USCIS Finalizes Rule Ending 540-Day Work Permit Auto-Extension

U.S. Citizenship and Immigration Services (USCIS) has issued a final rule codifying the elimination of the maximum 540-day automatic extension for Employment Authorization Documents (EADs). The rule, which takes effect upon publication in the Federal Register on October 14, 2026, applies to EAD renewal applications filed on or after October 30, 2025.

Scope of the Final Rule

The final rule reaffirms an interim regulation introduced last year that scrapped the Biden-era 540-day automatic extension period. According to Fragomen, a global immigration law firm, the rule applies only to certain EAD applications filed on or after October 30, 2025. It does not affect automatic extensions for EAD applications filed before that date.

Under the new regulation, an EAD renewal applicant’s work authorization expires when their EAD card expires and will not resume until USCIS approves the renewal application, unless the individual has a separate basis for work authorization to cover the gap. The rule makes no changes to the interim regulation it codifies.

Impact on Workers and Employers

The policy affects several groups of immigrants who rely on EADs, including asylum seekers and spouses of H-1B visa holders on H-4 visas. The Times of India reports that the automatic extension of work permits during renewal is eliminated, meaning workers lose authorization when their permit expires, even if a renewal is pending.

Foreign workers are generally not permitted to file renewal applications more than 180 days before their current work permits expire. This limitation restricts their ability to offset lengthy processing times at USCIS.

Processing Backlogs and Legal Challenges

Despite the regulatory change, USCIS continues to face significant renewal delays. According to agency data cited by Bloomberg Law, more than 432,000 work permit renewal applications had been pending for six months or longer as of June 30. Of those, more than 91,000 applications had been awaiting a decision for over 18 months.

The policy has faced legal scrutiny. A group of H-4 visa holders filed a lawsuit against the Department of Homeland Security (DHS) in January, arguing that the agency's decision to end the longer automatic extension period violated the Administrative Procedure Act. Last month, a federal judge in California issued a limited injunction blocking enforcement of the interim rule against the plaintiffs involved in the case. The court found that DHS had not adequately followed procedural requirements and failed to address the reliance interests of affected individuals.

Why it matters

The finalization of this rule marks a permanent shift in how work authorizations are handled for certain foreign nationals. By removing the safety net of the 540-day extension, the regulation places greater emphasis on timely processing by USCIS. However, with hundreds of thousands of applications currently pending, workers and employers face increased uncertainty regarding continuous work authorization during the renewal period.

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Sources

• fragomen.com: United States: USCIS Reaffirms Regulation Eliminating Maximum 540-Day EAD Auto-Extension | Fragomen, Del Rey, Bernsen & Loewy LLP
• timesofindia.indiatimes.com: US Department of Homeland Security removes 540-day grace period for immigrants after their work authorisation expires; here's what the new rules say | - The Times of India

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.