USCIS TPS EAD Cap Upheld by Court: H.R. 1 Impact on Work Authorization 2026

On August 5, 2026, the U.S. District Court for the District of Massachusetts denied plaintiffs' request to stay USCIS's implementation of employment authorization limits established by the One Big Beautiful Bill Act (H.R. 1). The case, Venezuelan Association of Massachusetts et al. v. USCIS, No. 1:26-cv-13038, challenged several USCIS actions that imposed a one-year cap on Temporary Protected Status (TPS)-based Employment Authorization Documents (EADs). The court rejected all challenges to the TPS EAD cap, ruling that USCIS was not required to undergo notice-and-comment rulemaking because it was implementing a direct congressional directive. The court also found that applying the one-year cap to previously issued 540-day automatic extensions—affecting TPS holders from El Salvador, Sudan, and Ukraine—was not impermissibly retroactive. While the court acknowledged that the new framework could create gaps in work authorization, it held this did not make the cap policy unlawful. It noted that USCIS retains the ability to issue one-year automatic extensions to bridge any gaps, and that future failures to maintain continuous employment authorization could result in independent agency liability separate from H.R. 1 implementation. The court did grant limited, nationwide relief under the Administrative Procedure Act (APA), staying provisions of the April 2026 Interim Final Rule that would allow USCIS to reject asylum applications and initiate removal proceedings for failure to pay the Annual Asylum Fee. The court found these consequences were not mandated by H.R. 1 and likely violated APA notice-and-comment requirements. For employers, this August 5 ruling supersedes the prior July 21 administrative stay. The temporary relief preserving previously extended TPS EAD expiration dates is no longer in effect. Employers should immediately resume standard USCIS guidance on TPS EAD automatic extensions and Form I-9 reverification as litigation on the merits continues.