The US government has entered a shutdown state starting Wednesday, October 1st, with multiple services being interrupted and some agencies ceasing operations, leaving employees on unpaid leave. This government shutdown has cut off funding to the Department of Labor, which is a key entity that handles the controversial H-1B visa program and green card applications based on H-1B visas.
The Department of Labor has currently closed all new H-1B visa and green card processing procedures. H-1B visas are non-immigrant visas that allow US employers to hire foreign professionals in fields such as technology, engineering, medicine, and academia to address the shortage of related skills domestically. The employer sponsors the H-1B visa application, while the employee is the beneficiary of the H-1B visa.
Before sponsoring an H-1B visa, the employer must first submit a Labor Condition Application (LCA) to the Department of Labor, which must be approved before the case can be advanced to the US Citizenship and Immigration Services (USCIS).
Those who did not receive LCA approval before October 1st will be affected, as H-1B visa issuance will be halted until the Department of Labor resumes operations.
The government shutdown also affects green card applicants based on H-1B visas. The Department of Labor is responsible for issuing PERM certifications, which are required before applying for employment-based green cards.
Applicants who obtained certification for H-1B visas and green cards before October 1st are not affected because USCIS can continue processing such applications during the government shutdown using visa fees to sustain operations.
The government shutdown has caused anxiety among many H-1B visa applicants, including those with families, as the timely issuance of visas will have a significant impact on their careers and families. Start-up companies will also face uncertainty in human resources, as the recruitment and renewal channels for high-skilled visas have been completely frozen.
The Trump administration has repeatedly stated its intention to significantly reform the current H-1B visa system. Previously, on September 19th, the Trump administration announced a substantial increase in H-1B visa fees for new applicants, with a one-time application fee as high as $100,000. It was later announced that the current lottery system would be overhauled to prioritize high-wage workers. The Department of Homeland Security (DHS) proposed a weighted selection based on the skill level required for the position and wages, replacing the current simple random lottery system.