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The US Department of Labor (DOL) has restarted processing applications for temporary and permanent work programmes after a month-long halt triggered by a federal funding lapse. Beginning around September 30, the outage paused crucial services relied on by employers hiring foreign talent, affecting tech, healthcare, finance, and research sectors.

This development brings major relief to thousands of skilled workers—especially Indian professionals—who dominate the H-1B talent pool.

Key Systems Back Online

According to a notice accessed by India Todaythe DOL confirmed that the Office of Foreign Labor Certification (OFLC) systems are fully functional.

The OFLC’s Foreign Labor Application Gateway (FLAG) portal is now active again, allowing employers to:

• File new Labor Condition Applications (LCAs) for H-1B visas
• Track pending applications
• Submit Program Electronic Review Management (PERM) labor certification cases
• Resume prevailing wage requests

These processes form the backbone of the US employment-based immigration system, ensuring foreign hiring does not adversely affect American worker wages and conditions.

What Caused The Disruption?

The shutdown arose due to a federal funding lapse linked to a broader government shutdown. Although the official DOL notice did not cite the cause, media reports pointed to expired funding. The outage suspended application submissions and responses, straining businesses and international workers alike.

During the downtime, employers were unable to file or update applications—worsening existing delays.

Backlog Means Slower Processing Ahead

While services have resumed, the DOL has warned applicants to expect slower processing times. A significant backlog has piled up, with some PERM applications filed as early as March 2024 still unresolved as of July 2025.

The DOL noted:

This backlog increases anxiety among foreign workers navigating visa expiration risks and legal status uncertainty.

Big Relief For Indian Workers

Indian nationals—who represent nearly 70% of H-1B visa recipients—stand to benefit significantly from the restart. With tech-driven US firms heavily dependent on Indian talent, the reopening of systems marks a key step toward normalcy.

As the OFLC returns to full capacity, stakeholders hope processing timelines stabilise and immigration progress resumes smoothly.