The US government has shut down after President Donald Trump and Congress failed to reach a funding agreement by Wednesday's deadline. This failure means hundreds of thousands of federal employees face furloughs and many offices will close.
Reports say the shutdown immediately impacts the H-1B visa process, according to immigration attorney Nicole Gunara. According to Gunera, the processing of new H-1B visa filings is paused and won't resume until Congress allocates federal funding.
Why H-1B Processing Stops
A company first files a Labour Condition Application (LCA) with the Department of Labour (DOL). Once the LCA is certified, the company files an H-1B petition with US Citizenship and Immigration Services (USCIS).
Gunara explains that while the USCIS operations won't be affected (as it runs on filing fees), the DOL requires congressional funding to operate. Therefore, the DOL has stopped all immigration-related work, including certifying LCAs, until a funding bill is passed.
"What this means is that no one can get a new H-1B, transfer employers, or change status to H-1B unless they already got the LCA certified and downloaded before today," Gunara said. "Anyone who doesn't have a certified LCA will have to wait for the government to reopen to have their H-1B processes continued," as reported by NDTV.
Other Visa Services Continue for Now
The US Embassy in India posted on 'X' that scheduled passport and visa services in the United States and at US Embassies and Consulates overseas will continue during the lapse in appropriations "as the situation permits."
The U.S. Embassy India said, "Because of the lapse in appropriations, this X account will not be updated regularly until full operations resume, with the exception of urgent safety and security information."
"At this time, scheduled passport and visa services in the United States and at U.S. Embassies and Consulates overseas will continue during the lapse in appropriations as the situation permits. We will not update this account until full operations resume, with the exception of urgent safety and security information. For information on our services and operating status, visit https://travel.state.gov," it added.
The H-1B visa program, which is widely used by the US technology sector to hire skilled workers from countries like India and China, has been under intense scrutiny and is changing. Last month, President Trump imposed a massive jump in fees on applicants, raising the annual rate to $100,000 from the current $215.
The Trump administration also plans to abandon the existing lottery system. Instead, the Department of Homeland Security proposed a weighted selection process that would prioritise workers in the highest of four wage levels.
During a government shutdown, federal agencies cannot spend money beyond essential emergencies, so all "nonessential" functions are put on hold until Congress restores funding.
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