Government Shutdown: Potential Immigration Impacts and What Employers Need to Know

As of October 1, 2025 at 12:00AM EST, the United States Government has shut down. Congressional Democrats have stated that they will withhold support for any spending bill that does not extend existing health insurance subsidies that are set to expire at the end of the year. In the past, government agencies have furloughed employees during a government shutdown, but the White House’s Office of Management and Budget has warned that federal agencies should prepare for mass firings if a shutdown occurs. Mass firings could potentially lead to disruptions in service of many agencies as they struggle with a reduced workforce. The last time the government shutdown was in December 2018 and it lasted for a period of 35 days.  It is unclear as of this time how long this shutdown will last.

Below is a brief overview of the potential immigration impact based on how government agencies operated during prior shut downs.

US. DEPARTMENT OF LABOR (DOL)

DOL will cease accepting or processing applications for Labor Condition Applications (LCAs) needed for H-1B petitions and E-3 applications, prevailing wage applications, and PERM labor certification applications.  DOL may issue guidance providing flexibility to employers who are unable to file PERM labor certification applications with expiring recruitment due to the shutdown.

U.S. CITIZENSHIP AND IMMIGRATION SERVICES (USCIS)

Because USCIS application and petition adjudications are primarily funded by user application fees, USCIS is expected to continue operations without great disruption, though processing times may slow. However, the filing of H-1B petitions and E-3 applications will be impacted, as a DOL-issued LCA is required for the filing (see above).  In the past, USCIS accepted late filings if failure to timely file an H-1B or E-3 extension was due to the government shutdown.

USCIS E-Verify service is appropriations-funded and will be suspended. If the government shuts down, employers will not be able to enroll in E-Verify or to access their E-Verify accounts to verify the employment eligibility of new hires and resolve tentative nonconfirmations (TNCs). E-Verify customer service, online webinars and training sessions, and the Self-Check program will also be unavailable during the shutdown. Employers must still comply with their Form I-9 obligations. In prior years employers were allowed to continue using the new alternate review process for remote I-9 document verification if E-Verify is temporarily unavailable due to a government shutdown. It is expected that this will continue to be the case, as the agency has not said otherwise.

U.S. CUSTOMS AND BORDER PROTECTION (CBP)

CBP personnel, responsible for inspection and law enforcement at U.S. ports of entry, are considered “essential personnel” and are expected to work without pay during a shutdown. U.S. borders and Preflight Inspections (PFI) areas will remain open. However, there may be staffing adjustments that could result in increased wait times to clear inspection and secure admission to the U.S. Additionally, adjudication of petitions by CBP officers at the border and PFI areas, such as TN applications and L-1 petitions for Canadian citizens, may be impacted.

U.S. DEPARTMENT OF STATE (DOS)

Visa and passport services are fee-funded and should continue as long as there are sufficient fees to support operations. However, passport offices housed in government buildings otherwise closed during a shutdown may become unavailable to the public. U.S. Embassies and Consulates remain open and will continue to process visa applications as long as funding remains in place. Visa application processing times may be delayed due to staffing adjustments or slowdowns at other federal agencies responsible for processing the security clearances required for visa issuance. A prolonged shutdown could ultimately exhaust DOS appropriations and result in the suspension of visa processing functions for all but emergency cases.

What Employers Need to Know

For talent acquisition professionals, it is important to note that all H-1B, H-1B1, and E-3 transfers where an LCA has not already been procured will need to be suspended until the government reopens and services from the DOL resume.  At this time, we suggest the following:

• For any individuals who have not yet been given offers, please consider that any offers you do ultimately decide to issue to a job applicant who requires an H-1B, H-1B1 or E3 visa may be subject to delay.  Should you be willing to accept an unknown delay in visa processing at this time, you may wish to consider making the offer contingent on starting by a certain date in case the delay ultimately becomes unacceptable to the business.  Please consult internally in your team and with the relevant business manager to determine whether you will proceed to offer.  A Gibney professional will remain available to discuss this with you and your team, as needed.
• For any individuals who have accepted an offer and who require an H-1B, H-1B1 or E3 visa, and where an LCA has not yet been procured, the start date will be delayed.  The delay should be communicated to the individual and immigration counsel will provide updates on such impacted cases.

The situation posed by the federal government shutdown remains fluid. As the shutdown persists, the impact on immigration related services may change. Gibney will be closely monitoring the situation and will provide updates. If you have any questions about this alert, please contact your Gibney representative or email info@gibney.com.

The general information provided herein is not intended to serve as a source of legal advice for any purpose. Please contact your designated Gibney representative or immigration counsel for specific legal advice.