The federal government officially shut down on Oct. 1 after Congress failed to pass a budget on time. While some agencies will keep running because they are funded by user fees, others are grinding to a halt without appropriations. But one area facing immediate disruption is immigration. The effects of the shutdown will ripple nationwide but will especially be felt in New York, home to one of the largest immigrant populations in the country and thousands of ongoing immigration cases.
What happens in a U.S. government shutdown?
When Congress doesn’t pass the spending bills needed to fund government operations, many federal agencies are forced to stop or reduce their work. Non-essential programs stop and thousands of federal workers are furloughed (sent home without pay). Essential services such as Social Security, the military, air traffic control and border security continue to operate, but often without pay until federal funding is restored.
How will labor be affected during the shutdown?
During the shutdown, the Department of Labor (DOL) halts its role in employment-based immigration cases. Among other changes, that means:
- The Labor Condition Applications (LCAs), prevailing wage determinations and permanent labor certifications (PERM) are not processed.
- The Foreign Labor Application Gateway (FLAG) system goes offline.
- Because the U.S. Citizenship and Immigration Services (USCIS) decisions often depend on DOL certifications, many petitions stall even if USCIS remains funded.
Is E-verify also affected?
Yes. E-Verify, the electronic verification system that employers use to check work eligibility is suspended during a shutdown. That means employers in states that require E-Verify must use alternate I-9 document review procedures.
Are immigration courts still operating?
Yes, detained and non-detained cases (those involving people not in custody) are continuing.
As of the end of August 2025, there was a national backlog of 3,432,519 pending cases before the Immigration Court and 2025, 2,271,857 asylum applicants were awaiting hearings or decisions.
What about border enforcement?
Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) staff continue to perform essential national security duties, border inspection, and enforcement tasks, meaning that most of their staff and operations are retained and active during a shutdown.
Will visas and passports still be processed?
Because the Department of State and consular operations depend in part on fee revenues from visa and passport services, these offices may continue working, at least in the short term. But if the shutdown lasts for an extended period of time, consulates or domestic passport offices might slow down or limit their services.
In a press release, The Legal Aid Society estimates that most applications submitted to USCIS will be paused. According to the American Immigration Council, since State Department visa processing and consular services are funded mainly by fees, they typically continue to operate during government shutdowns.
How will services like Social Security and SNAP be affected?
The Legal Aid Society states that benefits such as Social Security, Medicaid, Cash Assistance, SNAP (Food Stamps), FHEPS, CityFHEPS, and Section 8 will remain unaffected through at least October. New Yorkers will continue to receive these benefits without interruption.
How are immigrants in New York affected?
The immigrant population in New York may see immediate impacts of the shut down including postponed court hearings, limited legal aid and travel complications. More specifically, that might take the form of:
Backlog increases in employment-based cases
For immigrants in New York applying for visas or green cards that require a DOL certification (common in H-1B, EB-2, EB-3 categories), the shutdown will put a stop to those services and petitions may linger in limbo. New York employers hiring foreign nationals could also face delays or temporary hiring freezes.
Asylum and court cases stall
Non-detained immigration court hearings in New York could be postponed. Immigrants waiting for hearings may receive new notices months later. The detained docket for people in custody is more likely to proceed.
Strain on legal service providers
In New York, nonprofit legal aid organizations and immigrant rights groups often rely on federal grants or contracts. However, city and state programs may fill some gaps. New York City and New York State provide immigrant legal aid, health services and “Know Your Rights” clinics. These programs may soften the shutdown’s impact but could face increased demand and limited budgets.
New York State allocated $64.2 million for immigration legal services in fiscal year 2026, while New York City programmed more than $74 million for citywide immigrant legal support.
Travel complications
Immigrants in New York who need to travel abroad may also be affected if their return depends on obtaining a new visa stamp, as consulates are operating at reduced capacity.
Immigration court fallout
Courts in New York may need to reschedule cases, which will in turn extend wait times for asylum seekers and those pursuing appeals or extensions.
Update October 9, 2025: This article has been updated to state that immigration court hearings for non-detained cases are still continuing.
