(UNITED STATES) A federal judge on December 17, 2025 blocked the Trump administration from carrying out hundreds of layoffs ordered during and after the 43-day government shutdown. The decision immediately steadied staffing at agencies whose work ripples into immigration, visa interviews and the hiring of foreign workers.
U.S. District Judge Susan Illston issued a preliminary injunction that would “block roughly 400 layoffs” and required agencies to bring back “nearly 300 employees already terminated,” according to reporting on the ruling. The order applies to personnel actions at the State Department, the Department of Defense, the General Services Administration and the Small Business Administration, among others. It rests on a new “Shutdown Law” — a continuing resolution passed by Congress last month to reopen government.
Legal basis and immediate effects
Illston said the planned reductions likely violated language in that funding measure that “specifically bars agencies from implementing layoffs through January 30, 2026,” a window lawmakers built to stabilize operations after the funding lapse. The injunction directs agencies to pause planned workforce cuts through that date and to reinstate workers already let go during the shutdown.
Although the ruling does not change immigration law or visa eligibility, it may keep the administrative machinery from losing more people at a fragile moment. Restoring headcount at the State Department — where consular sections rely on trained officers and support staff — can help posts work through appointment backlogs and reschedule interviews canceled during the lapse. Still, rehiring and redeploying staff takes time; applicants should not expect an overnight fix.
Key deadline: the injunction preserves the Shutdown Law’s layoff bar through January 30, 2026.
How the staffing cuts affected immigration processes
The case highlights how many visa outcomes depend on agencies not usually associated with immigration adjudication. During the shutdown, several choke points developed:
- Department of Labor (DOL): Its certifications are required before many employers can file immigration paperwork. The shutdown halted or slowed:
- Labor Condition Applications (LCAs) — required before submitting H-1B petitions for specialty workers.
- PERM labor certifications — central to many employment-based green card cases (EB-2, EB-3).
- U.S. Citizenship and Immigration Services (USCIS): Although USCIS can often work off filing fees, other linked steps stalled when supporting agencies were closed.
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Consular posts abroad: Reduced staffing shrank interview calendars, affecting both new visas and renewals.
Practical result: companies sometimes had complete petitions but could not move forward because they lacked the Labor Department’s certified paperwork. Reopening operations requires files to be reopened, staff reassigned, and oldest cases addressed first, so restarts are rarely instant.
Who was harmed and how
For foreign professionals, the bottleneck translated into anxiety about start dates, paychecks and legal status. Thousands of Indian tech professionals and other foreign workers faced uncertainty as H-1B processing froze while labor certifications were stalled.
Consular delays similarly affected students, researchers and employees who needed visa stamps to return to U.S. jobs after travel. Many embassies and consulates run partly on fees, but extended shutdown conditions can still cut staffing and appointment availability.
Consequences for employers included:
- Delayed onboarding and project starts
- Use of remote work or temporary domestic staff
- Postponed offers, hitting early-career workers and families arranging moves
- Increased payroll planning complexity and potential financial costs
Agencies named in the order and why they matter
| Agency | How it affects immigration/visas |
|---|---|
| State Department | Consular services, visa interviews, appointment scheduling |
| Department of Labor | LCAs, PERM certifications — prerequisites for many H-1B and green card filings |
| General Services Administration (GSA) | Buildings, contracts, field office openings and support services |
| Department of Defense (DoD) | Security checks and coordination for certain travel/employment categories |
| Small Business Administration (SBA) | Indirectly affects employers who sponsor foreign workers (cash flow, hiring decisions) |
According to analysis by VisaVerge.com, the staffing stability from the injunction “likely eases some immediate staffing risks” but “does not itself change immigration law.”
Practical steps and advice for affected people
- Applicants and employers should expect:
- Agencies to publish operational notices and revised processing times as staff return (these updates may lag reality).
- Mass rescheduling of consular appointments over weeks.
- Continued delays for Labor Department functions to fully restart and for USCIS to receive required certifications.
- Recommended actions:
- Keep copies of appointment notices and school/employer communications.
- Universities often ask for proof before adjusting enrollment dates — preserve documentation.
- Travelers are urged to avoid nonrefundable tickets until visas are issued.
The appeals process and longer-term outlook
The Trump administration is expected to appeal, creating more uncertainty for federal workers and those who depend on them. Immigration advocates caution that even if an appeal were successful, it would not erase the backlog created during the shutdown, because many delayed steps are sequential and must be cleared in order.
Lawyers handling employment cases note:
- H-1B filings can sit ready for weeks waiting on an LCA.
- EB-2 and EB-3 green card cases can stall when PERM and prevailing wage determinations are delayed.
The court’s action underscores the role of appropriations law: Congress can reopen the government with conditions, and courts can enforce those conditions when an administration attempts to move faster than the statute allows. For now, Illston’s injunction keeps the Shutdown Law’s layoff bar in place through January 30, 2026, giving agencies a chance to rebuild capacity and giving immigrants, students and employers more predictability as they plan.
Final takeaway
- The injunction stabilizes staffing immediately but is not an instant cure for backlogs.
- Many immigration processes remain vulnerable to sequential delays caused by the shutdown.
- Applicants, students and employers should prepare for staggered resumption of services and retain documentation to support rescheduling or enrollment/employment adjustments.
For employers filing an H-1B petition, remember the filing form typically used is Form I-129.
On December 17, 2025, a federal judge issued a preliminary injunction blocking roughly 400 planned layoffs and ordering nearly 300 terminated employees reinstated. The order applies to agencies including the State Department, DOL, DoD, GSA and SBA and rests on a continuing resolution that bars layoffs through January 30, 2026. The ruling stabilizes staffing impacting visa interviews, LCAs and PERM processes but will not instantly clear backlogs; rehiring and phased resumption will take weeks or months.
