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The federal government entered a partial shutdown on January 31, 2026, after Congress failed to pass a final funding package. While this follows the record-breaking 43-day shutdown from last fall, this disruption is expected to be brief, with a House vote anticipated for the first week of February. However, as of February 2, several key departments are operating under shutdown contingencies. If you are an employer or a foreign national, here is what you need to know about how this affects your immigration matters: Impacts for Employers Certified LCAs: The Department of Labor (DOL) has suspended the processing of Labor Condition Applications. This means employers cannot currently obtain the certifications required to file new H-1B, H-1B1, or E-3 petitions. PERM and Prevailing Wages: Processing for PERM labor certifications and prevailing wage determinations has halted. This will likely cause a backlog once the government reopens. E-Verify: The E-Verify system is typically taken offline during a shutdown. Employers should continue to follow I-9 requirements but may be unable to resolve Tentative Nonconfirmations (TNCs) until the system is restored. Impacts for Employees and Families Consular Services: While U.S. embassies and consulates are fee-funded, their operations may be reduced. If you have an upcoming visa interview, check the specific consulate's website for status updates, as delays are possible. USCIS Operations: Because USCIS is primarily funded by application fees, it remains open. You should still attend scheduled interviews and biometrics appointments unless notified otherwise. CBP and Travel: U.S. Customs and Border Protection (CBP) functions are essential. Ports of entry remain open, though you may experience longer waiting times due to staffing adjustments. At Santos Lloyd, we are closely monitoring the situation as it unfolds. Whether you are an employer seeking guidance on how this shutdown impacts your hiring plans or an employee with general questions regarding if or how you may be affected, please reach out to our office. We remain dedicated to providing the updates and professional assistance necessary to help you navigate these disruptions.

U.S. Citizenship and Immigration Services (USCIS) has announced a major change to the H-1B cap selection process. Under a final rule issued on December 29, 2025, USCIS will replace the long-standing random H-1B lottery with a wage-weighted selection system that favors higher-paid and more complex positions. The rule is scheduled to take effect on February 27, 2026 , just ahead of the fiscal year 2027 H-1B cap registration season, unless delayed by legal challenges. If implemented, USCIS is expected to release additional guidance explaining how employers must submit registrations under the revised process. This change marks one of the most significant reforms to the H-1B program in recent years. Up until 2025, all registrations were treated equally once the annual cap was reached. Under the new system, selection odds will be tied to wage levels based on the U.S. Department of Labor’s Occupational Employment and Wage Statistics data. All H-1B registrations will still be placed into a single selection pool, but registrations tied to higher wage levels will receive multiple entries into that pool, increasing their likelihood of selection. Lower wage levels will receive fewer entries, making selection less likely but not impossible. H-1B wage levels are not determined solely by salary. Each wage level reflects the complexity of the job, the level of responsibility involved, and the education and experience required . Entry-level positions involving routine duties and close supervision are generally classified at the lowest wage level, while positions requiring independent judgment, advanced skills, and significant responsibility fall into higher wage levels. The highest wage level is reserved for roles that involve expert knowledge, strategic decision-making, and substantial leadership or technical authority. USCIS is expected to closely scrutinize selected petitions to ensure that the wage level claimed during registration is supported by the job duties and salary offered in the petition. Any discrepancies between the registration and the petition may result in requests for evidence, denials, or enforcement action. With the elimination of the purely random lottery, employers should begin preparing early by carefully evaluating job descriptions, wage levels, and overall H-1B strategy. Accurate classification and thoughtful planning will be essential under this new wage-based selection system. If you are an employer considering H-1B sponsorship, or a foreign professional wondering whether your position may qualify under the new wage-based system, consulting with experienced immigration counsel is more important than ever. Santos Lloyd Law is actively advising clients on H-1B cap registrations and strategy under the new rules. To discuss your options or determine whether you may qualify, contact our office to schedule a consultation.