Shutdown Showdown: The Looming Threat to Immigration Services Amidst Fiscal Disputes

Flavia Santos • September 28, 2023
      Every year, as the new federal fiscal year begins, the United States Congress faces the pivotal task of reaching a consensus on funding for the federal government. Should Congress fail to come to an agreement and pass the required appropriations bill, there is a potential for a partial government shutdown to take place.

The consequences of such a shutdown would only be uniform across some government agencies if it were to happen on October 1, 2023. The extent of the impact would fluctuate, particularly for agencies dealing with immigration-related matters, depending on several factors, including their ability to generate fees and other considerations.

Despite the uncertainty, it is anticipated that certain essential government functions would persist, ensuring that core services and responsibilities continue to be met, even in the event of a government funding impasse. Though a government shutdown is not definite, if it happens, we can anticipate delays in immigration benefits. Drawing from past shutdowns, it's likely that immigration services will be disrupted.

The U.S. Citizenship and Immigration Services (USCIS) 


The U.S. Citizenship and Immigration Services (USCIS) functions primarily on fees rather than government funding. USCIS offices typically remained open in previous shutdowns, but we should anticipate slower operations and processing bottlenecks.

This slowdown occurs because of reduced staffing levels, mainly when USCIS adjudicators depend on other government functions to make decisions. While USCIS is not heavily reliant on government funding, the interconnectedness of various agencies can indirectly affect its efficiency during government shutdowns, leading to potential delays in immigration-related services and decisions.


Speaking of the direct impact of Immigration on the federal government, the funding structure, and potential effects of government shutdowns on specific U.S. government agencies and their immigration-related functions are noteworthy.


Department of State (DOS)


The U.S. Department of State, which plays a pivotal role in managing visa applications and U.S. citizen services, relies on funding from visa application fees and related charges. This funding model has historically allowed the department to maintain essential services, including visa processing for citizens and immigrants.


However, in the event of an extended government shutdown, nonemergency services could be affected, possibly resulting in the suspension of various visa-related functions. This would manifest as the non-issuance of business and employment visas and potential cancellations or rescheduling of pending visa application appointments.


Department of Labor (DOL)


On the other hand, the U.S. Department of Labor (DOL) faces more substantial challenges during government shutdowns. Unlike fee-generating agencies, DOL relies heavily on government funding. Consequently, past government shutdowns have significantly impacted DOL's immigration-related functions.


This disruption has been particularly evident in labor condition applications (LCAs), PERM labor certification applications, and prevailing wage requests. During shutdowns, these functions were typically suspended, accumulating backlogs and extended processing times even after government operations resumed.


These distinct funding models and historical trends highlight agencies' varying vulnerabilities regarding immigration-related services during government shutdowns. It underscores the importance of budgetary considerations and contingency planning to ensure the continuity of essential immigration functions, particularly when fee-based funding models may provide some resilience but are not immune to disruptions caused by extended government shutdowns.


The incapacity to handle LCAs would directly influence employers' capacity to proceed with H-1B, H-1B1, and E-3 petitions. Additionally, if a government shutdown occurs, it is highly probable that E-Verify, the system employers use to confirm employment eligibility, will be non-operational.


Consequently, employers could commence, address, or fulfill necessary deadlines within the system once it is reinstated following the resumption of government operations. It's essential to underscore that employers will still be obligated to conduct I-9 verifications without any exemptions or exceptions, even without E-Verify functionality.


In summary, a U.S. government shutdown is poised to extend processing durations for various immigration-related affairs. The primary repercussions, particularly for U.S. employers hiring foreign workers, encompass:


  • The incapacity of employers to secure approved LCAs for H-1B, H-1B1, and E-3 petitions.


  • The Department of Labor's inability to handle PERM labor certification applications and determine prevailing wages.


  • The potential hindrance for individuals seeking to apply for business and employment visas to enter the United States.



As mentioned earlier, a shutdown isn't the most probable scenario, but considering the current situation with immigrants, it is likely an option that is executed. We'll be the first ones to inform you of any developments that come about in this situation.

