US shutdown halts H-1B, green card processing; Indian professionals hit hardest

The ongoing US government shutdown has frozen key services, forcing agencies to halt operations, furlough staff, or continue work without pay. Among the hardest hit is the processing of H-1B visas and green cards, vital for thousands of Indian professionals.

Immigration lawyers say the disruption stems from funding cuts to the US Department of Labor (DOL), which is central to the visa process, according to Hindustan Times. Before a company can sponsor an H-1B, it must first file a Labour Condition Application (LCA) with the DOL. The department also issues the PERM certification that underpins employment-based green cards.

With funding paused as of October 1, new applications have stalled. “That means, nobody can get a new H-1B, transfer employers, or change status to H-1B unless they already got the LCA signed before today. H-1Bs will be unavailable until the DOL resumes operations,” said Henry Lindpere, immigration lawyer at Manifest Law, told HT.

Impact on Indians

Over 71% of H-1B visas are currently awarded to Indians, making them the most vulnerable to the freeze. Sophie Alcorn, a Silicon Valley-based immigration lawyer, talked about how for the Indian diaspora, who apply for the majority of the H-1B visas and employment-based green card applicants, the biggest immediate impact comes from the Department of Labor.

There is limited relief available for applicants with certifications that have already been approved. The US Citizenship and Immigration Services (USCIS), which runs on visa fee funding, can continue to process applications already in the system.

Larger context

The shutdown, which began at 12:01 a.m. on October 1, has no announced end date. The last such standoff during Donald Trump’s presidency stretched 35 days, the longest in four decades.

This disruption also comes as the Trump administration pushes for sweeping changes to the H-1B system, including a $100,000 fee for new applicants and an overhaul of the lottery to prioritise higher-wage workers. Trump has defended the shutdown itself, saying: “A lot of good can come from shutdowns, we can get rid of a lot of things we didn't want, and they'd be Democrat things.”