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

The E-2 Visa: A Strong Investment Opportunity in Changing Political Times

By Shirin Navabi • February 13, 2025
The E-2 Visa is a non-immigrant visa that allows foreign investors from treaty countries to live and work in the United States by starting or purchasing a business. Unlike other visa categories, it does not require a fixed minimum investment amount. Instead, applicants must demonstrate that their investment is substantial and sufficient to ensure the success of their business. The visa is renewable indefinitely as long as the business remains active and meets the necessary criteria, making it an attractive option for entrepreneurs seeking long-term opportunities in the U.S. One of its key advantages is flexibility. Investors can establish a new business, acquire an existing one, or enter into franchise opportunities. Additionally, spouses and children under 21 can accompany the primary applicant, with spouses eligible to apply for work authorization. This makes the E-2 Visa a practical option for business-minded individuals looking to establish themselves in the U.S. market. While the E-2 Visa itself has remained a stable option, shifts in U.S. immigration policies have influenced the application process and overall investor experience. Understanding these changes is essential for anyone considering this pathway. Policy Shifts and the E-2 Visa: Lessons from the Past During the first Trump administration (2017–2021), U.S. immigration policies became more restrictive across multiple visa categories. Although the E-2 program was not directly limited, broader changes had an impact. The "Buy American, Hire American" Executive Order, signed in 2017, led to heightened scrutiny of visa applications, requiring investors to provide stronger evidence that their business would create jobs and contribute to the U.S. economy. This resulted in an increase in Requests for Evidence (RFEs) and denials for those unable to meet these expectations. Another significant change was the suspension of the Interview Waiver Program, which meant all E-2 applicants, including renewals, had to attend in-person interviews at U.S. embassies. This extended processing times and increased scrutiny of applications. Additionally, visa reciprocity agreements were reviewed and adjusted, impacting validity periods and costs for certain countries. For instance, Iranian citizens were deemed ineligible for the E-2 Visa due to the termination of the treaty. These adjustments significantly affected investors from impacted nations, increasing their costs and renewal frequency. Despite these policy shifts, the approval rate for E-2 visas remained relatively stable. According to data from the U.S. Department of State, there were over 43,000 approvals in 2019, reflecting the program’s continued viability. Even in 2020, when the COVID-19 pandemic caused global disruptions, approval numbers remained significant. These figures highlight that while the process became more rigorous, well-prepared investors continued to secure visas by demonstrating strong business plans, substantial investments, and clear economic contributions. What to Expect Moving Forward As the new Trump administration takes shape, further immigration policy changes are likely. While it is too soon to predict the exact impact on the E-2 Visa, past trends suggest increased scrutiny. However, the program itself has remained intact across multiple administrations, reinforcing its reliability for foreign entrepreneurs. Those considering this visa should stay informed and ensure their applications meet evolving requirements. A well-prepared investment strategy, clear documentation, and a defined job creation plan can make a significant difference in navigating any potential policy shifts. Why the E-2 Visa Remains a Strong Choice The E-2 Visa continues to be a resilient and valuable option for foreign entrepreneurs. Even during periods of policy change, approval rates have remained strong for investors with well-structured applications. The ability to renew indefinitely, combined with its flexibility in investment size and business type, makes it one of the most attractive pathways for international investors. With the right preparation, investors can confidently pursue the E-2 Visa, knowing that history has shown its stability even amid shifting political landscapes. By staying ahead of policy changes and ensuring a solid business strategy, entrepreneurs can take advantage of the opportunities the U.S. market has to offer. If you are ready to take the next step toward launching your business in the U.S., you can contact our office for expert guidance and personalized assistance with your application.

The Laken Riley Act: A New Era of State Involvement in Federal Immigration Policy

