One Big Beautiful Bill’s Impact on TPS Work Permits

On July 4, 2025, President Donald Trump signed into law H.R. 1, the "One Big Beautiful Bill Act." This federal budget reconciliation law addresses various issues including tax policy, border security and immigration, defense, energy production, the debt ceiling, and modifications to SNAP and Medicaid. Among numerous provisions related to spending, fees, and enforcement, this law specifically modified DHS's authority over Employment Authorization Documents (EADs), including those granted under Temporary Protected Status (TPS), significantly limiting work authorization based on TPS. The effects on TPS-based work permits are outlined below:

1. Initial and renewal TPS EADs (categories A12 and C19) will now be valid for no longer than one year, or until the TPS designation concludes—whichever period is shorter, even if the TPS designation itself is extended.
2. There will be only a 365-day automatic extension for TPS EAD renewal applications submitted on or after July 22, 2025, thus eliminating the previous allowance for an automatic extension of up to 540 days.

On March 13, 2026, USCIS released an Update to TPS Page on EAD Automatic Extensions, which aims to clarify and reduce the 540-day automatic extension, which was still applicable to EAD renewals submitted on or before July 21, 2025, under the TPS designation. The update indicates that any part of the 540-day extension that extends beyond July 22, 2025, cannot exceed one year from that date or the duration of the TPS designation period, whichever is shorter.

As a result, automatic extensions for TPS EADs are now shorter, more limited, and considerably less dependable, placing TPS holders at a greater risk of experiencing gaps in work authorization, even with timely submissions. Given the intricacies of this situation, employers are advised to consult with an immigration attorney to ensure compliance.