The US government shutdown: the impact on global immigration

Global immigration is facing a range of challenges as a result of the US government shutdown. The shutdown occurred when Congress failed to pass a budget in time. It affects immigration processes, from visa processing to related services.

A US government shutdown is not a rare occurrence. It causes delays across many areas, including immigration.

Those interested in US immigration need to understand the impact in order to prepare. This article sets out a detailed analysis based on data from reputable sources.

What is a US government shutdown?

A US government shutdown occurs when no federal budget has been approved. Congress must pass annual spending bills. If no agreement is reached, some agencies must suspend non-essential operations. Essential services such as border security continue. Non-essential staff, however, are furloughed without pay.

History shows that shutdowns are usually the result of political disagreement. Examples include disputes over the budget or over immigration policy. A shutdown can last from a few days to more than a month. This affects the economy and daily life. For immigration, it disrupts administrative processes.

In 2025, the shutdown began on 1 October. The cause was a failure to reach 60 votes in the Senate. Neither party compromised in time. The situation is ongoing. It is creating uncertainty across many areas, including global immigration.

A history of US government shutdowns

To better understand the impact of past US government shutdowns, the table below sets out an analysis of the historical data. It focuses on the major shutdowns, covering their duration, cause, economic impact and specific effects on immigration.

The table helps to compare and anticipate the impact of the 2025 shutdown.

Year	President	Shutdown period	Number of days	Main cause
1981	Ronald Reagan	23–25/11/1981	2	Dispute over domestic spending cuts
1995–1996	Bill Clinton	14/11–19/11/1995 & 16/12/1995–6/1/1996	21	Dispute over the health budget and the deficit
2013	Barack Obama	1–17/10/2013	16	Disagreement over the Obamacare health law
2018–2019	Donald Trump	22/12/2018–25/1/2019	35	Funding for the Mexico border wall
2025	Donald Trump	1/10/2025 – (ongoing)	TBD	Failure to pass a new fiscal budget

How are immigration agencies affected?

The US government shutdown affects each agency differently. Some are funded by fees and so face less disruption. Agencies that depend on congressional appropriations face greater problems. A detailed analysis is set out below. This helps clarify the impact on immigration.

United States Citizenship and Immigration Services (USCIS)

USCIS operates mainly on application fees from immigrants and employers. As a result, most of its processes continue during a shutdown. Interviews, naturalisation ceremonies and biometrics processing still take place. Delays may occur, however, where another agency is involved. Examples include security checks or labour certification.

In previous shutdowns, USCIS furloughed only around 1% of its staff. In 2022, the proportion was similarly low. The Conrad 30 programme, which brings doctors to rural areas, may be suspended, however. The E-Verify system is also seriously affected. Employers cannot verify work eligibility online.

E-Verify is an important tool for employment-based immigration. During a shutdown, the system goes offline. Employers must complete Form I-9 manually. Once the government reopens, they need to update the information. States where E-Verify is mandatory face greater difficulty.

The United States Department of State (DOS) and visa processing

The State Department processes visas mainly on the basis of application fees. Consulates therefore continue to operate. Visa interview appointments generally go ahead as scheduled. If the shutdown drags on, however, capacity may be reduced. Some consulates depend on supplementary funding for staffing and security.

In 2025, many visa appointments are still going ahead. Delays may occur in administrative processes, however. Emergency visa processing for life-or-death cases remains a priority. International travel and visa-based immigration are affected indirectly. Applicants worldwide should monitor their consulate’s website.

The United States Department of Labor (DOL)

The DOL is heavily affected because it depends on congressional appropriations. The Office of Foreign Labor Certification suspends processing. This affects Labor Condition Applications (LCAs) for H-1B, H-1B1 and E-3 visas. PERM labour certification for green cards also stops. Employers cannot file new applications or process existing ones.

During the 2025 shutdown, all DOL processes relating to immigration are suspended. This is causing delays for thousands of applications. Once the government reopens, the backlog will be even larger. Employment-based immigration worldwide is directly affected. US companies find it hard to recruit foreign workers in time.

Other agencies such as ICE and CBP

US Immigration and Customs Enforcement (ICE) treats enforcement operations as essential. Arrests, removals and detention therefore continue. Separate funding from the One Big Beautiful Bill Act provides support. In 2025, ICE received US$29.9 billion for enforcement and US$5 billion for detention.

US Customs and Border Protection (CBP) also maintains border operations. Some support staff may be furloughed. This causes delays at the border, such as in processing L-1 visas. Border security is not disrupted, however. The effect on global immigration comes mainly through delays at entry.

The Executive Office for Immigration Review (EOIR)

The EOIR runs the immigration courts and depends on congressional appropriations. Non-detained hearings are suspended. This means thousands of cases have to be rescheduled. In the 2019 shutdown, 80,000-94,000 cases were postponed. Today, with a backlog of 3.4 million cases, the impact is greater.

Detained hearings continue as they are essential. Overall, however, the backlog grows. Immigrants wait longer for a decision. This affects global immigration, slowing asylum and adjustment of status processes.

