Shutdown Showdown: The Looming Threat to Immigration Services Amidst Fiscal Disputes

Flavia Santos • September 28, 2023
      Every year, as the new federal fiscal year begins, the United States Congress faces the pivotal task of reaching a consensus on funding for the federal government. Should Congress fail to come to an agreement and pass the required appropriations bill, there is a potential for a partial government shutdown to take place.

The consequences of such a shutdown would only be uniform across some government agencies if it were to happen on October 1, 2023. The extent of the impact would fluctuate, particularly for agencies dealing with immigration-related matters, depending on several factors, including their ability to generate fees and other considerations.

Despite the uncertainty, it is anticipated that certain essential government functions would persist, ensuring that core services and responsibilities continue to be met, even in the event of a government funding impasse. Though a government shutdown is not definite, if it happens, we can anticipate delays in immigration benefits. Drawing from past shutdowns, it's likely that immigration services will be disrupted.

The U.S. Citizenship and Immigration Services (USCIS) 


The U.S. Citizenship and Immigration Services (USCIS) functions primarily on fees rather than government funding. USCIS offices typically remained open in previous shutdowns, but we should anticipate slower operations and processing bottlenecks.

This slowdown occurs because of reduced staffing levels, mainly when USCIS adjudicators depend on other government functions to make decisions. While USCIS is not heavily reliant on government funding, the interconnectedness of various agencies can indirectly affect its efficiency during government shutdowns, leading to potential delays in immigration-related services and decisions.


Speaking of the direct impact of Immigration on the federal government, the funding structure, and potential effects of government shutdowns on specific U.S. government agencies and their immigration-related functions are noteworthy.


Department of State (DOS)


The U.S. Department of State, which plays a pivotal role in managing visa applications and U.S. citizen services, relies on funding from visa application fees and related charges. This funding model has historically allowed the department to maintain essential services, including visa processing for citizens and immigrants.


However, in the event of an extended government shutdown, nonemergency services could be affected, possibly resulting in the suspension of various visa-related functions. This would manifest as the non-issuance of business and employment visas and potential cancellations or rescheduling of pending visa application appointments.


Department of Labor (DOL)


On the other hand, the U.S. Department of Labor (DOL) faces more substantial challenges during government shutdowns. Unlike fee-generating agencies, DOL relies heavily on government funding. Consequently, past government shutdowns have significantly impacted DOL's immigration-related functions.


This disruption has been particularly evident in labor condition applications (LCAs), PERM labor certification applications, and prevailing wage requests. During shutdowns, these functions were typically suspended, accumulating backlogs and extended processing times even after government operations resumed.


These distinct funding models and historical trends highlight agencies' varying vulnerabilities regarding immigration-related services during government shutdowns. It underscores the importance of budgetary considerations and contingency planning to ensure the continuity of essential immigration functions, particularly when fee-based funding models may provide some resilience but are not immune to disruptions caused by extended government shutdowns.


The incapacity to handle LCAs would directly influence employers' capacity to proceed with H-1B, H-1B1, and E-3 petitions. Additionally, if a government shutdown occurs, it is highly probable that E-Verify, the system employers use to confirm employment eligibility, will be non-operational.


Consequently, employers could commence, address, or fulfill necessary deadlines within the system once it is reinstated following the resumption of government operations. It's essential to underscore that employers will still be obligated to conduct I-9 verifications without any exemptions or exceptions, even without E-Verify functionality.


In summary, a U.S. government shutdown is poised to extend processing durations for various immigration-related affairs. The primary repercussions, particularly for U.S. employers hiring foreign workers, encompass:


  • The incapacity of employers to secure approved LCAs for H-1B, H-1B1, and E-3 petitions.


  • The Department of Labor's inability to handle PERM labor certification applications and determine prevailing wages.


  • The potential hindrance for individuals seeking to apply for business and employment visas to enter the United States.



As mentioned earlier, a shutdown isn't the most probable scenario, but considering the current situation with immigrants, it is likely an option that is executed. We'll be the first ones to inform you of any developments that come about in this situation.

This blog is not intended to be legal advice and nothing here should be construed as establishing an attorney client relationship. Please schedule a consultation with an immigration attorney before acting on any information read here.

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Flavia Lloyd

DHS Final Rule Eliminating “Duration of Status” (D/S): Practice Tips and Transition Procedures

