How the US govt shutdown may affect Indians in visa processing

The ongoing US government shutdown is expected to disrupt numerous services, with some agencies halting operations, employees placed on unpaid leave, and others required to work without pay until the government reopens. 

Among the most affected will be the processing of H-1B visas and green cards, which are vital for thousands of Indian professionals.

Immigration experts say the shutdown is likely to snap funding to the US department of labor, key to the processing of H-1B visas and green cards.

Before a company can sponsor an H-1B visa, it must first file a Labor Condition Application (LCA) with the US Department of Labor. Approval of the LCA is a crucial step for the petition to move forward with immigration authorities.

As per reports, this means that no one can obtain a new H-1B, transfer to a different employer, or change their status to H-1B unless their LCA was already approved before October 1. H-1B processing will remain on hold until the DOL resumes operations.

The US Embassy in India posted on X, “At this time, scheduled passport and visa services in the United States and at US Embassies and Consulates overseas will continue during the lapse in appropriations as the situation permits.”

During a government shutdown, federal agencies are prohibited from spending money except on emergency functions, so all nonessential activities are paused until Congress approves funding again.

Indians are one of the most significant beneficiaries of the H-1B visas.

According to Indian government data, the number of Indians increased from 94,145 in 2020 to 348,629 in 2024, marking a 270% rise. Under Trump’s new visa policy, this flow of skilled Indian workers to the US could now be effectively halted.