Immigration Watch: Updates as of October 10, 2025

U.S. immigration policy continues to evolve rapidly, with major developments affecting federal agencies, employment-based visas, and DACA recipients. This week’s immigration update covers what happens to immigration agencies during a government shutdown, the latest lawsuit challenging the new H-1B visa fee, and the potential reopening of DACA applications.

Below is a comprehensive breakdown of what individuals, employers, and foreign nationals need to know.

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What Happens to Immigration Agencies During a Government Shutdown?

The United States is currently experiencing a government shutdown. While some immigration agencies remain operational due to alternative funding structures, others face significant service disruptions.

Because immigration services are spread across multiple federal agencies, the impact varies depending on how each agency is funded.

Immigration and Customs Enforcement (ICE)

Immigration and Customs Enforcement is considered an essential law enforcement agency. Most ICE operations continue during a shutdown, including enforcement and detention activities.

However, the Office of Detention Oversight, which inspects detention facilities to ensure compliance with federal safety and humanitarian standards, is not considered essential and may be suspended.

In 2022, ICE estimated that approximately 17 percent of its workforce could be furloughed during a shutdown, though current projections suggest the number may be lower.

Recent funding legislation, including the One Big Beautiful Bill passed in July, allocated $75 billion to ICE over four years. This includes:

• $29.9 billion for enforcement
• $5 billion for detention operations

This funding allows ICE to continue and potentially expand operations during the shutdown.

The Student and Exchange Visitor Information System (SEVIS), which tracks international students through the Student and Exchange Visitor Program (SEVP), remains operational because it is funded largely through user fees rather than congressional appropriations.

U.S. Citizenship and Immigration Services (USCIS)

USCIS primarily operates on application filing fees paid by immigrants, employers, and petitioning family members. As a result, the agency remains largely functional during a shutdown.

In 2022, USCIS estimated that approximately 1 percent of its workforce would be furloughed.

Most services continue without interruption, including:

• Form I-130 and I-485 processing
• Naturalization ceremonies
• Biometrics appointments
• Work authorization processing

However, certain USCIS programs that depend on congressional appropriations are impacted.

For example:

• E-Verify was suspended from October 1 to October 7 during the shutdown.
• The Conrad Waiver 30 Program has been suspended for new applications. This program allows certain J-1 physicians to waive the two-year home residency requirement in exchange for service in underserved U.S. areas.

U.S. Customs and Border Protection (CBP)

Customs and Border Protection is also considered essential. Officers remain on duty, and inspection and enforcement operations continue.

In prior shutdowns, approximately 8 percent of CBP employees were furloughed.

Travelers and businesses may experience delays, particularly for:

• Inspection of shipments involving federal partner agencies
• Adjudication of border-filed L-1 and TN petitions

CBP also received funding under recent legislation, including:

• $7.8 billion for hiring and vehicle procurement
• $6.2 billion for border technology
• $2.1 billion for border processing

U.S. Department of State and Consulates

The Department of State handles visa adjudications at U.S. consulates and embassies abroad.

Because many visa services are fee-funded, most appointments continue during a shutdown. However:

• Staffing may be reduced
• Wait times may increase
• Appointment availability may be limited

If the shutdown continues long-term, visa processing could be halted unless emergency exceptions are made.

U.S. Department of Labor (DOL)

The Department of Labor is significantly impacted during a government shutdown.

The Office of Foreign Labor Certification suspends:

• Labor Condition Application (LCA) processing
• PERM labor certification applications
• Prevailing wage determinations

The Foreign Labor Access Gateway (FLAG) system is disabled during shutdown periods.

This directly affects employers filing:

• H-1B
• H-1B1
• E-3
• PERM-based green card cases

Until DOL operations resume, cases requiring DOL certification cannot move forward.

U.S. Department of Justice and Immigration Courts

The Executive Office for Immigration Review (EOIR), which oversees immigration courts, is fully funded by congressional appropriations.

During a government shutdown:

• Non-detained immigration court hearings are typically suspended
• Detained hearings generally proceed as scheduled

This can further increase the existing immigration court backlog.

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Update on H-1B Visa Policy: Lawsuit Challenging $100,000 Fee

In a previous update, we discussed a presidential proclamation requiring individuals entering or reentering the United States in H-1B status to pay a new $100,000 fee.

Current H-1B filing fees typically range between $2,000 and $5,000. The proposed increase represents a dramatic financial shift for employers.

On October 3, a coalition of healthcare organizations, labor unions, academic institutions, religious groups, and individual petitioners filed a lawsuit in the Northern District of California.

The lawsuit argues:

• The fee exceeds presidential authority
• The policy was implemented without proper regulatory procedures
• The increase disproportionately affects essential sectors

More than one-third of H-1B workers serve in essential roles, including nurses, physicians, teachers, clergy, and researchers.

Key unanswered questions include:

• How will pending H-1B petitions be treated?
• Will filing fees be reimbursed if petitions are denied?
• Are cap-exempt employers subject to the new fee?
• Does the fee apply to H-4 dependents?
• How will payment be processed and verified at ports of entry?
• Will change of status and extension of stay applications require payment?

Litigation is ongoing, and further legal challenges are expected.

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Potential Reopening of DACA Applications in 2025

The Deferred Action for Childhood Arrivals (DACA) program provides temporary protection from deportation, work authorization, and access to Social Security numbers for qualifying individuals.

Since 2021, new DACA applications have been blocked by a federal court in Texas.

In a recent filing, the Department of Justice proposed resuming the processing of renewal applications after a four-year freeze. This proposal requires court approval and is not yet final.

If approved, it could mark a significant development for DACA recipients nationwide.

DACA Eligibility Requirements

To qualify for DACA, applicants must:

• Have been under age 31 as of June 15, 2012
• Have arrived in the United States before age 16
• Have continuously resided in the U.S. since June 15, 2007
• Have been physically present in the U.S. since June 15, 2012
• Have had no lawful immigration status on June 15, 2012
• Be currently enrolled in school, have graduated, obtained a GED, or be an honorably discharged U.S. veteran
• Have no significant criminal record

While not finalized, the potential reopening signals renewed legal debate over the program’s future.

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Conclusion: Staying Informed During Rapid Immigration Changes

From government shutdown impacts on immigration agencies to major changes in H-1B visa policy and potential DACA reopening, immigration law remains in flux.

Employers, foreign nationals, students, and families should monitor developments closely, as delays, policy shifts, and court decisions may significantly affect timelines and eligibility.

I will continue tracking updates from the Department of Homeland Security, the Department of Labor, USCIS, and federal courts.

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If you have questions about how these policy changes may affect you or your organization, contact our office for guidance tailored to your situation. To read more about what I’ve written about today and more, you can subscribe to my bi-weekly LinkedIn newsletter, Immigration Watch.