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.

Flavia Lloyd

Annual Asylum Fee – What you Need to Know

By Denice Flores • October 9, 2025
Under the new regulation, if a person filed or files Form I-589, Application for Asylum and for Withholding of Removal after October 1, 2024, and the application remains pending with USCIS for 365 days, the applicant must pay an Annual Asylum Fee (AAF) on the one-year anniversary of his or her filing date.

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By Shirin Navabi • August 14, 2025
It’s no secret that the U.S. immigration system has faced increased scrutiny and change in recent months. From evolving policies to headlines filled with uncertainty, it’s understandable that many individuals are left wondering: Is this still the right time to pursue a future in the United States? The answer is yes—and here’s why. Despite the shifting political landscape, the core structure of U.S. immigration law remains firmly in place. While the process may appear more complex or demanding than it once was, the legal pathways to live, work, and thrive in the United States are still open and accessible to those who take the proper steps. What often gets lost in the conversation is that the United States remains a country built on innovation, creativity, and resilience. It continues to attract global talent, entrepreneurs, artists, and professionals from all walks of life. Whether you are launching a business, advancing your career, or seeking a better life for your family, the United States offers unparalleled opportunities to those who are prepared and determined. Much of what makes the United States a global economic and technological leader today is the direct result of contributions made by immigrants. Nearly half of the current Fortune 500 companies were founded by immigrants or their children. Immigrant entrepreneurs have long been an essential part of America’s economic success story. Some of the largest and most recognizable American companies were founded by immigrants or the children of immigrants. This includes household names such as Apple and Costco. Moderna, the pharmaceutical company and vaccine producer, was founded by a Canadian-born stem cell biologist, Derrick J. Rossi, whose parents themselves emigrated from Malta. These success stories are not outliers; they are part of a broader pattern that reflects the drive, innovation, and resilience that immigrants bring to the country. The United States also offers one of the most dynamic and diverse economies in the world. It is a place where hard work, fresh ideas, and entrepreneurial vision are rewarded. For creative professionals, business leaders, and investors, the United States provides a unique platform to grow, connect, and gain global influence. Its competitive marketplace, access to capital, and culture of innovation create unmatched opportunities for those ready to seize them. While the immigration process requires careful planning, that process is far from impossible. Indeed, having strong legal guidance is one of the most effective advantages an applicant can possess. Immigration law is complex, and each case must be evaluated individually. A clear, strategic plan tailored to your background and goals can significantly improve your chances of success. What may feel like a hurdle at first glance is often navigable with solid preparation and documentation. At our immigration law firm, we have had the privilege of assisting individuals from all over the world as they navigate these complexities. Time and again, we have witnessed how determination, careful preparation, and experienced legal counsel can turn uncertainty into opportunity and help transform a vision for the future into reality. If you have been uncertain about whether to move forward, let this be your sign to take the next step. The United States is still a land of possibilities. If you are ready to take that step, now is the time to act. Let us build your path forward together.

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By Denice Flores • August 8, 2025
The U.S. Department of Homeland Security (DHS) has announced the termination of Temporary Protected Status (TPS) for nationals from Honduras, Nicaragua, Nepal, Haiti, and Cameroon. These longstanding protections are set to expire, putting many individuals at risk of deportation.
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