H-1B Extensions After LCA Expiration During a Government Shutdown

A federal funding lapse that started on October 1, 2025, has frozen a critical step in the H-1B pipeline and put thousands of skilled workers and their employers in limbo. With The Department of Labor’s FLAG system offline during the government shutdown, employers cannot secure the certified Labor Condition Application (LCA) that must accompany every H-1B filing. Without a valid LCA, companies cannot file extensions, transfers, or many changes of status for existing H-1B employees—even when those workers’ authorized stay is approaching its end date.

The impact is immediate and far-reaching. Engineers, healthcare professionals, researchers, and IT staff across the United States face the risk of status gaps, while human resources teams and immigration counsel are unable to file on time through no fault of their own.

How the shutdown disrupts the H-1B filing sequence

The Department of Labor’s electronic platform is the single gateway for LCA certification, and the shutdown’s disruption has rippled out to anyone whose expiring status requires fast, predictable filings.

Normally:

1. Employer prepares and submits a new Labor Condition Application (LCA) via FLAG.
2. Employer waits for LCA certification.
3. Employer files a timely H-1B extension using Form I-129 with USCIS.

During the shutdown, that sequence breaks at step one. Because the LCA is a statutory prerequisite, employers cannot complete the H-1B package or even start the filing clock with USCIS. This stoppage is not theoretical; it has already pushed otherwise straightforward extensions past internal company timelines and hard legal deadlines tied to employees’ I-94 records.

For workers whose LCAs expired during the shutdown, the problem becomes a catch-22: they need an extension to keep working, but they cannot file the extension because the LCA cannot be obtained while the government is partially closed.

USCIS guidance: “extraordinary circumstance” flexibility

USCIS has signaled an important, if narrow, safety valve. The agency confirmed it will treat the shutdown as an “extraordinary circumstance beyond the petitioner’s control” when deciding whether to excuse a late extension of stay or change of status filing.

Key points about this flexibility:

• It mirrors long-standing policy allowing USCIS to excuse certain late filings caused by factors outside the petitioner’s or applicant’s control.
• An H-1B extension filed after the status expiration date may be accepted and adjudicated on the merits if the employer shows the shutdown-driven LCA bottleneck was the primary reason for the delay.
• Officers will consider requests case by case; the burden is on the filer to prove the chain of events that made timely submission impossible.

According to analysis by VisaVerge.com, USCIS will expect clear, contemporaneous proof that the LCA could not be filed or certified because the FLAG system was unavailable during the shutdown window and that the employer moved promptly once systems resumed.

Practical takeaway: USCIS’s approach gives breathing room to employers blocked by the LCA dead end, but the relief is not automatic. Each late filing will be reviewed individually.

Evidence USCIS is likely to want

Employers and workers who rely on this flexibility should document the shutdown’s impact thoroughly. Useful evidence includes:

• Copies of error messages or system notices about the FLAG outage
• Internal emails showing attempted filing dates and approvals ready to go
• Declarations from HR, counsel, or staff explaining how the shutdown prevented submission
• Contemporaneous logs of attempts to access the FLAG portal and screenshots of outage notices
• HR records showing imminent I-94 expiration dates and planned filing timelines

Workers should keep personal records of timelines and communications, especially if their H-1B status expiration date came and went while their employer waited on the LCA path to reopen.

Important limit: the 60-day grace period still runs

A separate rule continues unaffected by the shutdown: the 60-day grace period does not pause. For H-1B workers who are laid off or whose H-1B employment ends, the grace period:

• Starts the day after termination, and
• Lasts up to 60 consecutive days or until the I-94 end date, whichever comes first.

The shutdown does not stop this countdown. That means someone who lost their job near the start of October cannot bank extra time because the LCA system is offline. If the grace period expires before a new filing is accepted by USCIS, the worker may fall out of status, complicating departures, re-entry, and future immigration benefits.

