As of October 1, 2025, the U.S. federal government has officially entered a shutdown after Congress failed to pass a funding resolution. While shutdowns are not new, the current one comes with widespread consequences for federal agencies, employers, and foreign nationals linked to the U.S. immigration system.
For businesses relying on foreign talent, this shutdown is more than a political standoff; it directly impacts hiring timelines, visa processing, and compliance obligations. The Department of Labor, the Foreign Labor Application Gateway system, and U.S. Citizenship and Immigration Services all play critical roles in employment-based immigration, and each is affected in different ways.
What Departments Are Affected by the Shutdown?
The shutdown affects multiple federal departments and agencies, but the impact varies depending on how they are funded. Some agencies rely heavily on congressional appropriations and are forced to suspend or scale back operations, while others funded primarily through fees can continue limited services.
Department of Labor (DOL): Most immigration-related functions such as Labor Condition Applications (LCAs) and Program Electronic Review Management (PERMs) are suspended.
Foreign Labor Application Gateway (FLAG): The online system for labor applications is offline.
U.S. Citizenship and Immigration Services (USCIS): Largely continues operations since it is fee-funded, but programs tied to appropriations (e.g., E-Verify) are suspended.
Other Agencies: National parks, health agencies, federal courts, and regulatory bodies are also impacted to varying degrees. Essential services like air traffic control and law enforcement continue but often without pay for staff.
This article focuses on the DOL, FLAG, and USCIS because of their direct connection to employment-based immigration, but it is important to understand the broader landscape of government operations being disrupted.
Known Impact on Immigration Operations — Infographic (Line Icons)
Known Impact on Immigration Operations
Here is a summary of how the 2025 government shutdown is affecting immigration operations. This section is based on prior shutdown patterns and current guidance. Updates will be made if agencies release new information.
Operational statuses may change as agencies update their shutdown plans. Confirm time-sensitive filings with counsel.
Department of Labor (DOL)
All DOL immigration functions are on hold. No PERM or temporary labor certifications, LCAs, or prevailing wage requests will be processed. The FLAG system and related DOL portals are offline and cannot accept new applications, audit responses, or wage requests.
U.S. Citizenship and Immigration Services (USCIS)
As a primarily fee-funded agency, USCIS continues to process immigration petitions and applications. DHS’s latest shutdown plan indicates that nearly all USCIS staff remain at work. However, delays are possible for cases requiring input from agencies that are closed. Local USCIS offices and Application Support Centers should keep appointments as scheduled.
Department of State
Visa processing and U.S. citizenship documentation services remain operational while filing fees sustain them. Some passport offices in shuttered federal buildings may face closures. A prolonged shutdown could restrict visa processing to emergency cases if fee funding runs out.
Customs and Border Protection (CBP)
Border inspections continue. CBP is still processing immigration applications at entry points, including TN and initial blanket L petitions for Canadian nationals.
Immigration and Customs Enforcement (ICE)
Enforcement actions and SEVIS (Student and Exchange Visitor Information System) remain active.
E-Verify
Employers cannot initiate new queries or resolve tentative non-confirmations. Normal deadlines are waived until reauthorization, but employers must not take adverse action against workers whose status cannot be confirmed. Form I-9 obligations still apply.
SAVE System
This USCIS database, used by agencies like DMVs to verify immigration status, remains operational during the shutdown.
EB-4 Religious Worker Program
The EB-4 non-minister immigrant visa category is currently unavailable. Applications cannot be approved until Congress renews the program.
Conrad 30 Program
Congressional authorization has lapsed. While the program is not fully ended, it is suspended for medical graduates beginning training after July 1, 2026, unless reauthorized by Congress.
For time-critical filings (PERM, LCAs, prevailing wage, consular appointments), plan contingencies and document good-faith efforts during the shutdown period.
Government Shutdown 2025: Department of Labor (DOL) Impact
The Department of Labor is not primarily funded through user fees, which means many of its functions are suspended during a government shutdown.
The Office of Foreign Labor Certification (OFLC), which handles applications such as the LCA for H-1B visa petitions and PERM labor certifications for green cards, has ceased processing.
Staff have been furloughed, leaving no one available to review applications or respond to employer inquiries.
