The ongoing US government shutdown has begun affecting several services, including visa processing, leaving thousands of Indian professionals concerned. The shutdown, which started on October 1, 2025, has paused funding to several departments, including the US Department of Labor (DOL), a key agency for H-1B visas and employment-based green cards.
Before an H-1B visa can be processed, employers must file a Labour Condition Application (LCA) with the DOL. Approval of this application is crucial for moving the case forward. Similarly, the DOL issues PERM certification, which allows individuals to apply for employment-based green cards.
With funding paused, new H-1B and green card applications are directly affected. No new H-1Bs can be issued, nor can applicants transfer employers or change their status to H-1B unless the LCA was approved before October 1. H-1B processing will remain on hold until the Department of Labor resumes operations.
Indians make up the largest group of H-1B beneficiaries, accounting for over 71% of the allocation. The biggest immediate impact of this will be on new applicants, while those whose applications were already in process may continue unaffected.
Not all is lost for H-1B and green card hopefuls. The US Citizenship and Immigration Services (USCIS) can continue processing applications funded through visa fees, meaning applicants whose certifications are already approved may not face delays.
This shutdown comes amid ongoing debates over H-1B visa reforms. The US government recently announced a $100,000 fee hike for new H-1B applicants and plans to overhaul the lottery system to prioritize higher-wage workers. Such changes are expected to impact many Indian professionals who rely on these visas for work in the United States.
The shutdown began at 12:01 am on October 1, 2025, with no announced end date. The last major US shutdown during President Donald Trump’s term lasted 35 days, highlighting the potential for extended disruption. During this period, layoffs of federal workers are expected, adding to economic and administrative challenges.
Read more: Trump’s $100,000 H-1B Visa Fee: Impact on Infosys ADR and the ‘Gold Card’ Alternative.
The US government shutdown poses immediate challenges for new H-1B and green card applicants, especially from India. While some ongoing applications may continue processing, new applicants face delays until the Department of Labor resumes operations. For now, thousands of professionals remain in uncertainty, awaiting resolution of the shutdown.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Oct 3, 2025, 11:26 AM IST
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