2026 Immigration Reform Alert: Court Upholds TPS EAD Cap Under H.R. 1

A federal district court has refused to stay the Temporary Protected Status (TPS) Employment Authorization Document (EAD) cap enacted under H.R. 1, a significant development for hundreds of thousands of TPS holders currently authorized to work in the United States. The court's decision means the cap remains enforceable as legal challenges proceed through the judicial system. H.R. 1, a sweeping legislative package, introduced new restrictions on EADs issued to TPS beneficiaries — a category of immigrants granted temporary humanitarian protection due to unsafe conditions in their home countries. The EAD cap limits the number or duration of work permits available to this group, directly affecting their ability to maintain lawful employment. By declining to issue the stay, the district court signaled it did not find sufficient likelihood of success on the merits or irreparable harm to justify blocking the provision. Plaintiffs challenging the cap must now either appeal the stay denial to a higher court or continue litigating the underlying case, potentially without interim protection for affected TPS holders. While TPS is a separate immigration category from EB-3 employment-based visas, this ruling has broader implications for employment-based immigration policy. EB-3 applicants and sponsors should monitor H.R. 1's implementation, as the legislation contains additional provisions that may affect labor certification, PERM processing, and green card backlogs. Immigration attorneys advise TPS holders to immediately consult legal counsel to assess their specific EAD validity, renewal timelines, and alternative immigration options in light of this ruling.