By Kris Quadros-Ragar • February 6, 2025
On January 29, 2025, President Trump signed the Laken Riley Act into law, significantly altering how immigration policies are enforced in the United States. This legislation grants State attorneys general and other authorized officials unprecedented authority to interpret and implement federal immigration policies. It also empowers them to take legal action against the federal government if they believe federal immigration enforcement negatively impacts their state. With this new authority, states now play a direct role in shaping immigration outcomes—a responsibility traditionally held by the federal government. One of the most immediate effects of the Laken Riley Act is that it allows states to seek injunctive relief to block the issuance of visas to nationals of countries that refuse or unreasonably delay the acceptance of their citizens who have been ordered removed from the United States . This means that if a country does not cooperate with U.S. deportation efforts, its nationals—regardless of their legal status—could face significant difficulties obtaining or renewing visas. As a result, foreign nationals from these countries may encounter increased uncertainty when traveling internationally or securing work authorization in the U.S. Beyond visa processing, the law introduces a new level of unpredictability into the immigration system. By allowing state attorneys general to intervene in federal procedures, and immigration policies that may now vary based on state-level decisions. In the coming months, it remains to be seen how individual states will wield this power—whether they will actively seek to block visa issuance or push for broader immigration enforcement measures. For foreign nationals and employers, staying informed about which countries are deemed “uncooperative” is now more important than ever. Those needing visa renewals or planning international travel should prepare for potential delays and seek professional guidance to navigate these uncertainties. The Laken Riley Act also mandates federal immigration authorities to detain and deport individuals without legal status who are charged with certain offenses, including minor theft or shoplifting, assaulting a law enforcement officer, and crimes resulting in death or serious bodily injury. This provision underscores a stricter approach to immigration enforcement, affecting individuals accused of both minor and serious offenses. With immigration policies now subject to a new layer of state involvement, it is more important than ever to stay informed and prepared for potential challenges. If you have concerns about how the Laken Riley Act may affect your immigration status or business, contact Santos Lloyd Law Firm for strategic counsel tailored to your needs.

Understanding the January 28, 2025, Vacatur Memo on Venezuela TPS

By Angelica Rice • January 31, 2025
On January 28, 2025, Secretary of Homeland Security Kristi Noem vacated the January 10, 2025, decision by former Secretary Alejandro Mayorkas that had extended the 2023 designation of Temporary Protected Status (TPS) for Venezuela and ordered that his January 17, 2025, notice re-designating Venezuela TPS be vacated. This action has understandably caused confusion and concern among Venezuelan TPS beneficiaries and those with pending applications. It is critical to clarify that this does not mean that the TPS program for Venezuela has been eliminated . Instead, the Department of Homeland Security (DHS) must now reconsider whether to re-designate (extend) or terminate the previous Venezuela TPS designations from 2021 and 2023. What Does the Vacatur Mean? Because the January 17, 2025, TPS extension was vacated, the most recent valid TPS designation for Venezuela remains the October 3, 2023, designation . The vacatur does not immediately affect TPS protections for individuals covered under the prior designations. However, DHS must make key decisions in the coming months: By February 1, 2025 , DHS must decide whether to extend or terminate the October 3, 2023, designation . By July 12, 2025 , DHS must decide whether to extend or terminate the March 9, 2021, designation . If the Secretary does not make a timely determination (for example, if the Secretary were not to make determination by February 1, 2025 whether to extend or terminate the 2023 Venezuela TPS designation), then the statute provides for an automatic extension of the designation for an additional period of 6 months . INA 244(b)(3)(C), 8 U.S.C. 1254a(b)(3)(C). Until these decisions are made, TPS remains in effect under the previous designations , and those who have already been granted TPS are not immediately impacted. Who Is Affected and What Should You Do? Current TPS Holders If you were already granted TPS under the March 9, 2021, or October 3, 2023, designations, your status remains valid. You must continue to comply with all re-registration requirements to maintain your protection and work authorization. Re-registration period: TPS beneficiaries under the 2021 and 2023 designations must re-register between January 17, 2025, and September 10, 2025 , to maintain their legal status and work authorization. Individuals with Pending TPS Applications as of January 17, 2025 If you applied for TPS before January 17, 2025 , under a previous designation, your application will continue to be processed . If your application is approved, your TPS protection will remain valid at least until April 2, 2025 . There is no need to reapply. Individuals Who Applied for TPS Between January 10, 2025, and January 28, 2025 If you applied for TPS during this period, USCIS will cease processing your applications and issue refunds of any fees paid in association with those applications . Additionally, USCIS will invalidate EADs; Forms 1-797, Notice of Action (Approval Notice); and Forms 1-94, Arrival/Departure Record (collectively known as TPS-related documentation) that have been issued with October 2, 2026 expiration dates under the January 17, 2025 Mayorkas Notice. What Happens Next? Given the Biden administration’s prior support for TPS, many expect DHS to extend or re-designate Venezuela for TPS rather than terminate it . However, no final decision has been made , and Venezuelan nationals with TPS or pending applications should continue to follow updates closely. What Should You Do Now? If you currently hold TPS , continue to comply with all TPS renewal requirements and remain aware of DHS’s upcoming decisions. If you have a pending application , check USCIS updates regularly and consult with an immigration attorney for the latest guidance.  If you applied between January 17, 2025, and January 28, 2025 , seek legal counsel to understand how the vacatur may affect your application. Stay Informed and Get Legal Guidance Our immigration firm is closely following these developments and will provide updates as soon as DHS makes its decision. If you have questions about your TPS status or how this memo affects your case, contact our office today for a consultation. For more information, refer to the official DHS notice on the vacatur: Vacatur of 2025 Temporary Protected Status Decision for Venezuela .
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