Government shutdowns can significantly disrupt business immigration processes, creating challenges for employers, foreign nationals and immigration attorneys alike.
While many assume that a shutdown only affects government funding and operations, its impacts often expand far, far outward.
What needs to be considered when the government shuts down
The impacts of shutdowns that last more than a few days typically extend to compliance obligations and timelines in employment-based immigration. During a federal government shutdown, different agencies are affected in varying ways depending on their source of funding. For instance, the U.S. Citizenship and Immigration Services (USCIS) is primarily fee-funded and typically continues to operate, processing most petitions and applications without interruption.
However, certain programs that rely on congressional appropriations—such as the E-Verify system—are suspended. This suspension presents a compliance dilemma for employers who are legally required to verify employment eligibility through E-Verify, particularly those enrolled as part of federal contractor requirements. Employers must carefully follow Department of Homeland Security guidance on handling E-Verify outages to avoid future penalties.
Additionally, the Department of Labor (DOL), whose operations impact the processing of Labor Condition Applications (LCAs) and prevailing wage determinations, is funded through appropriations and may shut down during a lapse in government funding. This directly affects H-1B and PERM processes, as employers cannot submit or obtain approvals for required certifications. Delays here can disrupt business timelines, onboarding and extensions, increasing the risk of employees falling out of status if not properly managed.
Similarly, the Department of State may limit visa processing operations at U.S. consulates abroad during prolonged shutdowns. While consular services may continue on a limited basis, nonimmigrant visa appointments can be delayed or canceled, affecting foreign workers’ ability to travel or begin new assignments. Employers should anticipate these delays and communicate proactively with foreign national employees to manage expectations and timelines.
Maintaining compliance during a government shutdown requires proactive planning and documentation. It is important, for example, to maintain detailed records of any delays, missed deadlines or impacted processes to justify in the event of audits or future reviews. Where possible, employers should prepare filings well in advance of known fiscal deadlines and explore alternative immigration strategies if certain avenues become temporarily unavailable.