Will The US Government Shutdown Delay H-1B Visas? What Indians Must Know

Last Updated:October 02, 2025, 15:44 IST

The shutdown, triggered by a budget standoff in Washington, could last days or weeks depending on how quickly Congress reaches a deal

The shutdown has coincided with new charges for non-immigrant visa applicants. (Image for representation: IMAGEN 4 ENGINE)

The United States has entered its first government shutdown in nearly six years after President Donald Trump and congressional leaders failed to agree on a budget. While the political standoff plays out in Washington, the consequences are being felt far beyond American borders, especially by Indians who rely heavily on US visas for work, study, and travel.

What Is US Government Shutdown?

In the US, government agencies can only function if Congress allocates funding. When a budget is not passed on time, federal offices are forced to suspend “non-essential” work. This leaves hundreds of thousands of employees either furloughed or working without pay. Essential operations, such as border security, continue but under strain.

Shutdowns are not new to the US. They have occurred repeatedly since the 1970s, ranging from a few days to several weeks. The last major one stretched to 35 days between December 2018 and January 2019, making it the longest in modern history.

What Happens To Visa And Passport Services?

For Indians, the first question is whether embassy and consular services remain open. The US Embassy in India has clarified that visa and passport operations will continue during the funding lapse, though only “as the situation permits.” In practice, that means basic services will remain accessible, but reduced staffing or resource limits could slow down processing times and restrict appointments for non-urgent cases.

Past shutdowns have shown that fee-funded services like consular work tend to operate but with patchy schedules, longer waits, and occasional suspensions of lower-priority categories.

H-1B Visas Most Affected?

The sharpest disruption comes with the H-1B programme, the primary work visa for skilled professionals from India. Every petition begins with a Labour Condition Application (LCA) that employers must file with the US Department of Labor (DOL). Only after this approval can petitions be taken forward to the US Citizenship and Immigration Services (USCIS).

Since the labour department is directly funded by Congress, its operations have halted during the shutdown, and only those whose LCAs were cleared before October 1 can move forward. Immigration attorney Nicole Gunara told NDTV: “What this means is that no one can get a new H-1B, transfer employers, or change status to H-1B unless they already got the LCA certified and downloaded before today.”

The same bottleneck extends to employment-based green cards, as the labour department also oversees the PERM certification that underpins those applications. With its systems paused, fresh applicants are left waiting, even as the USCIS, funded through application fees, continues to handle cases already past this stage.

Sophie Alcorn, a Silicon Valley-based immigration lawyer quoted by HT, underlined how uneven the fallout will be: “The shutdown creates a mixed bag of consequences, hitting new applications the hardest while largely sparing those already in process. For the Indian diaspora, who represent a huge portion of H-1B and employment-based green card applicants, the biggest immediate impact comes from the Department of Labor.”

Expiring Visas Raise Urgent Risks

More than 70 per cent of H-1B visas issued each year go to Indian nationals, making them the community most exposed to the freeze. Those whose LCAs were cleared before October 1 can still move ahead, but new applicants and people seeking transfers or amendments are blocked until the labour department reopens.

Houston-based immigration attorney Rahul Reddy told the Indian Express that the impact could be severe for those facing expiring visas: “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,” he said.

What About International Students?

Unlike H-1B workers, most international students face little disruption. Their immigration status is tracked through SEVIS, a system that is funded by student fees and therefore unaffected by the shutdown. Universities remain open and classes continue.

Reddy told the Indian Express that the main impact would be limited to those tied to research projects funded by the federal government: “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.”

How Long Could The Shutdown Last?

Shutdowns have no predetermined end date. They can end within days if a compromise is reached in Congress, or drag on for weeks if political deadlock continues. For now, the only certainty is uncertainty, with every day prolonging delays for those waiting on approvals from the Department of Labor.

Are Visa Costs Rising?

The shutdown has coincided with new charges for non-immigrant visa applicants. From October 1, all applicants, including students, must pay a Visa Integrity Fee of $250 and an additional $24 I-94 fee on top of standard processing charges. For Indian families already bearing high costs for US education or employment visas, this adds to the financial burden.

The Trump administration had earlier announced a dramatic hike in H-1B petition fees to $100,000, and plans to replace the lottery system with a wage-based selection process. Together, these changes significantly alter the economics of working in America for Indian professionals.

About the Author

Karishma Jain

Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar…Read More

Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar… Read More

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