The US government has officially shut down on October 1, 2025, due to Congress's failure to pass a budget or funding resolution. This has led to the suspension of many non-essential government services. The shutdown has direct implications for H-1B visa processing, impacting Indian professionals and companies who rely on this visa program.
How the Shutdown Impacts H-1B Visas
The effects of the government shutdown on H-1B visas are uneven. Some processes will continue, while others are likely to face delays or suspension.
- Labor Condition Applications (LCAs): A significant hurdle for H-1B applicants is the Department of Labor's (DOL) inability to approve Labor Condition Applications (LCAs), which are a crucial step in the H-1B petition process. Because the DOL has shut down its systems, new applications and extensions requiring an LCA cannot be filed during the shutdown.
- USCIS Operations: The US Citizenship and Immigration Services (USCIS) remains operational because it is fee-based. This means that green card processes, visa renewals, and certain ongoing immigration cases can continue.
- H-1B Amendments: If an H-1B employee needs to change their work location, an amendment must be filed. The shutdown affects the ability to file these amendments if they require a new LCA.
- Travel: For H-1B visa holders currently in the U.S., the shutdown does not prevent them from traveling in and out of the country. Their visa status remains valid, and Customs and Border Protection (CBP) will continue operations at airports and land crossings.
- New H-1B Application Fee: A new application fee of $100,000, introduced in September 2025, applies to new H-1B petitioners. This fee only impacts new applicants and not current visa holders or those seeking visa renewals. This added cost, along with shutdown-related delays, creates further uncertainty for employers and new applicants.
- Visa Integrity Fee: As of October 1, all non-immigrant visa applicants, including students, must pay a $250 Visa Integrity Fee, plus additional charges.
Impact on Indians
The US government shutdown and resulting delays in H-1B visa processing can create considerable uncertainty for Indian professionals and companies. Indians are major beneficiaries of the H-1B visa program, and any disruption can have significant consequences. The delays in processing new applications and extensions can disrupt project timelines, hinder recruitment efforts, and create anxiety for individuals awaiting visa approvals.
Potential Shifts to Indian GCCs
The Trump administration's crackdown on H-1B visas, including the new $100,000 application fee, may lead to US firms shifting more high-end work to their global capability centers (GCCs) in India. These GCCs handle operations ranging from finance to research and development. This shift would provide a boost to the growth of Indian GCCs.
Shutdown Details
The government shutdown began after lawmakers failed to reach an agreement to extend government funding. Republicans and Democrats are blaming each other for the impasse. As many as 750,000 government workers could be furloughed, and they will not be paid until Congress appropriates funding and the shutdown ends. Essential workers will stay on the job, although they will also not be paid until Congress reaches a funding deal. The shutdown will continue until Congress passes a bill to fund the government.
