

The shutdown came after President Donald Trump’s Republicans and the opposition Democrats were unable to agree on a congressional budget bill that would fund the government. This marks the first shutdown in nearly seven years.
H-1B and Green Card Processing May Be Delayed
New Delhi: The US government shutdown that commenced on October 1 will significantly impact Indian professionals, particularly those on H-1B visas and in the green card pipeline. The shutdown came after President Donald Trump’s Republicans and the opposition Democrats were unable to agree on a congressional budget bill that would fund the government.
Due to the shutdown, the Department of Labour (DOL), which is essential to the H-1B visa application process, has suspended operations. The Labour Condition Applications (LCAs) and prevailing wage determinations that are necessary for new H-1B petitions and some green card applications are no longer being filed as a result of this cessation.
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As a result, employers are unable to file employment-based green card applications that require these certifications or start new H-1B petitions.
The shutdown adds to the delays already experienced by Indian professionals awaiting approval of their green cards. The time frame for acquiring a green card is further prolonged by the DOL's suspension of prevailing wage determinations and PERM labour certifications.
Those who rely on the provisions of the American Competitiveness in the 21st Century Act (AC21), which permit holders of H-1B visas to stay past the six-year limit if their green card application has been pending for at least 365 days, should be especially concerned about this situation.
This shutdown is after nearly 7 years.
These people might be in doubt about their employment and legal status in the United States if they lack the required certifications.
The shutdown's effects are compounded by recent policy changes, including the imposition of a one-time $100,000 fee on future H-1B visa applications. This fee, announced by the Trump administration, has raised concerns among Indian IT companies that rely heavily on the H-1B program.
The fee could deter US firms from hiring Indian talent, potentially impacting service exports and remittance inflows from the U.S. to India.
Trump, in a pre-shutdown warning stated that some actions taken during the funding lapse could be “irreversible” and directed at programs favored by Democrats. Trump stated that the shutdown could result in “cutting vast numbers of people out, eliminating programs they like, and removing services they depend on.
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However Republicans insisted they would not alter the legislation, describing it as a streamlined, “clean” bill. Senate Majority Leader John Thune noted, “We can reopen it tomorrow” if enough Democrats break party lines.
The previous government shutdown took place during Trump’s first term, from December 2018 to January 2019, when he demanded funding for a US-Mexico border wall. That 35-day shutdown remains the longest in US history, causing major disruptions for federal employees and airport operations.