On-the-ground effects and employer responses

Time is the most urgent pressure point. Employers who planned to file H-1B extensions weeks in advance now confront a locked gateway despite perfect preparation. Common employer actions include:

• Mapping I-94 end dates and identifying employees with LCAs expiring during the shutdown
• Triaging cases where a status lapse would cause immediate harm (e.g., healthcare workers on COVID-related projects, critical manufacturing roles, research staff on grants)
• Drafting detailed cover letters for late filings that lay out day-by-day timelines and show preparatory steps completed before the shutdown
• Building dual-track strategies: prepare a complete H-1B extension to file once the LCA is available, while preserving workers’ lawful presence via temporary change-of-status filings where appropriate
• Searching for pre-certified LCAs within the organization that might validly support a new filing (subject to strict fit with role, wage level, and location)

Legal counsel must assess any pre-certified LCA carefully. If it aligns with regulatory requirements, it can offer a temporary workaround, but the window for these strategies is narrow.

Alternatives workers may use during the shutdown

Some workers are pivoting to alternate statuses to remain lawfully present:

• File a change of status to B-2 (visitor) or F-1 (student) using Form I-539.
• B-2 preserves lawful presence but does not allow employment.
• F-1 requires acceptance into a bona fide academic program and SEVIS compliance.

Tradeoffs exist, and these options should be pursued with counsel. Employers sometimes prepare an H-1B petition ready to file immediately when the LCA system reopens and then request premium processing if available.

Post-shutdown challenges: backlog and surge

When the shutdown ends:

• Employers will rush to submit backlogged LCAs, likely slowing certification timelines even after systems return.
• USCIS processing centers may receive a surge of H-1B extension packages; triage inside corporate immigration functions and law firms is likely.
• USCIS continues to adjudicate properly filed H-1B petitions that were submitted before the shutdown, but that offers little comfort to those who could not file at all because the LCA gateway was closed.

Immigration attorneys warn that USCIS’s willingness to excuse late filings is not a guarantee of approval or retroactive status. Officers can:

• Excuse a late submission and still deny the case on other grounds, or
• Approve the extension but start the new validity period on the date of approval rather than retroactively bridging a gap.

These distinctions affect payroll, back pay, benefits continuity, and I-9 records, so HR, legal, and managers must coordinate closely when approvals arrive.

Practical guidance for workers and employers

Recommended steps while the shutdown continues:

• Document everything: outage screenshots, internal approvals, planned filing timelines.
• Prepare complete Form I-129 H-1B packages so they can be filed instantly when LCA certification resumes.
• Consider temporary change-of-status filings (Form I-539) where appropriate and timely.
• Identify any pre-certified LCAs that may validly apply and consult counsel before using them.
• Keep employees informed about timelines, risks, and contingency plans.
• For those traveling, weigh the risks: many choose to stay in the U.S. until status is secure.

Family and personal impacts

H-4 spouses depend on the principal H-1B’s status for their own extensions and for some to maintain employment authorization. The shutdown’s uncertainty forces families to make difficult decisions about schooling, travel, medical care, and work. Travel becomes especially fraught as I-94 end dates approach and late filings hinge on USCIS discretion.

Official resources and next steps

For those preparing filings or contingency plans, consult official USCIS guidance:

• USCIS Policy Manual on extensions and changes of status: https://www.uscis.gov/policy-manual/volume-2-part-b-chapter-2
• Form I-129 information: https://www.uscis.gov/i-129
• Form I-539 information: https://www.uscis.gov/i-539

Ensure forms are complete and accurate when the LCA is available, and support any companion Form I-539 requests for dependents with appropriate documentation.

Final summary and lessons learned

• The LCA outage caused by the shutdown has created a bottleneck that prevents otherwise routine H-1B extensions and changes of status.
• USCIS may excuse late filings as an extraordinary circumstance, but each case is judged on its facts and requires strong contemporaneous evidence.
• The 60-day grace period continues to run despite the shutdown and is not paused by USCIS’s extraordinary-circumstances flexibility.
• Employers should prepare evidence now, assemble filings for immediate submission once FLAG reopens, and consider temporary status changes for affected workers when appropriate.
• The shutdown highlights a fragile point in the H-1B process: one frozen system can halt the entire extension chain. Resilience requires advance planning—tracking I-94 and LCA end dates, maintaining compliant job descriptions, and keeping contingency plans ready.