The Federal Government officially shut down due to a lapse in funding. The lapse in appropriations occurred effective October 1, 2025, 12:00 am. The shutdown happened due to a disagreement regarding federal funding.
As such, certain government agencies will not operate during the shutdown due to the lack of appropriate funds. The Department of Labor (DOL) will not operate during the shutdown; thus, the Foreign Labor Application Gateway (FLAG) system will not function at this time. The FLAG system will not allow us to access pending Labor Condition Application (LCA) or apply for new LCAs.
Though most government agencies are not operating during the shutdown, United States Customs and Immigration Services (USCIS) is operating, as it is a fee-based agency. Any H1Bs that have an LCA already certified can continue filing the petition without any issues. However, any H1B petitions where the LCA is pending with DOL or needs to be filed with DOL will be on hold until FLAG is restored.
For employers with foreign workers, the most important thing is making sure no one has any gaps in their legal status. The following actions help employers mitigate the impact of a government shutdown:
- Communicate with stakeholders about expected processing delays.
- Rectify any upcoming gaps in status for foreign workers.
- Anticipate additional expenses for foreign worker programs when allocating the organization’s budget.
- Contact appropriate Congressional representatives and inform them of the shutdown’s impact on the organization.
As always, Immigration USA actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, please contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws and policy updates. In an ever-evolving immigration landscape, we’re with you every step of the way.