This blog is not intended to be legal advice and nothing here should be construed as establishing an attorney client relationship. Please schedule a consultation with an immigration attorney before acting on any information read here.

Flavia Lloyd

USCIS Gender Policy Shift Raises Concerns for Asylum Applicants Based on Gender Identity

By Angelica Rice • April 17, 2025
On March 31, 2024, U.S. Citizenship and Immigration Services (USCIS) implemented a policy update that limits gender marker selections on all immigration forms and systems to two biological sexes: male and female. This change eliminates the option for applicants to select a non-binary or “X” gender marker—an option that had previously been permitted on some forms. While USCIS emphasizes that this update does not change who qualifies for immigration benefits, it may significantly impact how certain applications—particularly asylum claims based on gender identity-related persecution—are understood and evaluated. What Has Changed? Under the revised policy, applicants may now only choose “Male” or “Female” when completing USCIS forms. The ability to select a non-binary or third-gender option is no longer available. Applicants may still request to change their gender marker with USCIS, but only within the male/female binary. Supporting documentation, such as medical or legal records, is not required to make the change. This means that transgender individuals can still align their gender marker with their identity—if it falls within the two binary categories—but non-binary individuals are no longer represented. The change follows guidance issued by the federal Office of Management and Budget (OMB), which called for greater consistency in the collection of sex and gender data across federal agencies. Impact on Asylum Applicants This policy update is especially important for individuals applying for asylum based on persecution related to their gender identity. Under U.S. immigration law, asylum is available to people who have suffered persecution—or fear future persecution—based on their membership in a “particular social group.” This includes people targeted for being transgender, gender non-conforming, or otherwise not aligning with socially expected gender roles in their home country. Although the legal standard for asylum remains unchanged, the removal of the non-binary gender marker could make it harder for some applicants to clearly present and document their identity. In asylum cases, credibility and clarity are crucial. The ability to accurately reflect one’s gender identity on official forms can play an important role in establishing the foundation of a persecution claim. Now, applicants who identify as non-binary or outside the traditional male/female categories may be forced to select a gender that does not align with their lived experience. This could lead to confusion in their case file or require additional explanation during interviews or hearings. This policy could weaken the strength of some asylum claims—not because the underlying facts have changed, but because the official forms now fail to reflect the applicant’s true identity. For example: A non-binary person applying for asylum after being targeted in their home country may now have to select “Male” or “Female” on their asylum application, despite not identifying as either. This mismatch may lead adjudicators to question the applicant’s identity, possibly weakening the strength of the claim or requiring added clarification and documentation. In defensive asylum cases—where applicants are in removal proceedings—such inconsistencies could create unnecessary hurdles and complicate the evidentiary presentation. What Can Applicants Do? Despite the change, individuals can still pursue asylum based on gender identity. The underlying eligibility criteria remain the same. However, applicants should be prepared to clearly explain any differences between their stated identity and the gender marker required on USCIS forms. Applicants are encouraged to: Include a personal declaration explaining their gender identity in detail and how it relates to their fear of persecution. Provide evidence such as affidavits, country condition reports, or expert testimony that supports the claim. Work with an experienced immigration attorney who can help present the claim effectively and prepare for any questions that might arise from the new form limitations. The new USCIS policy on gender markers may seem like a technical update, but for asylum seekers fleeing gender-based persecution, it has real implications. While individuals are still legally eligible to seek protection, the limitation to binary gender options could make it more difficult to fully and clearly present their case.  If you or someone you know is facing immigration challenges related to gender identity—or is concerned about how this policy may impact an asylum claim—please contact Santos Lloyd Law Firm to schedule a consultation with one of our experienced immigration attorneys. We’re here to help ensure your voice is heard and your case is handled with the care and expertise it deserves.

Extreme Vetting – What Is It and What Are the Impacts?

