New US Immigration Rule Leaves Thousands of Foreign Workers Facing Sudden Job suspensions

A newly finalised rule by the United States Department of Homeland Security (DHS) ending automatic extensions for employment authorization documents has triggered mounting operational risks for American businesses and financial uncertainty for foreign workers, including green card applicants and H-4 spouses.

Published and brought into effect in the Federal Register on October 14, 2026, the final rule formalises a policy that has applied to renewal applications filed on or after October 30, 2025. Under the updated framework, codified at 8 CFR 274a.13(e), foreign nationals who file timely work permit renewals can no longer automatically continue working after their existing Employment Authorization Document (EAD) expires.

Government projections included in the rule estimate that between 20,000 and 33,000 work permits could lapse over an 18-month period starting in May 2027. Federal authorities maintained that the strict measure is necessary to vet and screen individuals thoroughly before granting new authorization periods.

The change dismantles a multi-year cushion designed to protect workers from government processing backlogs. Before November 2016, the US Citizenship and Immigration Services (USCIS) was mandated to process EAD applications within 90 days or grant interim permits for up to 240 days. 

DHS later replaced that timeline with an automatic 180-day extension, which was temporarily raised to 540 days in May 2022 and April 2024, before being made permanent in December 2024. The new regulation completely removes both the 540-day bridge and the older 180-day grace period for covered categories.

Immigration experts at Reddy Neumann Brown PC warned that the fallout will fall heavily on adjustment-of-status applicants holding category (c)(9) EADs and H-4 spouses of H-1B visa holders under category (c)(26). Because H-4 spouses derive their right to work solely from the EAD card rather than their underlying legal status, any delay past the card's expiration date creates an immediate legal ban on employment.

Legal analysts at the American Immigration Council noted that the policy shift threatens to destabilize household incomes and leave corporate employers facing severe operational disruptions, unexpected staffing shortages and forced unpaid leaves. Under one scenario highlighted in official records, a green card applicant who submitted a renewal on February 4, 2026, for a permit expiring on May 30, 2026, would be legally barred from working on May 31 if USCIS has not adjudicated the file.

Several specific groups remain insulated from the rule. Renewals properly submitted before October 30, 2025, retain their previous extensions of up to 540 days. F-1 STEM OPT students keep their separate 180-day extension, while L-2 and E spouses retain work rights tied to their underlying status. Temporary Protected Status (TPS) beneficiaries also remain covered by separate statutory notices.