The U.S. government has shut down after the Trump administration and the Democrats were unable to reach an agreement regarding funding. The shutdown might continue indefinitely if the two sides are unable to reach an agreement. This is the first full federal shutdown since 2018-2019, and comes as a result of disagreements in Congress over spending priorities, foreign aid, and healthcare-related subsidies.
During a shutdown, federal agencies follow contingency plans that divide operations into “essential” and “non-essential” services. Essential services continue, while many others are suspended or delayed.
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This development is likely to have an impact on people in need of immigration and visa services. The U.S. Embassy in India posted on X, “At this time, scheduled passport and visa services in the United States and at U.S. Embassies and Consulates overseas will continue during the lapse in appropriations as the situation permits.” In previous shutdowns, the processing time for visas and passports have slackened. Embassies across countries have flagged that public communications, social media updates and notices will be suspended except for urgent safety or security alerts.
Immigration attorney Nicole Gunara stated that H-1B visa filings will not be processed until the Congress can agree on federal funding allocations. Gunara explained how the H-1B visa process goes through different steps, starting from filing a labor condition application known as an LCA with the Department of Labor (DOL). Once the LCA is certified, the concerned company moves ahead to file an H-1B petition with the U.S. Citizenship and Immigration Services (USCIS). She clarified that the USCIS operates on filing fees; hence, the shutdown will not affect its operations. However, the DOL requires funding from the Congress and will stop work related to immigration until a funding bill is passed.
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“What this means is that no one can get a new H-1B, transfer employers, or change status to H-1B unless they already got the LCA certified and downloaded before today,” she said, adding, “Anyone who doesn’t have a certified LCA will have to wait for the government to reopen to have their H-1B processes continued.” This comes at a time when there’s already a degree of uncertainty surrounding H-1B visas, with sweeping new changes being proposed, and a heavy fee being implemented for visa applicants.
The shutdown will also have a significant impact on federal workers. Hundreds of thousands of federal workers are affected, with those in non-essential roles being furloughed.
Economists estimate the shutdown could reduce the U.S. GDP growth by 0.1 to 0.2 percentage points per week. Small businesses relying on federal permits, contracts, or services may also experience disruptions.