By Santos Lloyd Law Team • April 10, 2025
In 2025, the immigration landscape continues to shift under the weight of national security concerns, ushered in by Executive Order “ Protecting the United States From Foreign Terrorists and Other National Security and Public Safety Threats. ” This directive tasks federal agencies—including the U.S. Department of State—with implementing enhanced screening and vetting protocols for all foreign nationals seeking visas or other immigration benefits. The result? A dramatically intensified vetting process, along with mounting concerns from immigrants, attorneys, and civil liberties advocates alike. Traditionally, airport security focused on verifying travel documents and screening for prohibited items, while consular officers assessed the legitimacy of visa petitions and the admissibility of applicants. Extreme vetting, however, represents a significant shift toward a far more invasive and comprehensive investigative process. It now includes detailed background checks, biometric verification, digital forensics, and expansive scrutiny of an applicant’s online presence and criminal or financial records. Since President Trump’s second term began in January 2025, the implementation of extreme vetting has expanded rapidly. Today, border screenings go far beyond routine document checks, encompassing a full-scale evaluation of a traveler’s digital life. This pivot reflects the administration’s intensified focus on national security, but it has also triggered urgent discussions about privacy, due process, and the fairness of modern immigration enforcement. At U.S. ports of entry—especially airports—noncitizens are now subject to rigorous and invasive procedures, including: Inspection of cell phones, laptops, and other devices (including deleted content) Review of social media activity on platforms like TikTok, Instagram, and X (formerly Twitter) Biometric scanning, including fingerprinting and facial recognition These measures are no longer confined to travelers from high-risk countries. In practice, extreme vetting applies broadly across all nationalities, and increasingly affects lawful permanent residents as well. For noncitizens, this new landscape introduces a heightened level of uncertainty and vulnerability. Delays at U.S. consulates for visa issuance or renewal are becoming routine. Travelers must now be acutely aware of these changes, and those attending consular interviews or seeking visa renewals should be prepared to provide additional documentation verifying their maintenance of status, compliance with visa conditions, and the bona fide nature of their visa applications. It is critical to organize supporting materials in advance and be ready to answer questions about employment, education, travel history, and online activity. As the U.S. government continues to expand its use of data-driven risk assessment tools, travelers must adapt to a new normal, one where preparation is essential to navigating the immigration system without disruption.

Trading with the U.S.? You Might Qualify for a Visa

By Shirin Navabi • April 3, 2025
For international business owners and entrepreneurs engaged in cross-border trade with the United States , the opportunity to expand operations and establish a physical presence in the U.S. may be more accessible than expected. The E-1 Treaty Trader Visa is specifically designed to facilitate this type of business activity and offers a strategic pathway for qualifying individuals to live and work in the United States while managing or developing trade relationships. While 2025 has brought a trend of changes in immigration policy, the E-1 visa continues to stand out as a viable and welcoming option . Despite increased scrutiny across various immigration categories, this visa remains suitable for those involved in consistent, qualifying trade with the U.S. Its structure and purpose align well with current business realities, making it a stable choice even amid policy shifts. The E-1 visa is available to nationals of countries that maintain a treaty of commerce and navigation with the United States . To qualify, applicants must demonstrate that they are engaged in substantial trade—defined as a continuous flow of sizable international transactions—primarily between their home country and the U.S. Unlike investment-based visas, the E-1 visa does not require a fixed monetary threshold. Instead, it emphasizes active commercial exchange, such as the regular transfer of goods, services, or technology. This visa is applicable across a wide range of industries , including but not limited to manufacturing, logistics, professional services, consulting, finance, tourism, and technology. If more than 50% of your international trade is with the United States, and the business activity is consistent and well-documented, the E-1 visa may be a strong fit for your current business model. In addition to its flexibility, the E-1 visa is renewable as long as the trade activity continues. It also extends benefits to eligible family members: spouses and unmarried children under 21 may accompany the principal visa holder, and spouses are eligible to apply for U.S. work authorization, offering added support and financial opportunity for the family. This visa category is particularly well-suited for business professionals who are already operating in international markets and looking to formalize or expand their presence in the U.S. It rewards active engagement, proven commercial performance, and long-term trade partnerships. If you are currently engaged in trade with the United States and are considering expanding your business operations, the E-1 Treaty Trader Visa may provide a clear and effective route forward. Our attorneys at Santos Lloyd Law Firm are here to help you assess your qualifications and guide you through each stage of the process with clarity, strategy, and confidence.
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