In February 2026, the Department of Homeland Security (DHS) experienced a funding lapse after congressional negotiations stalled over immigration policy reforms.
This has triggered a partial government shutdown that affects immigration services differently depending on how each agency is funded and authorized to operate during lapses in appropriations.
Key Takeaways
- USCIS continues processing most immigration benefits because it’s largely funded by application fees, not annual appropriations.
- Department of Labor (DOL) immigration functions pause, halting new labor certifications, prevailing wage requests, and LCAs required for many employment-based visas.
- E-Verify is offline, and employers must still complete I-9 verification, but cannot run E-Verify cases.
- Visa and consular operations abroad remain open while fee funding lasts, but prolonged shutdowns can limit services.
- ICE and CBP enforcement continue as they are “essential.”
- Legal operations and immigration court hearings generally continue, though administrative support functions may slow.
- Backlogs will grow as suspended services can’t be completed until appropriations are restored.
How Do Government Funding Laws Affect Immigration Agencies?
U.S. law requires that federal agencies have appropriations from Congress to operate. When funding lapses, agencies must follow contingency plans, identifying which functions are “essential” (continuing) and which are suspended.
USCIS and many immigration benefits are paid by user fees, giving them greater continuity even when appropriations expire.
USCIS Fee-Funded Services Continue During DHS Shutdown
U.S. Citizenship and Immigration Services operates primarily on fee revenues paid by applicants and petitioners. Because of this:
- USCIS continues processing family-based petitions (e.g., Form I-130).
- Work-related forms like Form I-765 (EAD) and travel documents (Form I-131) continue.
- Naturalization applications (N-400) and adjustment of status filings (I-485) are ongoing.
- Field offices, biometrics appointments, and interviews remain scheduled.
Even official government contingency plans confirm that the core adjudication of most immigration benefits is protected during a shutdown because of fee funding.
USCIS’s shutdown guidelines have explicitly stated that almost all fee-funded operations continue even if federal appropriations lapse.
DOL Shutdown Impact: LCAs, PERM, and Prevailing Wage Processing Halted
The U.S. Department of Labor relies on congressional appropriations. During the shutdown:
- Labor Condition Applications (LCAs) for H-1B, H-1B1, and E-3 petitions are halted.
- Prevailing wage determinations and PERM labor certifications are not processed.
- The FLAG system (DOL’s online platform) is taken offline.
These are critical steps for many employment-based visa petitions, and their pause creates a significant bottleneck for employers and foreign workers.
DOL’s shutdown contingency plans direct the suspension of immigration-related adjudications in the absence of appropriations, which legally obligates the agency to stop non-essential services.
Federal Court Decisions: Has the $100,000 H-1B Fee Been Blocked or Upheld?
The $100K H-1B visa fee has faced significant legal challenges since its implementation. In October 2025, multiple business groups, including the U.S. Chamber of Commerce, filed federal lawsuits arguing that the fee exceeded executive authority and was unlawful under U.S. immigration law.
The lawsuits aimed to halt the fee enforcement and protect employers from the sudden financial burden of sponsoring foreign workers.
Federal courts have rejected efforts to permanently block the fee, allowing it to remain in effect for qualifying new H-1B petitions. Legal challenges continue, but enforcement proceeds, meaning employers sponsoring foreign workers from abroad must comply with the $100,000 fee requirement.
Key points:
- Lawsuits filed: October 2025 by employer coalitions
- Court decisions: Fee upheld while litigation proceeds
- Practical effect: Fee remains active for new petitions outside the U.S.
Government Shutdown Impact on E-Verify and Form I-9 Compliance
The E-Verify employment eligibility verification system is currently unavailable during the shutdown, as it depends on federal funding. However, federal law still requires employers to complete Form I-9 for every new hire. During the suspension:
- Employers must still complete I-9s within three business days.
- E-Verify deadlines and new queries are paused.
- Employers can’t take adverse action based on E-Verify delays.
U.S. Code mandates I-9 verification for employment authorization regardless of shutdown status. E-Verify suspension doesn’t impact this legal requirement.
Visa Processing and Consular Services Continue During DHS Shutdown
The Department of State’s visa operations rely on user fees and consular revenues, meaning:
- U.S. embassies and consulates continue visa interviews and adjudications.
- Long-term staffing shortages or prolonged shutdowns could slow operations, but no legal directive shuts these services down immediately.
Visa issuance abroad is generally not directly affected by DHS funding lapses because these services are funded by applicant fees and maintain separate operational budgets.
Border Enforcement and “Essential” DHS Operations Continue
Under government shutdown rules, “essential” functions that protect life and property remain active. Within the immigration system:
- Customs and Border Protection (CBP) continue inspections and port-of-entry duties.
- Immigration and Customs Enforcement (ICE) continue enforcement and removals.
- Student and Exchange Visitor Program (SEVP) remain in operation as it is fee funded.
Federal shutdown guidance designates border security and safety-related functions as essential to national security.
Immigration Courts and EOIR Operations During DHS Shutdown
The Executive Office for Immigration Review (EOIR), which oversees immigration courts, has historically operated with a mix of fee and appropriations funding. During a shutdown:
- Detained cases and essential hearings proceed.
- Some administrative support may be limited, potentially delaying non-detained docket scheduling.
EOIR has indicated that immigration courts remain generally functional, but local conditions may vary.
Long-Term Backlogs and Strategic Considerations
Even if agencies remain operational, interagency dependencies create delays:
- USCIS may continue, but cases requiring DOL certification can’t move forward until funding returns.
- Backlogs often grow during prolonged funding lapses, leading to extended processing times after reopening.
Applicants should plan filings ahead, monitor official agency updates (such as USCIS.gov and travel.state.gov), and prepare for adjusted timelines.
Frequently Asked Questions (FAQs)
1.What happens to USCIS processing during a DHS shutdown?
USCIS continues processing most applications because it is primarily fee funded. Forms like I‑130, I‑485, I‑765, and naturalization petitions remain active, but delays may occur if cases require input from other agencies like the Department of Labor.
2.Are visa interviews at U.S. consulates affected by the shutdown?
Most visa interviews continue as consulates operate on applicant fees, not congressional appropriations. However, prolonged shutdowns or reduced staffing may delay scheduling or processing.
3.Can I file an H‑1B petition during the DHS shutdown?
You can file USCIS forms, but H‑1B petitions requiring a Labor Condition Application (LCA) from the Department of Labor cannot move forward until DOL services resume.
4.Is E‑Verify operational during a government shutdown?
No. E‑Verify is offline during the shutdown. Employers must still complete Form I‑9 for all new hires but cannot run verification of queries until the system is restored.
5.Do immigration courts continue hearings during a shutdown?
Detained cases and essential hearings proceed, but some administrative support and non‑detained hearings may be delayed due to staffing limitations.
6.Will a DHS shutdown affect green card processing?
Green card filings via USCIS continue, but employment-based green cards requiring PERM certification or DOL approvals may experience delays until the Department of Labor resumes operations.
7.Which immigration services are considered essential during a shutdown?
Essential services include border security, ICE enforcement, CBP inspections, and SEVP (student visa) operations. Fee-funded services like USCIS processing also continue, while appropriations-dependent functions like DOL labor certifications are suspended.
