Capitol Building Washington DC

This week, the U.S. federal government was shut down due to the failure of lawmakers to agree on a budget for the coming year. A government shutdown brings varying levels of disruption across agencies. While some immigration functions continue with minimal interruption, others come to a complete halt, particularly those reliant on congressional appropriations. These disruptions can create significant delays for employers and employees navigating U.S. immigration processes. Here’s how each agency is affected, and what businesses should keep in mind.

AgencyStatusAffect of shutdown
U.S. Department of Labor🔴Immigration services suspended
E-Verify🔴System unavailable
U.S. Citizenship and Immigration Services🟠Limited indirect impact
U.S. Customs and Border Protection 🟠Core services continue, but delays likely
U.S. Department of State🟠Visa services continue with caution

U.S. Department of Labor.

During a shutdown, the Department of Labor (DOL) ceases all immigration-related operations. No new labor condition applications (LCAs), prevailing wage requests, PERM applications, or temporary employment certifications can be submitted or processed. The DOL’s online system, including the Foreign Labor Application Gateway (FLAG), also goes offline. As a result, employers are unable to obtain the certified documentation required for many employment-based petitions—most notably, H-1B and PERM filings—until funding is restored.

E-Verify.

The E-Verify system, which allows employers to confirm the employment eligibility of new hires, is temporarily taken offline during a shutdown. Employers are unable to initiate new cases or resolve existing ones, and employees cannot address tentative nonconfirmations. Despite this, I-9 completion obligations remain in effect, and employers will need to submit E-Verify cases retroactively once the system is restored. The Department of Homeland Security typically issues compliance guidance following such outages to support employer obligations during the downtime.

U.S. Citizenship and Immigration Services.

USCIS remains open during a shutdown because it is primarily funded by application fees. However, its operations can still be indirectly affected. For example, applications that depend on certified LCAs—such as H-1B and E-3 petitions—cannot proceed without DOL certification, effectively placing those filings on hold. Programs that rely on congressional appropriations, including E-Verify, the Conrad 30 waiver program for J-1 doctors, and the special immigrant category for non-minister religious workers, may also be paused.

USCIS has historically provided some flexibility in these situations. For example, it may consider late extension filings on a case-by-case basis when employers are unable to meet filing deadlines due to shutdown-related delays.

U.S. Customs and Border Protection.

CBP remains operational throughout a shutdown, as its inspection and enforcement functions are classified as essential. Travelers should expect continued processing at airports and other ports of entry. However, reduced staffing or reprioritization of internal resources may cause slower adjudication of visa applications at the border—particularly for TN or L-1 status—and delays in Trusted Traveler Program services.

U.S. Department of State.

The Department of State generally continues to offer consular services during a shutdown, as many visa operations are funded by application fees. This means that visa interviews and adjudications usually remain available. That said, if the shutdown is prolonged, staffing and processing capacity may become constrained, especially at consulates with limited resources. Employers should prepare for the possibility of longer wait times or reduced appointment availability.

Mitigation strategies for employers and mobility managers.

Employers should prepare for the operational challenges a shutdown can present, particularly where government certifications are a prerequisite for immigration filings. If the FLAG system is down, employers may consider filing PERM applications by mail and should retain proof of delivery to establish timely submission.

When shutdown conditions prevent the timely filing of H-1B extensions due to unavailable LCAs, USCIS may excuse the delay under its extraordinary circumstances policy—provided the employer can document the situation. For E-Verify, I-9 verification should proceed as required, with E-Verify submissions deferred until the system comes back online. Employers onboarding remote hires may continue to use the alternate document inspection procedures permitted under current USCIS guidance.

Throughout any shutdown period, it’s important for mobility managers to maintain clear communication with impacted employees and internal stakeholders. Adjusting expectations, documenting delays, and proactively managing timelines will help minimize compliance risk.

Navigating disruption with confidence.

While a government shutdown adds complexity to the immigration process, its challenges can be effectively managed with timely planning and expert guidance. Newland Chase remains committed to helping organizations adapt their mobility strategies, ensure compliance, and maintain business continuity during periods of government disruption.

This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Chase for any case- or company-specific assessments.