By Juliana LaMendola • September 3, 2026
The Department of Homeland Security (DHS) published its final rule eliminating the longstanding "duration of status" (D/S) policy for F, J, and I visa holders, replacing it with a fixed period of admission effective September 15, 2026. This rule requires that those who need additional time to complete their programs must file Form I-539 with USCIS or travel abroad and seek to reenter to extend their authorized period of stay. F and J visa holders present in the U.S. and in valid status on September 15, 2026, will be allowed to remain in the United States until the Program End Date listed on their current Form I-20 (for F-1s) or Form DS-2019 (for J-1s), up to a maximum of four years (until September 15, 2030) plus a 60-day grace period for F-1s and a 30-day grace period for J-1s, without filing an Extension of Status request with USCIS. However, this safety net only applies while staying in the U.S.; international travel and subsequent reentry after September 15, 2026 will result in readmission under the new rule with an I-94 that expires on the Program End Date or Employment Authorization Document (EAD) expiration, but no later than four-years after their date of re-entry. Additionally, once re-admitted under the new rules, F-1s will only receive a 30-day grace period. Immediate Practice Tips: Any F-1 or J-1 nonimmigrant currently in the U.S. who plans to change programs, start a new degree level, or needs more time to complete their studies must work with their school or program sponsor to update their SEVIS record and receive an extended Form I-20 or DS-2019 before September 15, 2026. Eligible F-1 students should submit their post-completion OPT or STEM OPT work authorization applications (Form I-765) before September 15, 2026, to secure their status and drastically reduce the likelihood of needing a Form I-539 extension application. Any F-1 student who is eligible to apply for OPT or STEM OPT before March 18, 2027, should do so as soon as they are eligible to file their Form I-765. Since F-1s can file OPT applications up to 90 days in advance of graduation, F-1 students graduating before June 15,2027, should be able to file their OPT applications before March 18, 2027, and should do so to avoid also having to file Form I-539 to extend their stay. Thus, most F-1 students graduating in December 2026 and May/June 2027 should be able to take advantage of the transition rule’s delay in having to file Form I-539 applications and should only need to file Form I-765 to apply for OPT. Incoming F-1 and J-1 students who can enter the United States before the September 15, 2026 effective date (within the permissible 30-day window prior to their program start) should do so to benefit from the transition rules, including the full 60-day F-1 grace period and deferred extension requirements. Students (F-1 and J-1) who are planning international travel should return before the effective date if possible to preserve their transition benefits.  There are many parts of the rule that are not discussed here. If you are currently an F-1 or J-1 visa holder, you should proactively coordinate with your institutions and international office to protect your status and stay informed.

USCIS Issues Updated Guidance on Public Charge Rules

By Kris Quadros-Ragar • August 27, 2026
U.S. Citizenship and Immigration Services (USCIS) has released updated policy guidance detailing how officers will evaluate "public charge" inadmissibility for individuals applying for green cards through adjustment of status. This update follows a Department of Homeland Security (DHS) final rule that rescinds the 2022 public charge regulations. The new policy takes effect on September 18, 2026 , and applies to all green card applications (Form I-485) postmarked or submitted on or after that date. Who Is Subject to the Public Charge Rule? Most family-based and employment-based green card applicants will be subject to the public charge ground of inadmissibility. This includes spouses, children, and parents of U.S. citizens or legal permanent residents, as well as most employment visa preference categories, investors, and diversity visa applicants. Certain categories remain explicitly exempt under immigration law. These include: Asylees and refugees Victims of human trafficking (T visa) or crime (U visa) Violence Against Women Act (VAWA) self-petitioners Special Immigrant Juveniles Temporary Protected Status (TPS) applicants Certain military-related applicants and other designated humanitarian groups How USCIS Will Make Determinations USCIS officers will evaluate whether an applicant is likely to become a public charge by reviewing the totality of their circumstances on a case-by-case basis. Key factors include: Five Statutory Factors: Age, health, family status, assets/financial resources, and education or skills. Affidavit of Support: Submission of Form I-864 executed by a sponsor. Use of Public Benefits: USCIS will look at means-tested public benefits, such as cash assistance for income maintenance, housing assistance, food stamps (SNAP), or college financial aid. Note on timing: For benefits received before September 18, 2026, USCIS will only consider public cash assistance for income maintenance and long-term institutionalization at government expense. For benefits received on or after September 18, 2026, the broader consideration of all listed means-tested benefits will apply. Public Charge Bonds If an officer determines that an applicant is inadmissible solely on public charge grounds, USCIS may issue a Notice of Intent to Deny that invites the applicant to post a public charge bond using Form I-945. If an invited applicant successfully posts the required cash or surety bond, USCIS may approve the application for permanent residence. Public charge bonds can only be submitted if explicitly invited by USCIS. Santos Lloyd Law Firm will continue to monitor immigration developments closely and provide updates as further implementation details are released. For more information, please access: https://www.uscis.gov/newsroom/alerts/uscis-issues-guidance-on-making-public-charge-inadmissibility-determination

DHS Drafts Proposal to Remove the 60-Day Grace Period for Select Nonimmigrant Visa Holders

By Kris Quadros-Ragar • August 20, 2026
The Department of Homeland Security (DHS) is considering a regulatory proposal that would remove the discretionary 60-day grace period currently available to certain nonimmigrant visa holders (including H-1B, L-1, TN, E, and O-1) and their dependents. The draft rule is currently undergoing interagency review by the Office of Management and Budget (OMB) and has not yet been formally published for public feedback. What This Means Right Now Nothing changes today. The 60-day grace period remains in effect while this rule goes through the approval process. Under current rules, if your job ends early, you have up to 60 days (or until your I-94 expires) to leave the U.S., find a new sponsor, or apply to change status. What Could Change If approved, foreign workers who lose their jobs would no longer get automatic time to find a new employer or change status from within the U.S. They would generally be required to leave the country immediately. Next Steps Once the OMB finishes its initial review, the proposed rule will be published in the Federal Register, opening a public comment period of 30 to 60 days. Based on feedback received during this time, DHS may decide to alter, withdraw, or proceed with the proposal. If the government decides to finalize the rule, the entire process will likely take several months before taking effect. Santos Lloyd Law Firm will continue to monitor developments closely and will share updates on our immigration blog and social media pages as more details emerge.
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