• Insights

United States: FY 2025 Budget Impasse Could Lead to Federal Shutdown, Though Some Immigration Processing Would Continue

September 19, 2024

insight-news-default

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a glance

  • If appropriations legislation or a stopgap spending bill is not passed by Congress by September 30, 2024, the federal government will enter a partial shutdown on October 1.
  • A shutdown would mean that fee-based immigration processing – including USCIS benefit and State Department visa and citizenship document processing – will continue. However, the USCIS E-Verify, EB-4 non-minister religious worker program, and Conrad 30 program would expire if Congress fails to extend them.
  • Department of Labor immigration functions such as LCA, prevailing wage, and PERM processing would be suspended in a shutdown, until Congress passes a stopgap spending measure or a FY 2025 budget.
  • A shutdown is not inevitable, but employers and foreign nationals should be prepared for the possibility.

The issue

As FY 2025 federal budget discussions continue, U.S. government funding could expire after midnight on September 30, 2024 if Congress fails to pass legislation to avoid a government shutdown. In the event of a shutdown, some immigration processes would be suspended, while several others should be unaffected, though processing delays could occur if the shutdown is lengthy.

A shutdown is by no means certain. Congress is actively negotiating stopgap measures to provide short-term funding to keep the government open while the FY 2025 budget is debated. It has become a common Congressional practice in recent years to enact one or more successive stop-gap measures to keep the government open while full budget negotiations continue. The most recent government shutdown occurred in late December 2018 and lasted for 35 days.

A closer look

Should a shutdown occur, the following would be the expected impact on immigration operations based on prior shutdowns in previous years. Fragomen will provide updates on ongoing developments.

Department of Labor (DOL): DOL immigration functions would be likely to be suspended as non-essential functions. No PERM applications, labor condition applications (LCAs), prevailing wage requests (PWRs), or applications for temporary labor certification would be processed. Online application systems would be taken offline and would not accept PERM applications or audit responses, LCAs, or prevailing wage requests. The agency would also be unable to accept submissions by mail.

U.S. Citizenship and Immigration Services (USCIS): As a fee-funded agency, USCIS would continue to process applications and petitions for immigration benefits, but processing delays could occur if adjudication of a case is dependent on support from government functions that are suspended – for example, a security clearance from an agency that is affected by the shutdown. Appointments at USCIS local offices and Application Support Centers should not be affected by the shutdown. 

Department of State: The State Department’s visa processing and U.S. citizenship document functions would not be suspended as long as filing fees remain available to fund consular operations. However, some passport offices may be affected if they are located in federal buildings that are closed due to the shutdown.

Customs and Border Protection (CBP): Inspection functions at U.S. borders and ports of entry would remain in operation. CBP would continue to process immigration applications at the border.

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

E-Verify: Congressional authorization for E-Verify will expire if no legislation is passed.  Employers would not be able to initiate E-Verify queries or resolve tentative non-confirmations in the system, and would not be expected to meet the usual E-Verify deadlines until the program is reauthorized. 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. All employers remain subject to Form I-9 obligations and deadlines as usual.

Conrad 30 Program: Congressional authorization for the Conrad 30 program will also expire without legislation by September 30. 

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 would remain in operation.

EB-4 Non-minister religious worker program: The employment-based fourth preference immigrant visa category for non-minister religious workers will become unavailable if legislation fails to extend the category beyond September 30, 2024. If the program expires, the government will not be permitted to approve applications under the category until the program is revived.

What employers should do now

Though a federal agency shutdown could be averted, employers may want to discuss with their immigration counsel whether to submit time-sensitive DOL applications – such as prevailing wage requests and PERM applications for foreign nationals approaching their nonimmigrant maximum periods of stay – by September 30.

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

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Blog post

Malta Citizenship by Merit and Vision 2050: Who May Qualify and What Contributions Matter?

Director Isobel Neilson and Manager Sophie Jo Wasson examine how Malta’s Citizenship by Merit framework considers exceptional achievement and contribution alongside the country’s long-term priorities under Vision 2050, and what applicants should consider when developing a credible case.

Learn more

Media mentions

People Management: UK Right to Work Check Changes: What Businesses Need to Know

Partner Naomi Goldshtein discusses how new UK right to work requirements extend beyond direct employees and the steps businesses should take to understand and manage workforce compliance.

Learn more

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more

Blog post

Proposed Changes to Naturalisation by Residency in Ireland: What Does it Mean for Employers and Global Mobility Programmes?

Immigration Manager Jo Crawford examines proposed changes to Ireland’s naturalisation requirements and what they could mean for employers and global mobility programmes, including talent retention, workforce planning and business mobility. 

Learn more

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

Malta Citizenship by Merit and Vision 2050: Who May Qualify and What Contributions Matter?

Director Isobel Neilson and Manager Sophie Jo Wasson examine how Malta’s Citizenship by Merit framework considers exceptional achievement and contribution alongside the country’s long-term priorities under Vision 2050, and what applicants should consider when developing a credible case.

Learn more

Media mentions

People Management: UK Right to Work Check Changes: What Businesses Need to Know

Partner Naomi Goldshtein discusses how new UK right to work requirements extend beyond direct employees and the steps businesses should take to understand and manage workforce compliance.

Learn more

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more

Blog post

Proposed Changes to Naturalisation by Residency in Ireland: What Does it Mean for Employers and Global Mobility Programmes?

Immigration Manager Jo Crawford examines proposed changes to Ireland’s naturalisation requirements and what they could mean for employers and global mobility programmes, including talent retention, workforce planning and business mobility. 

Learn more

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
October 1, 2026 | JapanJapan: Stricter Permanent Residence Requirements
October 2, 2026 | United KingdomUnited Kingdom: Draft Code on Expanded Right to Work Scheme Clarifies Employer Obligations
October 2, 2026 | United KingdomUnited Kingdom: Expanded RTW Scheme in Effect; Further Employer Guidance Published
October 2, 2026 | United StatesUnited States: September 2026 DOL PERM and PWD Processing Times
October 2, 2026 | United StatesUnited States: U.S. Consular Services in Brazil Suspended
October 1, 2026 | JapanJapan: Stricter Permanent Residence Requirements
October 2, 2026 | United KingdomUnited Kingdom: Draft Code on Expanded Right to Work Scheme Clarifies Employer Obligations
October 2, 2026 | United KingdomUnited Kingdom: Expanded RTW Scheme in Effect; Further Employer Guidance Published
October 2, 2026 | United StatesUnited States: September 2026 DOL PERM and PWD Processing Times
October 2, 2026 | United StatesUnited States: U.S. Consular Services in Brazil Suspended
October 1, 2026 | JapanJapan: Stricter Permanent Residence Requirements
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.