US Government Shutdown: Immigration and Visa Impact

The US government shutdown, effective October 1, 2025, is already raising urgent questions for employers and global talent. Many are searching for clarity on how this affects visa petitions, green card processes, and ongoing compliance requirements.

With parts of the Department of Labor offline, no new Labor Condition Applications (LCAs) or PERM filings can move forward. That means delays in H-1B start dates, halted green card applications, and risks for employees approaching their visa limits. For businesses, the result is stalled hiring plans, frustrated employees, and potential project setbacks.

At Deel, we’ve helped thousands of companies navigate complex immigration landscapes. Our experts know that while USCIS remains open, its processes are deeply tied to DOL approvals—creating hidden bottlenecks that many employers won’t anticipate until it’s too late.

Whether you’re a global enterprise needing to onboard talent fast, a growing startup worried about green card timelines, or an HR leader juggling compliance, this shutdown presents real risks. But you don’t have to face them alone. Deel Immigration is here to guide, prepare, and support you every step of the way.

Impact on current visa holders

For employees already in the US on visas like H-1B, H-1B1, and E-3, the most immediate issue is administrative delays. While they can continue working lawfully, changes such as extensions, amendments, or worksite transfers requiring updated Labor Condition Applications (LCAs) will stall.

For green card applicants, cases relying on Department of Labor (DOL) certifications are frozen until the government reopens. This is particularly stressful for employees nearing the H-1B six-year limit, as delays in the Permanent Labor Certification (PERM) process can disrupt their long-term immigration strategy.

See also: Trump Admin’s H-1B Visa Update 2025: Fees, Impact & Solutions

Impact on new visa petitions

Department of Labor (DOL) shutdown

The DOL plays a central role in employment-based immigration, overseeing:

• Labor Condition Applications (LCAs): mandatory for H-1B, H-1B1, and E-3 visas
• PERM Labor Certifications: the first step in many employment-based green card applications

During the shutdown, DOL systems are offline, meaning:

• No new LCAs can be certified
• No new PERM applications can be filed
• Cases already submitted remain in the queue but will not progress until operations resume

Labor Condition Applications (LCAs)

Without LCAs, employers cannot:

• File new H-1B petitions
• File amendments or extensions
• Transfer employees or adjust their work locations

For Deel clients: this means potential delays in start dates, assignments, or relocations. We recommend building flexibility into onboarding timelines.

PERM Labor Certifications

As the gateway to many green card applications, halted PERM filings create significant ripple effects:

• Delayed green card processing timelines
• Higher risk for employees nearing visa expiration
• Long-term backlog once DOL systems reopen

Employers with employees close to H-1B max-out should coordinate closely with Deel Immigration to assess timelines and backup strategies.

What’s still moving forward

Not every immigration process is impacted:

• The United States Citizenship and Immigration Services (USCIS) remains open. Since it is fee-funded, applications such as I-129, I-140, and I-485 will continue to be processed
• E-Verify is temporarily unavailable. Employers won’t be able to confirm work authorization through the system during the shutdown, but USCIS typically allows alternative I-9 verification methods
• Consular visa services may operate at reduced capacity depending on funding, but they are not fully shut down

Important note: USCIS petitions that rely on LCAs or PERM certifications cannot move forward until DOL reopens.

See also: USCIS Site Visits & Audits: What Employers Must Know

How Deel Immigration is responding

At Deel, we know that immigration delays can disrupt business continuity and employee well-being. Our team is taking proactive steps to minimize the impact:

• Monitoring government updates daily to assess policy changes
• Communicating with clients about risks to specific cases
• Prioritizing urgent filings to ensure clients can act quickly once systems reopen
• Exploring alternatives, such as temporary remote work arrangements, while waiting on approvals

See also: Best Work Visa Services for Global Teams: What To Look For

What employers and talent can do now

If your workforce is affected, here’s how to prepare:

• Plan for delays: Build flexibility into hiring timelines and onboarding
• Track employees near status limits: Coordinate with Deel to manage H-1B max-out risks
• Prepare documents in advance: Gather everything required so filings can be submitted immediately after the government reopens
• Consider alternative strategies: Explore options such as short-term remote work or different visa categories.