WASHINGTON D.C. – The United States federal government has officially entered a shutdown as of October 1, 2025, following a lapse in federal funding legislation. This funding gap has led to the suspension of non-essential government functions, impacting various immigration-related services and prompting federal agencies to prepare for potential workforce reductions.
Department of Labor Functions Halted
The Department of Labor (DOL), which relies on congressional appropriations and is not considered an essential service, has ceased crucial immigration-related operations. This includes the processing of Prevailing Wage Determinations, Labor Certifications for green card sponsorship and H-2A/H-2B work visas, and Labor Condition Applications (LCAs) necessary for H-1B, H-1B1, and E-3 work visas. Consequently, the DOL’s online systems, such as the Foreign Labor Application Gateway (FLAG), will be inaccessible, and personnel will not be available for inquiries.
Fee-Funded Agencies Maintain Operations Amidst Delays
U.S. Citizenship and Immigration Services (USCIS) and the Department of State, which are primarily funded by user fees, are expected to continue operating with minimal disruption. However, processing delays are anticipated, particularly for applications that require support from agencies affected by the shutdown. Furthermore, programs reliant on appropriated funds, such as the Conrad 30 J-1 physician program and the Special Immigrant Religious Worker Program, may face suspension.
E-Verify System Unavailable
A significant impact for employers is the offline status of the E-Verify system, used for employment eligibility verification. As E-Verify is federally funded, it will not be operational during the shutdown, preventing employers from initiating new cases or managing existing ones. While employers must still complete Form I-9, USCIS has historically allowed alternate remote I-9 document review processes and may suspend the typical three-day rule for creating E-Verify cases once the system resumes.
Essential Services Continue: ICE and CBP Operations
Essential government agencies such as U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) will continue their operations. CBP will maintain inspection functions at borders and ports of entry, though processing of certain applications filed at the border may experience delays. ICE enforcement activities are also expected to continue, with its detention facilities remaining operational.
White House Directs Agencies to Prepare for Layoffs
In a significant development, the White House has instructed federal agencies to prepare reduction-in-force plans, signaling potential mass layoffs, particularly targeting employees in programs not deemed essential or not aligned with the administration’s priorities. This represents a departure from previous shutdowns, where furloughs were more common than permanent job cuts.
Guidance for Employers and Foreign Nationals
Employers are strongly advised to review foreign national employee timelines, initiate extension requests early, and anticipate processing delays for all immigration-related matters. Consulting with immigration counsel is crucial for navigating the complexities of the shutdown and understanding available flexibilities and compliance requirements. The ongoing news surrounding the shutdown highlights the critical need for employers and foreign nationals to stay informed about agency updates.
The shutdown occurred as Congress failed to pass appropriations bills by the September 30, 2025 deadline, amid ongoing political negotiations and disagreements on spending and policy priorities. The duration of the shutdown remains uncertain, with potential ripple effects across the immigration system and the broader economy.
