US Department of Labor Shutdown Delays H1B and Green Cards

The US government shutdown, which began on October 1, has halted critical immigration processing steps, particularly affecting Indian professionals relying on H1B visas and employment-based green cards.

With the Department of Labor suspending its operations, thousands of applicants now face an immediate freeze on new filings and approvals.

Since the Department of Labor's online FLAG portal is currently offline, employers are unable to file the necessary Labor Condition Applications (LCAs) or PERM labor certifications.

This administrative roadblock came as a shock to many who were preparing to begin new work or transition into new visas during the busy autumn hiring season.

Why Did the US Department of Labor Shut Down?

The shutdown resulted from Congress failing to pass a funding bill, causing several federal agencies to cease operations.

The Department of Labor is among those directly impacted, as its immigration-related services require appropriated funding to function.

This shutdown stopped essential services for new labor-related immigration applications.

As long as the political stalemate persists, any employer-employee combination that relies on a new or pending LCA or PERM is left stranded in the system.

Did you know?
The Department of Labor's FLAG system processes thousands of LCAs and PERM applications for US-bound professionals each month.

How Are Immigration Processes Being Disrupted?

US immigration lawyers report that no new H1B visa, transfer, or status change can proceed unless a Labor Condition Application was certified before the shutdown.

Prospective applicants and employers have found themselves unable to advance applications, switch jobs, or initiate status adjustments as required by regulations.

Green card hopefuls face similar blocks if their employment-based applications depend on Department of Labor approvals.

The PERM process, mandatory for employer-sponsored green cards, is also on hold, extending green card wait times and potentially invalidating time-sensitive applications.

What Does This Mean for Indian Professionals?

The timing is particularly troubling for Indian nationals, who make up more than 70 percent of H1B recipients. Since labor certifications are the precursor for most H1B and employment-based green card applications, the shutdown leaves thousands of skilled workers and their employers with no way to advance their cases.

Experts worry about long-term ripple effects, from missed job opportunities to stalled family reunifications and heightened legal uncertainty.

Some fear that the disruption will lead to increased anxiety for those on temporary visas with expiring windows for action or renewal.

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Do Any Immigration Services Still Operate?

While the Department of Labor is closed, the US Citizenship and Immigration Services (USCIS) continues to process pending applications, as it is funded by application fees.

Cases with previously certified LCAs or PERM approvals are progressing, albeit with likely delays.

Consular services in India, including visa stamping and passport issuance, remain operational for now, although officials warn that these may be subject to change if the shutdown deepens or further budget constraints arise.

The E-Verify system, vital to employment eligibility checks, is also impacted and requires employers to rely on manual verification steps.

How Might Policy Changes Worsen the Situation?

The shutdown coincides with broader immigration policy changes championed by the Trump administration, including a proposed $ 10,000 H-1B application fee and a shift to prioritize higher-wage workers.

Should these changes take effect, Indian and other foreign professionals may face increased barriers to entry even after services resume.

Ongoing legal challenges, shifting lottery rules, and Congressional gridlock combine with the shutdown to heighten unpredictability.

Immigration lawyers recommend constant vigilance and cautious planning for anyone navigating the US system until federal funding is restored.

As Congress seeks a deal to end the shutdown, applicants around the world await updates, hoping for a swift return to normalcy in U.S. immigration services.

The current crisis stands as a potent reminder that policy standoffs in Washington can change the professional fate of thousands overnight.