US government shutdown: How does it affect Indian H-1B visa holders?

The US government shutdown has forced the entire nation to a halt as the lack of funding appropriations in Congress has stopped the operational resources to most of the federal sectors, except emergency services.

By Arghya Prodip Biswas

Oct 02, 2025 02:43 IST

On Wednesday, the Trump government marks the first shutdown for the first time in six years. The United States government shut down following President Donald Trump and Congress's inability to agree on funding before the October 1 deadline.

The deadlock has seen the furloughing of hundreds of thousands of federal workers and multiple government offices closing their doors. One of the impacted programs is the H-1B visa program, which will have processing suspended until the funding resumes, said immigration lawyer Nicole Gunara, according to a NDTV World report.

How the US government shutdown delays H-1B visa processing

H-1B visa processing happens through a combination of various steps and the collaboration of multiple Federal offices. Without the funding from the Federal government, halted operations at many key federal offices may push the H1-B visa processing to a total pause.

How the H1-B program works

The initial step of obtaining an H-1B visa involves submitting a Labor Condition Application (LCA) to the Department of Labor (DOL). After the approval, employers may later file an H-1B petition with the US Citizenship and Immigration Services (USCIS).

Whereas USCIS functions through filing fees and will keep on working, the DOL relies on congressional appropriations and will halt immigration-related activities during the shutdown.

In this scenario, getting a new H1-B visa has technically become impossible while changing of employers or status of status to H-1B, unless the applicants already had the LCA certified and downloaded it before the government shut down, Gunara explained in the NDTV World report.

If someone does not have a certified LCA will need to wait for the government to resume to resume their H-1B process. Mostly US tech companies that heavily rely on the H1-B program to recruit talented professionals from India and China. Which has recently come under increased scrutiny.

Recent developments in the H1-B application

According to Gunara's statement to NDTV World, "Last month, the Trump administration stated that it was doubling the annual application fee to $100,000 from $215 and suggested replacing the lottery system with a weighted selection process, where preference would be given to applicants in the highest of four wage levels."

In the meantime, the US Embassy in India released a statement on X, stating, "At this time, scheduled passport and visa services in the United States and at US Embassies and Consulates abroad will continue during the lapse in appropriations as the situation allows." Government shutdowns limit agencies from spending beyond essential services. Consequently, noncritical functions are held in abeyance until Congress passes a funding bill.

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