and immigration processes.
What about workers who already participated in the H-1B lottery? Those whose petitions were filed before the shutdown can breathe easier—their applications continue processing through USCIS since that agency remains operational.
The $100,000 H-1B Fee: Separate Policy Adding to Uncertainty
Compounding the shutdown complications, a recent presidential proclamation requires a $100,000 payment to accompany any new H-1B visa petitions submitted after September 21, 2025, including those for the 2026 lottery.
The proclamation appeared to bar any H-1B visa holder from entering the United States without having paid the new $100,000 fee. However, subsequent clarifications indicated that the $100,000 fee for the highly prized visa is intended to boost jobs for US workers, with implementation details still being worked out.
H-1B visas are already expensive, with costs ranging from about $1,700 to $4,500, depending on whether the visa is expedited, with fees typically considered a business expense for the employer. The dramatic fee increase represents a fundamental shift in H-1B economics.
This policy change, while separate from the shutdown, adds another layer of complexity and confusion for visa holders and employers trying to navigate an already disrupted system.
Green Card Applicants: Delayed But Not Derailed
PERM Labor Certification in support of permanent residency applications would also be impacted by the shutdown. The PERM process, which allows employers to sponsor foreign workers for green cards, requires Department of Labor approval before proceeding to USCIS.
The shutdown halts new PERM applications and those awaiting DOL review. However, the practical impact differs from the H-1B situation. PERM processing typically takes two years or longer under normal circumstances. A shutdown lasting days or even weeks, while frustrating, won’t dramatically alter timelines that were already measured in years.
For applicants whose PERM applications were already approved before the shutdown, the process continues at USCIS without interruption.
International Students: Minimal Direct Impact
Students studying in the US can largely continue their educational activities without immediate disruption. Since SEVIS (the Student and Exchange Visitor Information System) is funded by fees, student status updates should continue.
What remains unaffected:
- University operations and classes proceed normally
- Student visa status remains valid
- SEVIS records continue updating
- Most campus activities continue without interruption
The primary exception involves students whose research projects depend on federal government funding. Those specific research initiatives may face delays or temporary suspension until the shutdown ends, but this represents a small subset of the international student population.
Students planning international travel should exercise caution. There may be possible delays in visa issuance, and travelers should avoid unnecessary international travel, especially if they need to apply for a new visa to return to the US.
The Political Reality Behind the Shutdown
This shutdown reflects ongoing political tensions between Republicans and Democrats over federal spending levels and healthcare subsidies. Neither party has shown willingness to compromise on core demands, creating the funding impasse that triggers shutdown procedures.
Historical precedent offers limited guidance on duration. Past shutdowns have ranged from brief weekend closures to the 35-day shutdown from December 2018 to January 2019—the longest in US history. Political dynamics, public pressure, and economic consequences typically drive eventual resolution, but timing remains unpredictable.
For immigration stakeholders, this uncertainty compounds anxiety. H-1B holders approaching visa expiration dates cannot wait indefinitely for political resolution. Each additional day increases the risk of status complications and potential removal proceedings.
What to Watch and How to Prepare
As this shutdown continues, several factors will determine its impact on immigration:
Immediate concerns: H-1B holders with expiring status should consult immigration attorneys immediately about options. While the shutdown prevents new LCA filings, legal counsel can help navigate grace periods, alternative visa categories, or other protective measures.
Monitoring developments: Both the shutdown resolution and DOL systems restoration timelines remain critical. When funding passes, expect the Department of Labor to face significant backlogs from accumulated LCA applications.
Alternative planning: Employers dependent on H-1B workers should consider contingency planning, including potential delays in hiring timelines or alternative staffing strategies if the shutdown extends.
The uncertainty affects real people making critical life decisions about employment, education, and family planning. A government shutdown might sound abstract, but for visa holders watching expiration dates approach while the LCA system remains offline, the consequences are concrete and urgent.
As political negotiations continue in Washington, thousands of foreign workers and students can only wait, hoping for swift resolution before temporary disruption becomes permanent crisis.