US Shutdown Halts H-1B and Green Card Processing: Why Indian Professionals Face the Harshest Impact

—

by

Himanshu
in

The United States government shutdown of October 2025 has created massive disruptions across multiple sectors, but one of the hardest-hit areas is immigration and work visa processing. For thousands of Indian professionals working in America or aspiring to move there, the suspension of H-1B visa and employment-based green card processing has brought careers, family plans, and dreams to an abrupt halt.

This blog takes a comprehensive look at what the shutdown means for visa holders, why Indian professionals are disproportionately impacted, and what possible solutions might emerge once the government resumes operations.

Why the Shutdown Stalled Visa Processing

To understand the visa freeze, it’s important to recognize how U.S. immigration functions:

  1. Department of Labor (DOL) Role
    • The DOL is responsible for approving the Labour Condition Application (LCA), which employers must secure before filing H-1B petitions.
    • It also manages PERM certifications, a critical step in the employment-based green card process.
    • With the shutdown, the DOL has stopped these services entirely.
  2. USCIS Operations
    • The U.S. Citizenship and Immigration Services (USCIS) is primarily funded through filing fees, not congressional budgets.
    • Some USCIS services may continue, but without DOL’s preliminary approvals, many cases cannot move forward.
  3. Consular Delays
    • U.S. embassies and consulates often rely on fee funding too, but if supporting paperwork from DOL is missing, applicants will face inevitable delays.

In short: if your application required new DOL approval after October 1, it is now frozen until further notice.

Why Indian Professionals Are Hit the Hardest

The freeze impacts all applicants, but Indian professionals face the biggest blow for several reasons:

  • Majority Stake in H-1B Visas
    Over 70% of H-1B visas are issued to Indian nationals, primarily in IT, tech, and consulting sectors. With this overwhelming representation, any disruption disproportionately hurts Indian applicants.
  • Employer Transfers and Career Moves
    Indian workers often change employers, projects, or roles, requiring new LCAs. With the DOL shut down, these transitions cannot proceed.
  • Green Card Backlogs
    Indians already face some of the longest wait times in the world for employment-based green cards due to per-country limits. This pause adds another layer of backlog.
  • Few Alternative Pathways
    Unlike applicants from other countries, Indian professionals rely almost exclusively on the H-1B and employment-based green card route for long-term residency in the U.S.

Categories of Applicants Impacted

The shutdown has not affected everyone equally. Below is a breakdown of who is most and least affected:

CategoryImpact LevelReason
New H-1B ApplicantsSevereLCAs cannot be filed or approved by DOL
Employer Transfers / Job ChangesSevereNew petitions need fresh LCAs
Green Card PERM ApplicantsSeverePERM certifications halted
Existing Approved LCAsModerateMay still proceed through USCIS
USCIS-Only CasesLowUSCIS runs on fee funding and may continue limited processing

The Ripple Effect on Indian Families

The freeze doesn’t just affect professionals; it affects entire families:

  • Dependents on H-4 visas may face status uncertainty.
  • Children on dependent visas risk falling out of status if delays drag on.
  • Spouses awaiting employment authorization through green card steps may find themselves unable to work.

For many, this shutdown has turned into a deeply personal crisis, threatening financial stability, education timelines, and even housing security.

Short-Term Risks

  1. Job Losses
    Employers may retract offers if employees cannot join on time.
  2. Legal Status Risks
    Workers nearing visa expiry may fall out of status without extensions.
  3. Project Delays
    U.S. companies relying on Indian talent could face business disruptions.

Long-Term Concerns

  • Backlog Worsening: When operations resume, applications will flood the system, creating massive delays.
  • Increased Competition: Applicants may face tougher competition for limited slots when processes reopen.
  • Policy Shifts: Shutdowns often trigger policy reviews, meaning rules for H-1B or green cards may change.

Coping Strategies for Professionals

Though the situation is frustrating, professionals can take certain steps:

  • Check Status of Existing Filings: If your LCA or PERM is already approved, proceed with USCIS filings promptly.
  • Stay Document-Ready: Keep all paperwork, job offers, and supporting documents in order for quick submission when services resume.
  • Consult Immigration Experts: Attorneys can provide case-specific guidance and identify alternative pathways where possible.
  • Explore Remote Work Options: For short-term disruptions, some employers may allow remote work from India.
  • Monitor Updates Closely: Stay tuned to official updates on when operations may restart.

Potential Outcomes

How the crisis unfolds depends on how quickly Congress resolves the shutdown. Here are possible scenarios:

OutcomeImpact on Applicants
Quick ResolutionProcessing resumes with minimal backlog
Prolonged ShutdownSevere backlog, job losses, extended delays
Shutdown + Policy ReformChanges in visa rules, possibly stricter guidelines
Temporary WorkaroundsLimited relief, only for certain cases

Broader Implications for India and the U.S.

  • India: With such a large diaspora, the freeze impacts remittances, family reunification, and international career prospects.
  • U.S.: American companies depending on skilled Indian workers face project slowdowns, cost increases, and talent shortages.
  • Global Market: Countries like Canada, the UK, and Australia may benefit, as frustrated professionals shift applications elsewhere.

Conclusion

The U.S. government shutdown of October 2025 has frozen a vital lifeline for Indian professionals — the H-1B and employment-based green card system. For many, this is not just an administrative pause but a direct threat to careers, stability, and family futures.

While some cases may still proceed, the majority of new applicants and green card hopefuls will have to wait, compounding already long delays. The situation underscores the need for more resilient immigration systems and highlights just how vulnerable foreign professionals are to political deadlocks.

For now, Indian professionals can only prepare, stay informed, and hope for a swift resolution — because every passing day adds uncertainty to their American dream.

Disclaimer

This article is intended for informational purposes only. It reflects publicly available updates as of October 2025 and should not be considered legal or immigration advice. Immigration laws and procedures can change rapidly, and individuals are advised to consult qualified professionals for guidance on their specific cases.