US govt shutdown: Impact on H-1B, student and tourist visas decoded

US government shutdown may not stop visa processing, but Indian applicants could face slowdowns in H-1B, labour checks and embassy resources

The United States has entered its first government shutdown since 2019 after lawmakers failed to agree on a new budget. Thousands of federal employees have been sent on unpaid leave, while others are continuing to work without pay until Congress resolves the deadlock. Beyond America’s borders, the disruption could spill over to Indians waiting for visas, though the core system is expected to keep running.

 

“A US government shutdown primarily arises when Congress is unable to pass a budget or appropriations bill, which results in many federal agencies being compelled to suspend ‘non-essential’ services. However, the visa processing system is somewhat insulated from such disruptions. This is because the United States Citizenship and Immigration Services (USCIS) and the US Department of State’s consular services are largely fee-funded operations,” Adesh Nandal, Advocate at Jotwani Associates told Business Standard.

 

 

According to him, applicants pay filing and processing fees that are ring-fenced to support operations, so embassies and consulates usually keep functioning during shutdowns. “That being said, the ripple effects of a shutdown cannot be ruled out entirely. Agencies that support the visa process, such as the Department of Labor (DOL), which certifies Labour Condition Applications for H-1B petitions, or the FBI and Department of Homeland Security, which conduct certain background checks—are funded by Congressional appropriations. If their functioning is slowed or halted during a shutdown, it can indirectly lead to delays, extended processing times, or bottlenecks in particular categories of visas,” he said.

 

What visa services continue and what could slow down?

 

• Student visas (F-1) continue as consulates are fee-funded

• Tourist and business visas (B-1/B-2) continue but wait times remain long

• H-1B petitions are processed by USCIS but depend on DOL approvals

• Labour certifications and LCAs could be delayed if the DOL halts operations

• Background checks by FBI or DHS may take longer during the shutdown

• Prolonged shutdown could strain embassy resources, causing indirect slowdowns

 

How could the US shutdown affect H-1B visas?

 

Mark Davies, Chairman of Davies & Associates, LLC, explained to Business Standard that while USCIS continues to process H-1B petitions, these rely on approvals from the Department of Labor. “USCIS continues processing H-1B petitions (fee-funded) but those require an LCA. LCA is processed by the Department of Labor. During a shutdown, DOL may stop accepting or processing filings. That creates a bottleneck for new H-1B and green card cases that need labour certifications,” said Davies.

 

Sukanya Raman, immigration attorney and country head at Davies & Associates, said that for Indian applicants, the effect may initially be limited. “Consular and embassy operations may face limited disruption, since the visa processing for student visas, B visas and approved H-1B visa petitions shall continue as per schedule for now. As visa units at US embassies and consulates are also largely fee-funded, a prolonged shutdown can lead to resource constraints,” she told Business Standard.

 

Will Indian students face delays in F-1 visas?

 

Student visa applicants are unlikely to face immediate disruption, according to Nandal. “Student visa applications are consulate-driven and primarily fee-funded. Applicants travelling for the upcoming academic semester should expect services to continue as normal. However, if supporting agencies experience backlogs, applicants may need to anticipate slightly longer security clearance times,” he said.

 

Are tourist and business visas at risk of disruption?

 

Tourist and business visas are also expected to continue, though with caveats. “Tourist visa processing should not see disruption, as consulates remain operational. The bigger challenge remains the already high wait times for appointments in India, and while shutdowns may not worsen this drastically, rescheduling or administrative delays cannot be entirely ruled out if staff levels are affected,” said Nandal.

 

He added that the experience of earlier shutdowns shows the impact depends on how long the political deadlock lasts. “Broadly, the situation for Indian applicants will continue as ‘business as usual with caution’. Past shutdowns, such as the 2018–2019 US federal shutdown, demonstrated that while visa operations remained open, ancillary delays increased due to inter-agency dependencies. Thus, while core visa issuance is unlikely to stop, the applicant experience may vary depending on the duration of the shutdown and the level of inter-agency coordination,” Nandal explained.