This creates an immediate bottleneck for employers, as LCAs must be certified by the DOL before petitions can be filed with USCIS.
In other words, even if USCIS remains operational, the pipeline from the DOL side has been effectively shut off.
Government Shutdown 2025: FLAG System Impact
The Foreign Labor Application Gateway (FLAG), which is the DOL’s online platform for submitting and tracking labor certification applications, has also been directly impacted.
During the shutdown, the FLAG portal is offline or inaccessible.
Employers cannot submit new applications, check case statuses, or upload supporting documentation.
Pending submissions are essentially frozen until funding is restored and the system comes back online.
This means that employers planning for H-1B extensions, amendments, or PERM filings will face unavoidable delays. The FLAG system outage underscores how dependent the immigration workflow is on DOL’s infrastructure.
Government Shutdown 2025: USCIS Impact
Unlike the DOL, U.S. Citizenship and Immigration Services (USCIS) operates primarily on fee funding. This gives it more stability during a shutdown, allowing most of its core services to continue. However, there are important caveats:
Programs that rely on congressional appropriations will be suspended. For example:
E-Verify is offline, affecting employers that need to verify new hires.
The Conrad 30 J-1 physician waiver program and special immigrant religious worker program may also pause.
While USCIS continues adjudicating petitions, many filings cannot move forward without certified LCAs or PERMs from the DOL. This creates a chain reaction of delays.
In past shutdowns, USCIS has shown flexibility by recognizing “extraordinary circumstances” when late filings were caused by government closure, but employers should not rely on this unless specifically announced.
Government Shutdown 2025: E-Verify Impact
The E-Verify system has been directly affected by the shutdown, and this is one of the most immediate pain points for employers:
Employers cannot create new E-Verify cases or resolve tentative non-confirmations (TNCs).
Standard deadlines for E-Verify submissions are paused until the program is reauthorized.
Employers are legally prohibited from taking adverse action against employees whose work authorization cannot be confirmed due to the shutdown.
Despite E-Verify being unavailable, Form I-9 compliance obligations remain in full effect. Employers must still complete and retain I-9 forms within the required timelines.
This disruption means employers should maintain careful records, avoid adverse actions, and be prepared to resume E-Verify checks once the system is back online.
The Interconnection: A Domino Effect
Immigration processing is not handled by a single agency. Instead, it is a multi-agency chain:
DOL certifies LCAs and PERMs.
FLAG is the system employers must use for those certifications.
USCIS requires certified DOL applications before adjudicating visa petitions.
When one link in the chain, the DOL, shuts down, the effects cascade downstream. Even though USCIS is still functioning, its ability to process cases is limited by the freeze at the DOL and FLAG stages.
This domino effect is why the current shutdown poses such a challenge to employers and foreign workers alike.
Government Shutdown 2025: What Employers & Foreign Nationals Should Do
During the shutdown, preparation and documentation are key. Here are practical steps to consider:
Expect Delays: Build extra time into hiring and immigration planning. Assume LCAs and PERMs will be delayed until the shutdown ends.
Track Case Status: Monitor any pending cases in FLAG before the shutdown to know exactly where they stand.
Document Disruptions: Keep records of shutdown-related delays. These may support arguments for extraordinary circumstances later.
Stay Flexible: Consider alternatives where possible (e.g., O-1, L-1, TN visas) if timelines are critical.
Communicate with Employees: Keep foreign nationals informed about what to expect and how their cases may be impacted.
Conclusion
The 2025 government shutdown highlights just how interconnected the U.S. immigration system truly is. While USCIS can continue many operations, the halt at the Department of Labor and FLAG system means that immigration processing is effectively slowed to a crawl.
The duration of the shutdown will determine how severe the backlog becomes. A short disruption may cause temporary inconvenience, while a prolonged shutdown could create significant processing delays across the system.
For employers and HR professionals, the best course of action is to remain informed, document every step, and be prepared to act swiftly once the DOL and FLAG systems come back online.
At OnBlick, we continue to monitor developments closely. Our compliance platform helps employers address uncertainty by streamlining immigration documentation, tracking case timelines, and ensuring readiness when government processes resume.
Want to see how OnBlick can simplify your compliance operations? Book a free personalized demo today.