U.S. Government Shutdown Looms: Key Immigration Services May Be Paused

Government Shutdowns and Immigration: What Employers Need to Know

As the U.S. approaches another funding deadline, the prospect of a government shutdown is once again front and center. After the record 43‑day shutdown in late 2025, Congress now faces renewed gridlock that threatens to disrupt critical federal operations — including those that support the U.S. immigration system.

A government shutdown occurs when Congress fails to pass either full‑year appropriations or a continuing resolution (CR) to extend funding. Although lawmakers approved short‑term measures to keep the government open through the end of 2025, those stopgaps have now expired, and uncertainty surrounds Congress’s ability to reach a new agreement.

As of January 28, 2026, reporting points to several key drivers behind the current shutdown risk:

• Ongoing difficulty in passing either a full‑year budget or another CR
• Persistent partisan gridlock over federal spending levels
• Funding directives and proposed cuts from the Trump administration and the Office of Management and Budget
• Senate dynamics, where the 60‑vote threshold requires bipartisan support, giving Senate Democrats leverage to seek policy concessions in exchange for advancing any funding bill

Why does this matter? Even a partial shutdown can ripple across agencies, delay visa processing and jeopardize the lawful status of foreign workers. Understanding these operational vulnerabilities—especially within the Department of Labor—is essential for employers, HR teams and immigration counsel to avoid costly disruptions. 

Past shutdowns reveal how immigration processes respond to government disruptions. This article draws on those lessons and guides stakeholders in preparing for potential delays in immigration processing if a shutdown occurs. 

 Join us as Judy Wong, Senior U.S. Immigration Attorney, and Julieta Grinffiel, Managing U.S. Immigration Attorney, break down the potential impacts and share practical guidance for navigating this uncertain landscape. 

The contents of this article are opinions provided for informative purposes only and are not meant as either legal advice or to establish an apparent or actual attorney-client relationship.  

Government Shutdown Effects on Immigration 

The most recent government shutdown occurred in late 2025 and lasted 43 days, marking the longest funding lapse since 2018–2019. As in past shutdowns, the impact on immigration services varied by agency. Fee‑funded agencies such as U.S. Citizenship and Immigration Services (USCIS) and the U.S. Department of State continued most core operations, though some customer‑service functions and non‑essential programs slowed due to reduced staffing.

The government continues to classify U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) as essential. Both agencies remained operational throughout the 2025 shutdown and are expected to maintain full functionality again if another shutdown occurs, though travelers may experience longer wait times or reduced hours at certain ports of entry.

During the 2025 shutdown, the Department of Labor (DOL) introduced temporary measures to manage disruptions to PERM processing and related workflows, including guidance on recruitment timelines and delayed filing windows. These steps helped mitigate some of the operational strain, but they did not fully prevent backlogs once funding was restored.

By contrast, the 2013 shutdown—during which the DOL suspended operations entirely—caused significant disruptions to employment‑based immigration. The key difference is that the 2025 shutdown, while lengthy, did not require a full DOL closure because the agency had limited funding flexibility and implemented temporary measures to manage PERM‑related delays. In 2013, however, the shutdown affected all 12 regular appropriations bills, leaving the DOL with almost no access to non‑annual appropriations and forcing a complete halt to discretionary funding.

If the DOL continues operating, it remains unclear whether the Employment and Training Administration (ETA), the branch most directly involved in immigration matters, will experience any impact.

Does a Government Shutdown Affect Immigration Agencies? 

A government shutdown can indirectly impact immigration—especially employment-based immigration—by disrupting the DOL’s operations. The DOL processes applications required for specific filings with USCIS and the Department of State, including:

• Prevailing Wage Determinations (ETA Form 9141); impacts include PERM green card and H-2B work visa filings 
• Labor Certifications (ETA Form 9089); impacts include PERM green card and H-2A/H-2B work visa filings 
• Labor Condition Applications (LCA – ETA Form 9035); impacts H-1B, H-1B1, and E-3 work visa filings 

FLAG System Vulnerability: Digital Bottlenecks During and After a Shutdown

The Foreign Labor Application Gateway (FLAG) is the online portal through which practitioners can file several DOL forms required for immigration processes. In the event of a shutdown, this online portal could be taken offline, causing significant delays for applications that are pending at the time of the shutdown and an inability to file the necessary paperwork for any new cases. The FLAG system could be doubly impacted following the restoration of government services, as practitioners eager to file cases can flood the system, causing further delay. 

LCA and PERM

If the DOL is unable to process LCAs, required for visas that allow foreign nationals to remain and continue to work in the U.S., individuals’ lawful statuses could lapse. Any new hires would also have to be delayed until services are back online. For certain companies, even the smallest gap in work authorization can cause significant business interruption, which could result in financial loss. As a result, it’s imperative that clients always track the work authorization of their foreign workers on a consistent basis and initiate extensions in a timely manner. 

