Impact of State Department Review on 55 Million Visa Holders: Business Implications

How the U.S. Government Shutdown Impacts Businesses and Immigration Services

Update The Impacts of the U.S. Government Shutdown on Immigration The landscape of immigration processing in the United States is facing significant changes due to the recent government shutdown that began on October 1, 2025. As federal agencies grapple with halted funding, the repercussions are affecting various sectors, from immigration services to border operations. This shutdown is especially crucial for businesses and organizations that rely on timely immigration processes for their workforce. USCIS Operations Continue Amidst the Shutdown The U.S. Citizenship and Immigration Services (USCIS) has remained operational due to its fee-funded structure, allowing it to process H-1B petitions and green card applications. However, a reduced workforce means that although petitions are being accepted, processing times will likely be extended. Cases that require collaboration with other agencies could face considerable delays, mirroring concerns highlighted in other sources about the shutdown's ripple effects on citizenship and immigration procedures. Critical Halt in E-Verify Services E-Verify, a vital online employment verification system, is currently unavailable due to its reliance on appropriation funding. This suspension not only affects new employees' verification but also creates compliance burdens for employers who must continue filing Form I-9 within legal timelines amidst ongoing delays. The consequences are stark: employers may face administrative challenges as they wait for E-Verify to resume operations, as noted by legal experts monitoring the situation closely. Challenges at the Department of Labor and Beyond The Department of Labor's (DOL) operations have largely come to a standstill, suspending the adjudication and acceptance of labor certification applications critical for H-1B and PERM processes. This has an immediate and profound impact on employers seeking to hire foreign talents, prolonging the timelines for applications that already had set expectations. Moreover, as referenced in recent publications, the complete shutdown of the DOL could mean significant backlogs once normal operations resume. Border and Consular Services Adjustments While Customs and Border Protection (CBP) officers and TSA staff are considered essential and continue their operations, travelers should be prepared for longer wait times and potential staffing shortages. Similarly, passport and visa services, while still available at the moment, might slow down as chronic delays in consular services could become prevalent if the shutdown continues. This reality underscores the financial risks for businesses dependent on international travel and immigration, emphasizing the need for strategic workforce planning during uncertain times. Industry Implications and Moving Forward For business lenders, banks, and credit card providers, understanding the nuances of these changes is paramount. The shutdown has already altered hiring plans for many companies, potentially leading to reduced productivity as critical immigration processes slow down. Employers in reliant sectors must consider adapting their hiring strategies and prepare for compliance challenges that could arise from this unpredictable situation. As the government remains in a state of shutdown, the best course for businesses is proactive communication with employees and careful monitoring of relevant processes to mitigate risks associated with delays. Engaging with legal counsel may help ensure compliance during these turbulent times while allowing organizations to navigate the complexities of U.S. immigration regulations.