US govt shutdown Day 3: Trump to meet ex-budget chief on federal agency cuts, signals they may be ‘permanent’

In another post, he accused Democrats of undermining national security and public services: “The Democrats want to give your healthcare money to illegal aliens and open our borders to the criminals of the world, a deadly combination because everybody will come!”

Trump’s statements come as federal offices remain closed for a third straight day. The shutdown began on October 1, when Congress failed to agree on a budget. While critical services such as border security and air traffic control continue to soldier on, many government departments have halted operations, leaving hundreds of thousands of employees in limbo.

Immigration and visa fallout

For immigrants, visa holders, and international students, the impact of the shutdown has been uneven. Some agencies, such as US Citizenship and Immigration Services (USCIS), continue to operate because they are funded by application fees rather than annual congressional appropriations. That means green card interviews and most filings can still proceed.

But the Department of Labor, which certifies Labor Condition Applications (LCAs) required for H-1B visas, has gone dark. Without LCAs, no new H-1B petitions or extensions can be filed. “If my H-1B is expiring on October 10, I can’t file right now because even if I submit a Labor Condition Application, there is no approval,” explained Houston-based immigration attorney Rahul Reddy. Extensions, transfers, and amendments are similarly on hold.

Green card labour certifications are also stalled, but the longer processing timelines lessen the immediate impact. For international students, the disruption is minimal: the SEVIS tracking system that records their status is fee-funded, universities remain open, and classes continue as usual. Only federally funded research programs or projects could see temporary halts.

Meanwhile, the White House insists it is not targeting federal agencies for political reasons. Vice President J D Vance said the president was “open to negotiating” and dismissed concerns that Trump was singling out Democrat-aligned offices. But Trump’s social media posts suggest otherwise.

Impact on economy

Treasury Secretary Scott Bessent said the closure could hurt the economy if it drags on, potentially delivering a “hit” to the GDP. Democrats, led by Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, accused Trump of “making life harder and more expensive” and of shutting down the government to dismantle healthcare protections.

With no sign of compromise, the standoff is set to stretch further.

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