In the context of permanent residency, the DOL processes labor certifications (PERM) required for certain immigrant visa petitions. Current processing timelines are already backlogged; according to the DOL itself, a non-audited PERM takes upwards of 16 months for adjudication.

Any further delay in adjudication will have an even more significant impact on foreign workers’ ability to remain in the U.S. and extend their work authorizations. Because certain visas can only be awarded for a maximum of five of six years (L visas and H-1B visas, respectively), a delay in Labor Certification adjudication can mean that the foreign worker must depart from the U.S. or can result in companies spending more money in filing fees to keep their foreign talent in the U.S. where they are needed for business to continue operations. Because of the intricacies of PERM, any delay from the DOL can cause a restart of an already lengthy process. 

Other Immigration Agency Impacts 

Other immigration agencies could be impacted during a government shutdown. Below is a list of those agencies and a brief synopsis of potential impact:  

U.S. Citizenship and Immigration Services (USCIS) 

Most petition- and application-based operations should continue, given that a majority of USCIS’s funding comes from filing fees. This is especially relevant in light of the increase in fees from 2024 to 2025. 

Similar to FLAG discussed above, the E-Verify system (an online portal through which employers can verify their workers’ work authorization) will likely be unavailable during a shutdown and employers will not be able to create E-Verify cases for I-9 purposes. To remain compliant, employers must continue to complete I-9s manually and must create cases once E-Verify becomes available.  

Once E-Verify becomes operational again, we expect there to be a grace period for employers to create E-Verify cases for new hires who started work during the time when it was unavailable. Further, due to increased demand, there will likely be delays in application processing.  

Customs and Border Protection (CBP) 

Although the government may withhold funding, CBP operates as an essential agency. Its employees must continue working without knowing when they will receive pay. Despite the funding lapse, the agency plans to maintain full operational capacity.

Department of State  

Like with USCIS, visa processing with the DOL should remain unimpacted because the Department of State is mostly funded by application fees. However, if funding deficits impact overall operations, this may cause delays in visa application processing.  If that does occur, the government may be able to provide mediation like it did back in 2013. During that government shutdown, USCIS announced that it would forgive certain late filings once the government resumed operations.  

Immigration and How to Prepare for a Government Shutdown 

To mitigate the impact of a government shutdown, employers may want to consider coordinating with their immigration counsel to prepare for scenarios that may impact their organization.  Employers can prepare for a shutdown by considering the following best practices: 

• Communicate with your organization’s stakeholders about expected processing delays for impacted case types. 
• Delayed LCA certifications will push out start dates for newly hired H-1B, H-1B1 and E-3 employees.
• Identify foreign national employees with upcoming expiration dates who may face gaps in status and work authorization. In general, our practice encourages clients to initiate extensions well in advance of any expiration date (between six and eight months in advance) to avoid unforeseen scenarios, such as a government shutdown. 
• Review budgets for your immigration programs and prepare for the possibility of incurring additional expenses to restart processes if filing windows are missed (primarily ETA 9089). 
• Contact Congressional representatives to convey the shutdown’s negative impact on your organization. 

It is possible that Congress will be able to come to an agreement in time or pass a stopgap spending measure or appropriations bill before midnight September 30, 2025, to avoid a shutdown. We will continue to monitor the situation closely and provide updates as available. 

About Us 

At Envoy Global, we combine smart, friendly legal teams with smart, friendly technology to facilitate immigration for companies and the global talent they depend on. Our holistic, proactive immigration services are built for accuracy and efficiency, always putting people first. 

Reach out today to learn how we can support your company’s immigration needs.

About the Authors

Judy Wong is a Senior Attorney at Corporate Immigration Partners, where she specializes in U.S. immigration law. She advises corporate clients on employment-based immigration and supports individuals with family-based petitions and naturalization. Judy earned her Bachelor’s degree from the University of California, Davis, and her Juris Doctor from Golden Gate University School of Law. Prior to her current role, she managed diverse immigration cases for both large and boutique firms, serving startups and Fortune 500 companies. She also serves as Chair of the Board of Directors for AILA’s Northern California Chapter (2025–2026).

Julieta Grinffiel earned both her Bachelor’s degree and Juris Doctor from Southern Methodist University. She is Board Certified in Immigration and Nationality Law by the Texas Board of Legal Specialization and has dedicated her career to immigration law. Julieta has represented startups and large organizations in employment-based matters, including labor certifications, nonimmigrant visas, and permanent residency applications. She also has extensive experience in family-based immigration, humanitarian cases, and deportation defense before EOIR. Julieta is currently a Managing Attorney at Corporate Immigration Partners.