How will the US government shutdown impact immigrants and visa holders?

What is a US government shutdown?

In the US, the government can only spend money if Congress passes a budget. When lawmakers don’t agree in time, agencies run out of funding and must stop “non-essential” work. This has happened several times since the 1970s, ranging from a few days to almost a month.

Speaking to The Indian Express, Houston-based immigration attorney Rahul Reddy explained how this plays out in immigration:“In the Department of Homeland Security, there are many different agencies involved in immigration. The main one is USCIS ( US Citizenship and Immigration Services). This is not affected at all. The reason it’s not affected is that it’s fee-based. We are paying the fees to run the agency. All the fees are collected, and there is no government expenditure on USCIS.”

Will this have any impact on immigration services?

The impact is uneven. Agencies funded by application fees continue to operate, while those dependent on annual budgets are shuttered.

USCIS and State Department consulates will remain open, for now.

Customs and Border Protection (CBP) will continue at airports and land crossings, since border security is deemed essential.

“The CBP is an essential organisation. So that will be funded,” Reddy said. On visas, he added, “They’re also essentially fee-driven. We pay a lot of fees to the consulates to apply for visas. In fact, there is a new fee that came out today, October 1. Every person will have to pay $250 extra to get a visa starting from today.”

All non-immigrant visa applicants, including students, must pay a 250-dollar (around 21,000 rupees) Visa Integrity Fee, plus additional charges like a 24-dollar (around 2,000 rupees) I-94 fee, on top of the standard visa processing fee.

What impact will it have on H-1B petitions?

Here lies the most serious disruption. The Department of Labor, which certifies Labor Condition Applications (LCAs) required for H-1Bs, has shut down its systems. Without an approved LCA, no new H-1B petitions or extensions can be filed.

“All other applications except for H-1B can be filed right now. The USCIS can also conduct green card interviews. But for an H-1B, it is essential to obtain the LCA, which is not possible under the current circumstances,” Reddy said.

For those on expiring visas, the stakes are high: “If my H-1B is expiring on October 10, and if I were to file an H-1B application, I can’t file right now because even if I file a Labor Condition Application, there is no approval… People nearing the deadline may be affected.”

Green card labour certifications are also stalled, but Reddy noted the longer timelines soften the blow “The labour certification is also needed for one to file the I-140, the green card process. But that’s a very long process anyway. Getting the labour certification for a green card is already taking two years. So not many people will be affected in that segment. The bigger problem is with filing H-1B petitions and extensions.”

Should the ones whose names have been picked in the H-1B lottery but not finalised yet be worried?

No. “Because the deadline to file H-1B lottery cases was June 30, they won’t be affected. If the application is still pending, USCIS is functional. So only the fresh ones who want to apply are impacted. Right now, there are no fresh lottery applications. It’s only extensions, transfers, and amendments. An amendment to an H-1B is, for example, if I move from Florida to Texas, I have to file an amendment before I start working,” Reddy said.

What impact will it have on international students?

Most international students will see little change. Their immigration status is recorded in SEVIS, a fee-funded system that continues to operate. Universities remain open, classes run as usual, and student offices keep working.

“Not much. It may affect some departments, but mostly in terms of research programs or certain projects….Only those who are getting funding from some government department might see a temporary stoppage.” Reddy said.

How long can a shutdown last?

There is no set endpoint. Past shutdowns have lasted from a few days to more than a month. This shutdown stems from a political fight over spending levels and healthcare subsidies. Republicans and Democrats blamed each other, and no funding deal was passed before the deadline.

Reddy framed the crisis as part of a larger fiscal problem: “This funding is a problem. They’re just spending too much money. The GDP-to-loan ratio is the highest. India is nowhere compared to the US. We have taken so many loans. Each president comes in and spends trillions more than what they collect in taxes. It has to be stopped somewhere. Neither Republicans nor Democrats have any plan, at all, to stop it.”