The direct impact on immigration applicants

Immigration applicants face considerable difficulty during a shutdown. Application processing delays are a common problem. For example, PERM-based green card applications are suspended. Those waiting on an H-1B visa cannot obtain an LCA in time. This affects their work and life plans.

US employers find it hard to hire foreign workers. With E-Verify down, verification slows. Companies in states where E-Verify is mandatory must keep records manually. After the shutdown, they need to update them quickly. Federal contractors face greater risk.

Sarah Kelly Elfreth, an American politician, said in an article:”Those waiting for a visa interview may have their appointment rescheduled. This is particularly so where a consulate reduces capacity. International students and temporary workers are affected. SEVIS continues to operate, but new visas are slow. If the situation drags on, job opportunities may be lost”.

During the 2025 shutdown, thousands of people worldwide are waiting. The psychological impact is also considerable. Uncertainty erodes confidence in the US immigration system. Applicants need to prepare financially for delays.

Shutdown period	Duration (days)	Main cause	Economic impact	Impact on immigration	Key figures
November 1995	5	Dispute over the budget and economic forecasts between President Clinton and the Republican Congress	Cost to government of US$400 million	Disruption to passport and visa processing	No specific figures on the backlog
December 1995 – January 1996	21	Continued budget dispute and spending cuts	Millions of dollars in lost revenue from tourism and aviation	Disruption to passport and visa processing	No specific figures on the backlog
October 2013	16	Republican attempt to repeal the Affordable Care Act (ACA)	US$24 billion lost to the economy, GDP down 0.6% in the fourth quarter of 2013	Serious disruption to asylum processing and legal immigration cases	No specific figures on the backlog
January 2018	3	Dispute over DACA and protection for the Dreamers	Not determined	Focused on immigration policy, with demands for DACA protection	No specific figures on the backlog
December 2018 – January 2019	35	Dispute over funding for the border wall	Cost of US$5 billion (including US$3 billion in back pay and US$2 billion in lost tax revenue); reduced economic growth	Delays to regulatory approvals and non-detained immigration hearings	80,000-94,000 cases postponed; the backlog at the time stood at around 1 million cases
October 2025 (ongoing)	8 (as at 08/10/2025)	Failure to reach 60 Senate votes for the spending bill	Not yet determined, but billions of dollars are expected to be lost	E-Verify and DOL suspended; non-detained hearings postponed	The current backlog stands at more than 3.4 million cases; tens of thousands of cases may be postponed each day

The impact on global immigration

The US government shutdown has a wide-ranging impact on global immigration. The United States is a leading destination for migration. Visa delays affect the flow of people from Asia, Europe and Latin America. Multinational companies struggle to transfer staff.

The global economy is affected indirectly. The United States lost billions of dollars during previous government shutdowns. The 2018-2019 shutdown, for example, reduced economic output by US$11 billion. That included US$3 billion that could not be recovered. It slowed GDP growth by 0.02%.

Immigration contributes a great deal to the US economy. Foreign workers fill employment gaps. Visa delays reduce productivity. Tourism and aviation lose billions of dollars a week. A survey by Ipsos shows that most Americans believe a government shutdown damages the economy and tourism.

Economic data is not published during a shutdown. This affects global markets. Investors lack information on employment and inflation. Global immigration slows, affecting supply chains. Examples include shortages of technology workers from India or China.

The social impact is also considerable. Families waiting to be reunited face longer waits. Refugees and asylum seekers face a bigger backlog. This increases pressure on other countries. Global immigration becomes more unstable as a result of US policy.

The effect on America’s image and standing among immigrants worldwide

One of the less discussed consequences is the damage to national standing. The United States has always been seen as a symbol of political stability and effective governance. Repeated shutdowns, however, erode the confidence of immigrants, particularly amid competition from countries such as Canada, Australia and the United Kingdom – countries with more flexible immigration policies.

According to data from Migration Policy Institute, investment and study visa applications fall by more than 18% in the first quarter following each government shutdown lasting more than 15 days.

Advice from immigration experts

An immigration expert with more than 15 years’ experience in California offers the following advice to those who are filing or about to file:

1. Follow the US political and budget situation closely. This helps in planning when to file and avoiding risky periods.
2. File early and stay in contact with an immigration lawyer. If an application stalls, a lawyer can propose interim options so that residence status is not breached.
3. Prepare documents thoroughly and be ready to submit further material. Once the government resumes operations, the backlog is very large, so complete applications will be prioritised for processing.
4. Consider settling in another country. Those planning to invest or study abroad should also consider countries such as Canada or Australia during periods of political instability in the United States.

Conclusion

The US government shutdown has far-reaching effects on global immigration. From visa delays to economic disruption, the issue affects millions of people.

Agencies such as USCIS and the DOS continue for the most part, but the DOL and EOIR are heavily affected. Those interested in US immigration need to follow developments closely and hope that the 2025 US government shutdown ends soon so that the system can stabilise.