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Reading: Are H-1B visa companies affected by the US authorities shutdown? US embassy clarifies
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StockWaves > Business > Are H-1B visa companies affected by the US authorities shutdown? US embassy clarifies
Business

Are H-1B visa companies affected by the US authorities shutdown? US embassy clarifies

StockWaves By StockWaves Last updated: October 2, 2025 9 Min Read
Are H-1B visa companies affected by the US authorities shutdown? US embassy clarifies
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Contents
This is what US Embassy mentionedWhat about visas?China launches “Ok visa”What makes Ok visas “completely different”?H-1B visa

Amid the U.S. authorities shutdown, the Embassy in India mentioned that whereas passport and visa companies will proceed. Nonetheless, the embassy clarified that scheduled passport and visa companies each inside the US and at US embassies and consulates overseas will proceed as circumstances enable.

Additionally Learn: US Authorities Shutdown LIVE: White Home warns of ‘imminent’ federal layoffs amid funding stand-off

This is what US Embassy mentioned

In a submit X, US Embassy to India, “Right now, scheduled passport and visa companies in the US and at U.S. Embassies and Consulates abroad will proceed in the course of the lapse in appropriations because the scenario permits. We is not going to replace this account till full operations resume, aside from pressing security and safety info. For info on our companies and working standing, go to http://journey.state.gov.”

The present US authorities shutdown is the primary in almost seven years, with the final partial shutdown occurring throughout Donald Trump’s first time period in 2018.

As with previous shutdowns, all non-essential federal companies have come to a halt. Nonetheless, “excepted” workers, these whose work is deemed essential to guard life and property, are required to proceed working with out pay till the shutdown ends.

Additionally Learn: US Authorities shutdown persists as Senate fails to go funding payments but once more

Throughout a authorities shutdown, the federal authorities halts all “non-essential” operations. This results in noticeable disruptions in a number of areas, together with delays or reductions in visa and passport companies, the closure or restricted functioning of federal companies reminiscent of NASA and the Division of Training, and restricted entry to nationwide parks and monuments. Important companies, reminiscent of these associated to public security and nationwide safety, proceed to function, however typically with out rapid pay for workers.

Regardless of agreeing to attend a gathering on Monday with key congressional leaders, together with Senate Majority Chief John Thune (R-S.D.), Home Speaker Mike Johnson (R-La.), Home Democratic Chief Hakeem Jeffries (D-N.Y.), and Senator Chuck Schumer, Trump has to this point proven little willingness to interact with Democrats’ calls for on well being care funding.

What about visas?

Whereas some authorities companies proceed throughout a shutdown if funded by consumer charges, others could face cutbacks. The US Embassy in India has said that consular companies will stay operational in the course of the lapse in congressional appropriations.

Nonetheless, not all features are assured to run easily.

Though the embassy reaffirmed that passport and visa companies “will proceed … because the scenario permits,” that wording alerts potential limitations. Decreased staffing or reliance on collected charges could result in slower processing instances, shortened working hours, or the suspension of non-urgent purposes—patterns seen in previous shutdowns.

China launches “Ok visa”

China on Wednesday launched a brand new visa program designed to draw overseas expertise in science and expertise, as a part of its broader technique to surpass the US in key innovation sectors.

Introduced in August, the brand new “Ok visa” streamlines the immigration course of for certified people, in accordance with Chinese language state media. The transfer highlights a stark distinction with latest U.S. coverage, the place the Trump administration has imposed sudden and expensive modifications to expert employee visas, elevating limitations for overseas professionals.

“In opposition to the backdrop of some nations retracting, turning inward, and sidelining worldwide expertise, China has keenly seized this essential alternative and promptly launched this coverage,” state newspaper Folks’s Each day mentioned in a remark piece on Tuesday.

What makes Ok visas “completely different”?

In distinction to many different visa classes, the Ok visa doesn’t require a home employer or entity to difficulty an invite to the applicant.

“Ok visas will provide extra comfort to holders by way of the variety of permitted entries, validity interval and length of keep,” state information company Xinhua reported in August.

Additionally Learn: Trump confirms meet with China’s Xi Jinping in ‘4 weeks’, says ‘Soybeans shall be a significant subject of dialogue’

The official description for these in a position to apply is “younger overseas scientific and technological abilities”, however the precise age, academic background and work expertise necessities wanted are as but unclear.

Xinhua mentioned visa-holders will be capable to “interact in exchanges in fields reminiscent of schooling, tradition, and science and expertise, in addition to related entrepreneurial and enterprise actions”.

Additionally Learn: Donald Trump’s BIG warning as authorities shutdown looms: ‘Quite a bit’ of federal staff might be laid off

Throughout the Atlantic, the US tech business has been rattled by sudden modifications made by the Trump administration to the H-1B visa process.

H-1Bs enable corporations to sponsor overseas staff with specialised expertise — reminiscent of scientists, engineers, and laptop programmers — to work in the US for 3 years, with a potential extension to 6.

Such visas are extensively utilized by the tech business, however the brand new H-1B visa coverage now requires a one-time $100,000 payment.

Indian nationals account for almost three-quarters of the permits allotted through a lottery system annually.

The Folks’s Each day article on Tuesday pushed again at what it known as “unusual rumours” across the new visa creating “immigration issues” in China.

“The so-called “immigration disaster” is not going to materialise, we should always have cultural confidence,” it mentioned.

H-1B visa

India remained the highest recipient of remittances at USD 118.7 billion in FY24, with about 23 per cent of it coming from the US. The visa payment hike is more likely to cut back each the inflows and the share of the US over the medium time period.

Between October 2023 and September 2024, whole H-1B visas issued for 4 IT corporations, which account for 50 per cent of the business income, stood at 34,507, it mentioned, including that over 35 per cent was for preliminary employment and 65 per cent for persevering with employment. The share of preliminary employment is predicted to say no over the medium time period, it mentioned.

Visa bills come at 0.02-0.05 per cent of the entire worker price, with H-1B visa charges ranging between USD 2,000 and USD 5,000 per particular person, it mentioned.

Over a 3rd of the authorized H-1B purposes from October 2023 to September 2024 have been for preliminary employment and if this share stays fixed subsequent fiscal 12 months, the brand new payment construction may crank up visa price to 1 per cent of whole worker price. If the share is lowered, visa-related prices are anticipated to stay 0.3-0.6 per cent of the entire worker price.

Right now, scheduled passport and visa companies in the US and at U.S. Embassies and Consulates abroad will proceed in the course of the lapse in appropriations because the scenario permits.

Tier-1 IT corporations reminiscent of TCS, Infosys, Wipro and HCL generate 96 per cent of their income from the worldwide markets, with the US alone accounting for 53 per cent.

(With inputs from companies)

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