United States: Federal Government Enters a Shutdown, Though Most Immigration Functions Remain in Operation
October 1, 2025
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 if a shutdown is lengthy. 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. 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): 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. Nevertheless, 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. Appointments at USCIS local offices and Application Support Centers should not be affected by a shutdown.
Department of State: 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: Until Congress reauthorizes the E-Verify program, employers will not be able to initiate E-Verify queries or resolve tentative non-confirmations, and will not be expected to meet the usual E-Verify deadlines. However, employers must not take any adverse action against an employee whose employment eligibility verification cannot be confirmed in E-Verify due to a shutdown. Despite the shutdown, employers remain subject to Form I-9 obligations and deadlines as usual.
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.