Recent legislative, regulatory, and litigation developments have affected Temporary Protected Status (TPS)-related employment authorization, with implications for ongoing work authorization.

The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, includes a provision limiting TPS-based employment authorization documents (EADs) to a maximum validity period of one year, or the duration of an individual’s TPS status, whichever is shorter. The OBBBA also directly curtails the previously available 540-day automatic extensions that many TPS holders relied upon. An interim final rule from the Department of Homeland Security  issued Oct. 30, 2025, eliminated the regulatory basis for those 540-day automatic extensions going forward.

The Deadline for TPS EAD Extensions

For TPS beneficiaries who filed EAD renewal applications before July 22, 2025, and whose applications remained pending, automatic work authorization extensions expired on July 22, 2026, regardless of any later expiration date reflected on a Form I-797C receipt notice. This affected TPS holders from El Salvador, Sudan, Ukraine, and other designated countries that had been counting on extension end dates as late as October 2026.

The Court’s Decision Upholding the 1-Year EAD Cap

Litigation over these policies has produced mixed results. On July 21, 2026, a federal court in Massachusetts temporarily stayed certain United States Citizenship and Immigration Services policies, briefly preserving prior extension expiration dates. However, on Aug. 5, 2026, that same court largely sided with the government, upholding the one-year cap policy and rejecting arguments that it was procedurally flawed or impermissibly retroactive. The court confirmed that TPS beneficiaries from El Salvador, Sudan, and Ukraine are subject to the July 22, 2026, expiration of their 540-day extensions.

The court did grant limited relief on an unrelated policy involving consequences for asylum applicants who failed to pay the annual asylum fee, staying that provision pending further proceedings.

Employer Considerations: I-9 Reverification and E-Verify Compliance

Employers with TPS workers on their payroll may wish to take the following steps:

• Audit I-9 records to identify EADs tied to TPS categories A12 or C19.
• Verify whether those EADs were subject to a 540-day automatic extension that has now been cut short.
• Complete I-9 reverification for any affected employees.
• Monitor E-Verify for status updates reflecting the revised expiration dates.

A Note on Ongoing TPS Litigation for Other Designated Countries

Work authorization for TPS beneficiaries from certain other countries, including Burma (Myanmar), Ethiopia, Haiti, Somalia, South Sudan, Syria, and Yemen, may still be protected by separate court orders and pending litigation.