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United States: Federal Government Enters a Shutdown, Though Most Immigration Functions Remain in Operation

Updated October 9, 2025 | October 1, 2025

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At a glance

  • Because Congress was unable to pass a Fiscal Year 2026 appropriations bill or a stopgap spending measure by September 30, the government has entered a shutdown.
  • Department of Labor immigration functions such as LCA, prevailing wage, and PERM processing are suspended until an appropriations bill or stopgap legislation is passed by Congress.
  • Fee-based immigration processing – including immigration benefits at USCIS and visas and passports at the State Department – should continue, though with potential delays. However, the USCIS E-Verify, EB-4 non-minister religious worker, and Conrad 30 programs have expired and will remain so unless and until Congress extends them through legislation.

The issue

The federal government has entered a partial government shutdown, as Congress was unable to pass a FY 2026 appropriations bill or a temporary stopgap measure to extend federal funding beyond September 30. Negotiations on the FY 2026 budget continue.

A closer look

The following is the known impact on immigration operations, based on prior shutdowns in previous years and on recent agency guidance and statements. If agencies issue further guidance in the coming days on impacted programs and operations, the below information will be updated.

Department of Labor (DOL): DOL immigration functions are suspended. No PERM or temporary labor certification applications, labor condition applications (LCAs), or prevailing wage requests will be processed during the shutdown. The FLAG online application system, as well as other DOL systems, are now offline and will not accept PERM applications or audit responses, LCAs, or prevailing wage requests.

U.S. Citizenship and Immigration Services (USCIS) (updated October 3, 2025): As a fee-funded agency, USCIS is continuing to process applications and petitions for immigration benefits. The Department of Homeland Security’s shutdown operation plan, last updated on September 29, confirms that all but a small percentage of USCIS employees would remain working in a shutdown. However, in an October 2 social media (X) post, USCIS Director Edlow said that due to the federal shutdown, processing times may be impacted by USCIS’s reprioritization of resources and that “[p]ublic facing interactions such as interviews, naturalization ceremonies, and contact center responses may also be delayed.” This would be a departure from prior shutdowns, where USCIS – as a fee-funded agency – was generally not impacted.

In any shutdown, USCIS processing delays could occur if adjudication of a case is dependent on support from government functions that are suspended – for example, a clearance from an agency that is affected by the shutdown.

Consistent with prior shutdowns and with the USCIS Policy Manual, USCIS has confirmed that for Form I-129 and I-129CW extension of stay or change of status requests where petitioners are unable to obtain required DOL documentation due to the government shutdown, USCIS will generally exercise favorable discretion in accepting these late filings when the government re-opens and petitioners are able to obtain the required documentation.

Department of State (updated October 2, 2025): The State Department has confirmed that during the shutdown, consular processing domestically and abroad will remain operational, which includes the issuance of visas and U.S. passports, though the agency notes that certain domestic support for consular operations will be suspended. Depending on the type of domestic support that is impacted, the suspension could have the effect of delaying adjudications in some cases.

In general, the State Department’s visa processing and U.S. citizenship document functions should operate as long as filing fees remain available to fund consular operations. However, some domestic passport offices could be affected if they are located in federal buildings that are closed due to the shutdown. If a shutdown is lengthy and fee funding is depleted, the agency could suspend visa processing or limit it to emergency cases only.

Customs and Border Protection (CBP): Inspection functions at U.S. borders and ports of entry should remain in operation. CBP should continue to process immigration applications at the border, such as applications for TN or initial blanket L status submitted by Canadian nationals.

Immigration and Customs Enforcement (ICE): ICE enforcement activities and operations of the Student and Exchange Visitor Information System (SEVIS) continue.

E-Verify (updated October 9, 2025): Congressional authorization for E-Verify expired on September 30 and the system became inaccessible on October 1. Without explanation, however, E-Verify operations have resumed and DHS has provided guidance to employers and employees on the resumption of services.

The legal basis for restarting E-Verify operations without Congressional authorization is not clear, and there may be further system outages during the government shutdown. However, while the system is operational, E-Verify users should make use of the system and any related government guidance in trying to comply with E-Verify requirements and deadlines.

According to government guidance, participating employers and employees who have been impacted by the week-long E-Verify suspension will be provided with additional time to comply with certain E-Verify requirements. E-Verify users should be aware, however, that since being placed back online, the system has been experiencing periods of instability and inaccessibility.

SAVE System: SAVE is the USCIS database used by government agencies – including state motor vehicle departments – to verify an applicant’s immigration status when processing applications for benefits. SAVE is expected to remain in operation during a shutdown.

EB-4 non-minister religious worker program: The employment-based fourth preference immigrant visa category for non-minister religious workers is now unavailable. The government is not permitted to approve applications under the category until the program is revived.

Conrad 30 Program: Congressional authorization for the Conrad 30 program – which allows foreign medical graduates to apply for waivers of the two-year J-1 foreign residency requirement – has expired. The expiration does not shut down the Conrad 30 program in its entirety, but will suspend the program with respect to international medical graduates who will enter training after July 1, 2026, unless and until Congress reauthorizes it.

What’s next

Over the coming days, Congress is expected to continue working to reach agreement on an appropriations bill or on a stopgap spending measure to reopen the government. Fragomen is closely following the negotiations and the impact of the shutdown and will issue further client alerts as developments occur. 

This alert is for informational purposes only. If you have any questions about the effect of a possible shutdown on your organization, please contact the immigration professional with whom you work at Fragomen.

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