US shutdown hits H-1B visa, green card processing; Indians to be affected

The ongoing US government shutdown is set to disrupt several services, with some agencies suspending work, employees being furloughed without pay, and others asked to work without salaries until funding is restored.

Among the worst affected in this scenario will be the one waiting for the processing of their H-1B visas and green cards, critical for thousands of Indian professionals.

Also Read: US Senators introduce bill to tighten H-1B and L-1 visa rules

H-1B visa services hit

Media reports quoting immigration lawyers said the shutdown would cut funding to the US Department of Labor, central to processing H-1B visas and green cards.

Before a company can sponsor an H-1B visa, it must file a Labour Condition Application (LCA) with the department. Approval of this application is crucial before the case can move forward to immigration authorities.

The Department of Labor also issues the PERM certification, which allows individuals to apply for an employment-based green card. With its funding halted, applicants who did not secure LCA approvals before October 1 will be impacted.

USCIS offers relief

This potential freeze in H-1B and green card processing is a major setback for Indians, who account for over 71 per cent of H-1B visa beneficiaries.

However, there is some relief for those whose certifications are already approved, as the US Citizenship and Immigration Services (USCIS) continues processing applications funded through visa fees despite the shutdown.

The disruption comes amid broader uncertainty, with the Trump administration pushing for sweeping changes to the H-1B system that could significantly affect Indian applicants.

Earlier, the government announced a steep US$ 100,000 fee hike for new H-1B visas and proposed an overhaul of the existing H-1B lottery system to prioritise higher-paid workers.

Also Read: Why US visa curbs may push US firms to shift more work to Indian GCCs

US Embassy clarifies

Meanwhile, the US Embassy in India has clarified that passport and visa services will continue “as circumstances permit” both within the United States and at embassies and consulates abroad.

In a post on X, the embassy said, "At this time, 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. We will not update this account until full operations resume, with the exception of urgent safety and security information."

The shutdown will also lead to the E-Verify programme going offline. The system, which helps businesses verify the eligibility of employees to work in the US, will now force employers to manually check I-9 documents, creating further delays.

According to an Economic Times report, past shutdowns have slowed processing times for visas and passports, with consular posts reducing hours or temporarily halting new applications unless urgent.

Also Read: After fee hike, US proposes new H-1B visa selection system

US govt shutdown

The current shutdown began at 12.01 am on October 1, after US President Donald Trump and Democratic leaders failed to reach a funding deal. No end date has been announced yet.

The last such standoff under Trump, between December 22, 2018 and January 25, 2019, lasted 35 days — the longest in over four decades.

This time too, layoffs are expected, with the administration planning large-scale dismissals of federal workers.

Trump defended the shutdown, saying, "A lot of good can come from shutdowns. We can get rid of a lot of things we didn’t want, and they’d be Democrat things."