As the 2025 U.S. government shutdown continues, many employers and foreign workers are understandably concerned about how immigration processes, particularly H-1B visas and PERM labor certifications, are impacted.

While some immigration functions remain operational, others are paused or delayed because the agencies that manage them rely on congressional appropriations. Understanding which processes are continuing and which are not is critical for maintaining compliance and planning next steps.

How the Shutdown Impacts Immigration Agencies

The shutdown impacts immigration agencies differently depending on their funding sources. Here is a quick overview. 

Agency	Status During Shutdown
U.S. Citizenship & Immigration Services (USCIS)	Mostly Operational. Continues accepting and adjudicating most petitions, including H-1B petitions properly filed before the shutdown and H-1B petitions filed after the shutdown if the employer secured a certified LCA prior to the shutdown.  E-Verify: Resumed October 9. E-Verify is back online with accommodations for cases delayed during the outage.
Department of Labor (DOL)	Suspended. The DOL cannot process LCAs, prevailing wage determinations (PWD), or PERM filings.
Customs and Border Protection (CBP)	Inspection and law enforcement personnel are considered “essential.” Ports of entry will be open, and processing of passengers will continue; however, processing of applications filed at the border may be impacted.
Department of State (DOS)	Operational. Visa and passport operations are fee-funded and thus are not normally impacted by a lapse in appropriations. Consular operations can nevertheless be impacted if there are insufficient fees to support operations at a particular post. In such a case, posts will generally only handle diplomatic visas and “life or death” emergencies.
Immigration and Customs Enforcement (ICE)	Operational. Generally, ICE Enforcement and Removal Operations (ERO) continue. The ICE Student and Exchange Visitor Program (SEVP) offices are unaffected since SEVP is funded by fees.

Because USCIS is primarily fee-funded, its core operations remain open. However, DOL functions, critical for H-1B and PERM filings, are halted until the government reopens, creating delays in immigration processes.

H-1B Visa Processing During the Shutdown

During the government shutdown, H-1B change of status, transfers, extensions, and amendments are all impacted due to the suspension of DOL operations. Employers must first obtain a certified Labor Condition Application (LCA) through the DOL’s FLAG system before filing an H-1B petition with USCIS. Currently, no new LCAs can be submitted or certified, effectively pausing H-1B filings if employers did not secure a certified LCA prior to the shutdown. However, USCIS continues to adjudicate pending H-1B petitions that were properly filed before the shutdown and H-1B petitions filed after the shutdown if the employer secured a certified LCA prior to the shutdown.

Possible Accommodations: 

Once DOL systems resume operations, USCIS has indicated that if an H-1B petitioner meets all other applicable requirements and submits evidence establishing that the primary reason they did not timely file an extension of stay or change of status request was due to the government shutdown, the agency will consider the government shutdown an extraordinary circumstance beyond the petitioner’s control when determining whether to excuse the failure to timely file the extension of stay or change of status request. 

Updated Guidance: E-Verify and I-9 Compliance

E-Verify Resumed Operations on October 9, 2025

E-Verify was temporarily unavailable from October 1–8, 2025 due to the shutdown. During that period, employers could not access the system to create or manage cases.

On October 9, 2025, DHS announced that E-Verify had resumed full operations. The agency has implemented flexible measures to help employers comply for cases impacted by the outage. Employers who participate in E-Verify must create an E-Verify case by Tuesday, October 14, 2025 for each employee hired while E-Verify was not available. Employers are instructed to use the hire date from the employee’s Form I-9 when creating the E-Verify case. 

Specifically, if an employer could not create an E-Verify case by the third business day after the employee began work for pay because E-Verify was unavailable, E-Verify will prompt you during case creation to provide a reason for the delay. Select “Other” from the “Select a Reason for Delay” drop-down menu and enter “E-Verify not Available” as the specific reason in the “Reason for Delay” text box. The days E-Verify was unavailable will not count toward the three business days employers usually have to create a case in E-Verify. 

For additional updates on how to handle Federal Contractor Deadlines and Tentative Nonconfirmations, see https://www.e-verify.gov/about-e-verify/whats-new/e-verify-resumes-operations. 

 

I-9 Obligations Remain Unchanged

Even during the E-Verify outage, employers were, and remain, required to complete Form I-9 within the normally required timeframe. The shutdown does not excuse I-9 compliance obligations.

PERM Labor Certification and Green Card Processing

The PERM labor certification process is among the most severely affected by the shutdown.

Prevailing Wage Determinations (PWD) and PERM Filings 

The FLAG portal, used for PWD and PERM submissions, remains offline. New applications cannot be filed, and adjudication of pending PWDs and PERM applications that were submitted before the shutdown is paused until DOL systems are restored.

Audits and Appeals

PERM audits and appeals before the Board of Alien Labor Certification Appeals (BALCA) are also suspended. Once funding resumes, the DOL may face a backlog, further delaying adjudication timelines.

Possible Accommodations: 

In prior government shutdowns, the DOL has allowed a filing window for PERM applications where recruitment or other time-sensitive steps expired during the shutdown period. Although it is not guaranteed, we anticipate that similar accommodations will be made. Reddy Neumann Brown PC continues to closely monitor any official announcements and will provide updates as they are announced. 

Impact on I-140 and Adjustment of Status

Because the I-140 immigrant petition (PERM-based) requires an approved PERM application, shutdown related delays in PERM directly impact when I-140 filings can proceed. However, if a PERM was certified prior to the shutdown, employers can continue filing PERM-based I-140 immigrant petitions. 

Further, if an I-140 was already approved, USCIS may continue processing adjustment-of-status (Form I-485) applications as long as visa numbers remain available.

Preparing for Post-Shutdown Recovery

As the 2025 government shutdown continues, employers and foreign nationals face significant challenges in maintaining immigration compliance, particularly with H-1B and PERM processes tied to the Department of Labor. While USCIS remains largely operational and E-Verify has resumed, DOL dependent functions, including LCAs, prevailing wage determinations, and PERM filings, remain suspended. These disruptions are expected to create delays and backlogs even after government operations resume. Employers should stay proactive by monitoring agency updates and preparing to act quickly once systems are restored.

Reddy Neumann Brown PC continues to closely monitor developments related to the government shutdown. Our firm will provide timely updates on H-1B, PERM, and other immigration processes as new guidance is released. 

By: Krystal Alanis

Krystal Alanis is a Partner at Reddy Neumann Brown PC and manages the firm’s PERM Labor Certification Department, where she oversees all EB-2 and EB-3 employment-based green card matters. Krystal guides clients from a variety of industries through the maze of the PERM Labor certification process and has handled thousands of PERM applications throughout her career with Reddy Neumann Brown PC. Krystal also guides employers and individuals through the I-140 and Adjustment of Status process, and assists clients with temporary work visa petitions (e.g., H-1B, TN, L-1, E-2). With over 13 years of immigration experience, Krystal is able to advise her clients with confidence and recognize any potential pitfalls that may arise.