When the Government Shuts Down, Relocation Slows Down: Lessons from the 2025 Federal Shutdown

When the government reopens after a shutdown, the world moves forward—but employee relocations don't bounce back overnight. The recent lapse in federal funding reminded mobility leaders just how interconnected relocation programs are with public services, regulations, and infrastructure. Even a short disruption can ripple through every stage of a move, from immigration and travel logistics to housing and household goods shipments.

At RELO USA, we saw firsthand how quickly a shutdown can stall progress—and how proactive planning makes all the difference.

 How a Shutdown Impacts Employee Relocation

1. Visa and Immigration Delays
   Many visa and work authorization filings rely on federal agencies like USCIS, the Department of Labor, and the State Department. When these agencies pause or operate with limited staffing, even routine filings can be delayed for weeks—halting start dates and pushing back relocation timelines.
2. Travel and Security Slowdowns
   While airports technically stay open, reduced staffing at TSA and customs checkpoints often means longer security lines, delayed shipments, and unpredictable travel schedules for relocating employees.
3. E-Verify and Employment Verification Interruptions
   When E-Verify goes offline, employers must delay or manually verify employment eligibility. That uncertainty creates compliance risk and can prevent new hires from starting work as planned.
4. Housing and Cost Implications
   Temporary housing stays get extended. Shipment schedules are rearranged. Those "extra few days" quickly turn into unexpected costs for both the company and the employee. When multiple moves are affected at once, corporate relocation budgets can take a hit.

The Employee Experience Matters Most

Beyond logistics, a shutdown affects people. Employees uprooting their families already face stress—school transfers, spouse job changes, new communities. When a shutdown halts progress mid-move, uncertainty increases anxiety, and trust in the relocation process can erode.

Transparent communication, reassurance, and flexibility from employers and relocation partners go a long way toward protecting morale and retention during these times.

Key Takeaways for Mobility Leaders

• Plan for interruptions — Build "shutdown contingencies" into relocation timelines and policy language.
• Communicate early and often — Keep relocating employees informed of potential delays before they happen.
• Lean on your partners — Work with relocation providers, like RELO USA, who have established contingency workflows and vendor relationships to minimize disruption.
• Document and debrief — After a disruption, evaluate what worked, what didn't, and how to strengthen your response next time.

Moving Forward

Shutdowns may be temporary, but the lessons they leave behind are lasting. The best mobility programs don't just move people—they anticipate what could stop them. By using data from this year's shutdown to improve processes and preparedness, organizations can build more resilient, responsive relocation programs for the future.

At RELO USA, we're helping clients review policies, plan for contingencies, and ensure that their employee moves stay on track—no matter what happens in Washington.