Potential Immigration Impacts on Employers of Another Government Shutdown

Quick Hits

• To avoid a partial government shutdown, a funding package for the departments of Defense, Homeland Security, Transportation, Housing and Urban Development, Health and Human Services, Labor, Education, Treasury, State, and other agencies must pass the U.S. Senate before January 30, 2026.
• A government shutdown of these departments would suspend critical immigration functions, including PERM processing, prevailing wage determinations, and Labor Condition Applications.
• E-Verify would also likely be unavailable, and immigration-related services at U.S. consulates abroad could be reduced or suspended due to limited State Department operations.

The Senate and U.S. House of Representatives have passed six of the twelve required appropriations bills funding agencies, including the U.S. departments of Agriculture, Commerce, Energy, Interior, and Justice. The House passed a funding package on January 22, 2026, that would fund the remaining agencies, including the U.S. departments of Defense, Homeland Security, Health and Human Services, Labor, Education, Transportation, Housing and Urban Development, State, and Treasury. The Senate must now vote on the package to prevent a partial government shutdown of these agencies on January 30, 2026.

A partial government shutdown involving these agencies could delay many immigration matters, but the most significant impacts for U.S. employers would include:

• Certified LCAs: Employers would be unable to obtain certified Labor Condition Applications (LCAs) for H-1B, H-1B1, and E-3 petitions.
• PERM and Prevailing Wages: Processing of PERM labor certifications and prevailing wage determinations could halt.
• Consular Services: Foreign nationals could face delays in obtaining employment-based visas at U.S. embassies and consulates.
• E-Verify: If the E-Verify system is taken offline, employers would be unable to initiate new cases or resolve tentative nonconfirmations for active cases.
• U.S. Citizenship and Immigration Services (USCIS): As a fee-generating agency, USCIS would remain operational and continue to process applications. However, processing delays could arise due to the impact on other government agencies.
• U.S. Customs and Border Protection (CBP): Although the CBP is funded by the U.S. Department of Homeland Security, its inspection and law enforcement functions are considered essential and should continue.

Employers seeking further guidance can also review a detailed analysis of the immigration implications of a government shutdown here.

Ogletree Deakins’ Immigration Practice Group will continue to monitor developments and will post updates on the Immigration blog as additional information becomes available.

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