Are H-1B visa services affected by the US government shutdown? US embassy clarifies
During the US government shutdown, the US Embassy in India clarified that passport and visa services, including H-1B processing, will continue as circumstances allow. Past shutdowns, however, have resulted in delays and reduced processing of non-essential applications.
Amid the US government shutdown, the US Embassy in India has clarified that passport and visa services, including H-1B processing, will continue as circumstances permit. The federal government shutdown began on Wednesday after President Donald Trump and Democratic leaders failed to reach a funding agreement.
The embassy clarified that scheduled passport and visa services both within the United States and at US embassies and consulates abroad will continue as circumstances allow.
Also Read: US Government Shutdown LIVE: White House warns of ‘imminent’ federal layoffs amid funding stand-off
Here's what US Embassy said:
In a post X, the US Embassy said, “At this time, scheduled passport and visa services in the United States and at U.S. Embassies and Consulates overseas will continue during the lapse in appropriations as the situation permits. We will not update this account until full operations resume, with the exception of urgent safety and security information. For information on our services and operating status, visit http://travel.state.gov.”
While essential consular services remain active, experts caution that reduced staffing and fee-based operations may lead to delays or limited hours, especially for non-urgent applications.
The current US government shutdown is the first in nearly seven years, with the last partial shutdown occurring during Donald Trump’s first term in 2018.
As before, “excepted” federal employees must work without pay to maintain critical services.
The federal government halts all "non-essential" operations during a government shutdown. This leads to noticeable disruptions in several areas, including delays or reductions in visa and passport services, the closure or limited functioning of federal agencies such as NASA and the Department of Education, and restricted access to national parks and monuments. Essential services, such as those related to public safety and national security, continue to operate, but often without immediate pay for employees.
Despite agreeing to attend a meeting on Monday with key congressional leaders, including Senate Majority Leader John Thune (R-SD), House Speaker Mike Johnson (R-La), House Democratic Leader Hakeem Jeffries (D-NY), and Senator Chuck Schumer, Trump has so far shown little willingness to engage with Democrats' demands on health care funding.
What about visas?
While some government services continue during a shutdown if funded by user fees, others may face cutbacks. The US Embassy in India has stated that consular services will remain operational during the lapse in congressional appropriations.
However, not all functions are guaranteed to run smoothly.
Although the embassy reaffirmed that passport and visa services “will continue … as the situation permits,” that wording signals potential limitations. Reduced staffing or reliance on collected fees may lead to slower processing times, shortened operating hours, or the suspension of non-urgent applications—patterns seen in past shutdowns.
China announces ‘K visa’
China on Wednesday launched a new visa programme designed to attract foreign talent in science and technology, as part of its broader strategy to surpass the United States in key innovation sectors.
According to Chinese state media, the new ‘K visa’ was announced in August and streamlines the immigration process for qualified individuals. The move highlights a stark contrast with recent US policy, where the Trump administration has imposed sudden and costly changes to skilled worker visas, raising barriers for foreign professionals.
“Against the backdrop of some countries retracting, turning inward, and sidelining international talent, China has keenly seized this important opportunity and promptly introduced this policy,” state newspaper People's Daily said in a comment piece on Tuesday.
What makes K visas different?
In contrast to many other visa categories, the ‘K visa’ does not require a domestic employer or entity to issue an invitation to the applicant, as reported by AFP.
“K visas will offer more convenience to holders in terms of the number of permitted entries, validity period and duration of stay,” state news agency Xinhua reported in August.
The official description for those able to apply is “young foreign scientific and technological talents,” but the exact age, educational background and work experience requirements needed are as yet unclear. Xinhua said visa holders will be able to “engage in exchanges in fields such as education, culture, and science and technology, as well as relevant entrepreneurial and business activities.”
Across the Atlantic, the US tech industry has been rattled by unexpected changes made by the Trump administration to the H-1B visa procedure. H-1Bs allow companies to sponsor foreign workers with specialised skills - such as scientists, engineers, and computer programmers - to work in the United States for three years, with a possible extension to six.
Such visas are widely used by the tech industry, but the new H-1B visa policy now requires a one-time $100,000 fee.
The People's Daily article on Tuesday rebutted what it called "strange rumours" that the new visa would create "immigration problems" in China. "The so-called "immigration crisis" will not materialise, we should have cultural confidence," it said.
H-1B visa
India remained the top recipient of remittances at USD 118.7 billion in FY24, with about 23% of it coming from the US. The visa fee hike is likely to reduce both the inflows and the share of the US over the medium term.
Between October 2023 and September 2024, total H-1B visas issued for four IT companies, which account for 50% of the industry revenue, stood at 34,507. Over 35% were for initial employment and 65% for continuing employment. The share of initial employment is expected to decline over the medium term, it said.
Visa expenses come at 0.02-0.05% of the total employee cost, with H-1B visa fees ranging between $2,000 and $5,000 per person, it said.
Over a third of the approved H-1B applications from October 2023 to September 2024 were for initial employment, and if this share remains constant next fiscal year, the new fee structure could raise visa costs to 1% of total employee costs. If the share is reduced, visa-related costs are expected to remain 0.3-0.6% of total employee costs.
Tier-1 IT companies such as TCS, Infosys, Wipro and HCL generate 96% of their revenue from the international markets, with the US alone accounting for 53%.
(With inputs from agencies)
- H-1B visa services will persist during the shutdown, but expect potential delays.
- Rising visa costs could impact employment dynamics for tech companies.
- The US faces competition from countries like China in attracting skilled talent.