Important Updates
Important Updates
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
April 2, 2026 | CanadaCanada: New Recruitment Requirements for Low‑Wage Positions under Temporary Foreign Worker Program
April 1, 2026 | United StatesBloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers
April 1, 2026 | CanadaCanada: Permanent Residence and Citizenship Filing Fees Increased
April 1, 2026 | United KingdomCare Talk Business: What the Casey Commission Means for Social Care’s Workforce
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
April 2, 2026 | CanadaCanada: New Recruitment Requirements for Low‑Wage Positions under Temporary Foreign Worker Program
April 1, 2026 | United StatesBloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers
April 1, 2026 | CanadaCanada: Permanent Residence and Citizenship Filing Fees Increased
April 1, 2026 | United KingdomCare Talk Business: What the Casey Commission Means for Social Care’s Workforce
April 1, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
Subscribe
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 InsightsVietnamese ImmigrationView 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
  • Vietnamese Immigration
  • 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
  • Insights

United States: Preparing for a Potential Federal Government Shutdown on October 1

September 29, 2025

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

  • Negotiations continue on the federal budget for Fiscal Year 2026, which begins on October 1. If Congress is unable to pass an appropriations bill or a stopgap spending measure by September 30, some immigration functions will be suspended in a federal shutdown.
  • A shutdown would mean that Department of Labor immigration functions such as LCA, prevailing wage, and PERM processing would be suspended until Congress passes a stopgap spending measure or a FY 2026 budget.
  • Fee-based immigration processing – including immigration benefits at USCIS and visas and passports at the State Department – would generally 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 would expire if Congress fails to extend them.
  • Although a federal government shutdown may be averted, employers and foreign nationals should be prepared for the possibility.

The issue

With government funding set to expire at the end of the fiscal year on September 30, a partial government shutdown is possible if agreement on an appropriations bill or a temporary stopgap measure cannot be reached by that date. Though negotiations on the Fiscal Year 2026 budget continue, employers should work with their immigration counsel to address time-sensitive matters that could be affected if a shutdown is not averted.

A closer look

Should a shutdown occur on October 1, the following is the expected impact on immigration operations, based on prior shutdowns in previous years.

Department of Labor (DOL): DOL immigration functions would likely be suspended as non-essential functions. No PERM or temporary labor certification applications, labor condition applications (LCAs), or prevailing wage requests would be processed. The FLAG online application system, as well as other DOL 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. Employers with time-sensitive labor condition applications or PERM applications should make efforts to file them before October 1 to place them in queue in the event of a shutdown, though they would not be processed until DOL operations resumed. Employers should access the FLAG system before October 1 if they may need copies of certified applications or other information during a possible cessation of DOL operations.

U.S. Citizenship and Immigration Services (USCIS): As a fee-funded agency, USCIS would generally be expected to continue processing applications and petitions for immigration benefits.  The Department of Homeland Security’s shutdown operation plan, last updated on September 27, confirms that all but a small percentage of USCIS employees would remain working if federal funding lapses on October 1. 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. Because DOL LCA operations would be suspended, employers planning H-1B, E-3, or H-1B1 extensions or changes of employer – for which a DOL-certified LCA is required – may be unable to file if they do not already have an LCA in hand before October 1.

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 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 would remain in operation. CBP would likely 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) would continue.

E-Verify: Congressional authorization for E-Verify would expire if no legislation is passed. Employers would not be able to initiate E-Verify queries or resolve tentative non-confirmations, 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. During a shutdown, employers remain subject to Form I-9 obligations and deadlines as usual.

Conrad 30 Program: Congressional authorization for the Conrad 30 program would 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 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 would become unavailable if legislation fails to extend the category beyond September 30. If the program expires, the government would not be permitted to approve applications under the category until the program is revived.

What’s next

Over the next several days, Congress will be working to reach agreement on an appropriations bill or on a stopgap spending measure to avoid a partial government shutdown. Fragomen is following the budget debate closely 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.

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

Video

Welcome to the Great White North—Immigration Behind the Beautiful Game | #FragomenFC - Ep. 16

Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.

Learn more

Media mentions

Bloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers

Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.

Learn more

Media mentions

Care Talk Business: What the Casey Commission Means for Social Care’s Workforce

Manager Asif Hanif, Senior Immigration Consultant Georgia Marshall and Immigration Consultant Inderjit Kaur examine how the Casey Commission could reshape workforce models, immigration policy and international recruitment in UK adult social care.

Learn more

Video

Staatsangehörigkeit Allgemein | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.

Learn more

Media mentions

The Caterer: How to Safeguard Your Sponsor Licences

Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.

Learn more

Media mentions

Times of India: US Proposes Sharp Hike in H-1B, PERM Wage Thresholds; May Adversely Impact Entry-Level Hiring

Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.

Learn more

Work authorization

Falling Demand, Rising Fees: Reassessing the UK’s 2026 Immigration Policy

UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.

Learn more

Video

FIFA Pass for the 2026 World Cup | #MobilityMinute

Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.

Learn more

Media mentions

RNZ Asia: Immigration Experts Divided Over Skilled Migrant Residency Reform

Business Immigration Supervisor Fiona Zhou says the restructured Skilled Migrant Category creates clearer pathways and retains skilled workers.

Learn more

Video

Navigating Outbound Services from Germany | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support. 

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

Learn more

Blog post

Critical Minerals, the Energy Transition and the Global Race for Skills

Senior Client Services Manager Caroline Kanzara-Obinwa explores how global talent shortages and workforce mobility are shaping the future of critical minerals and the energy transition.

Learn more

Video

Welcome to the Great White North—Immigration Behind the Beautiful Game | #FragomenFC - Ep. 16

Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.

Learn more

Media mentions

Bloomberg Law: DOL Wage Overhaul Adds to H-1B Sticker Shock for Employers

Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.

Learn more

Media mentions

Care Talk Business: What the Casey Commission Means for Social Care’s Workforce

Manager Asif Hanif, Senior Immigration Consultant Georgia Marshall and Immigration Consultant Inderjit Kaur examine how the Casey Commission could reshape workforce models, immigration policy and international recruitment in UK adult social care.

Learn more

Video

Staatsangehörigkeit Allgemein | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.

Learn more

Media mentions

The Caterer: How to Safeguard Your Sponsor Licences

Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.

Learn more

Media mentions

Times of India: US Proposes Sharp Hike in H-1B, PERM Wage Thresholds; May Adversely Impact Entry-Level Hiring

Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.

Learn more

Work authorization

Falling Demand, Rising Fees: Reassessing the UK’s 2026 Immigration Policy

UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.

Learn more

Video

FIFA Pass for the 2026 World Cup | #MobilityMinute

Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.

Learn more

Media mentions

RNZ Asia: Immigration Experts Divided Over Skilled Migrant Residency Reform

Business Immigration Supervisor Fiona Zhou says the restructured Skilled Migrant Category creates clearer pathways and retains skilled workers.

Learn more

Video

Navigating Outbound Services from Germany | #MobilityMinute

Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support. 

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

Learn more

Blog post

Critical Minerals, the Energy Transition and the Global Race for Skills

Senior Client Services Manager Caroline Kanzara-Obinwa explores how global talent shortages and workforce mobility are shaping the future of critical minerals and the energy transition.

Learn more

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
  • 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.