Certain TPS Holders Can No Longer Rely on 540-Day EAD Extensions After August 5, 2026

This update concerns certain people with Temporary Protected Status (TPS) who filed Form I-765 to renew a TPS-based Employment Authorization Document (EAD) before October 30, 2025, and qualified for an automatic extension under the rules then in effect.  

On July 4, 2025, the One Big Beautiful Bill Act was signed into law. Among other things, this law generally limits a TPS work permit or extension to one year or the length of the person’s TPS, whichever is shorter. On July 22, 2025, USCIS published a notice implementing that limit. Under the USCIS policy, certain previously granted 540-day extensions would end one year later, on July 22, 2026, even if the person’s receipt notice showed a later expiration date. 

On July 1, 2026, a coalition of immigrant-rights organizations and labor unions filed a lawsuit against USCIS and other federal officials. The case, Venezuelan Association of Massachusetts v. USCIS, was filed in the U.S. District Court for the District of Massachusetts. The plaintiffs argued, among other things, that USCIS could not cut short 540-day extensions that had already been granted to TPS holders. 

This case specifically affected TPS holders from El Salvador, Sudan, and Ukraine who timely filed EAD renewal applications during the January 17 through March 18, 2025 re-registration period. Based on the 540-day automatic extension, their receipt notices may have indicated that they could continue working until August 31, 2026, or October 11, 2026. However, under the new USCIS policy, these extensions expired on July 22, 2026. 

On July 21, 2026, Senior U.S. District Judge Nathaniel M. Gorton temporarily stopped USCIS from applying the July 22, 2026 expiration date. The emergency order allowed the affected TPS holders to continue relying on their original 540-day extensions while the court considered whether to block the policy for a longer period. 

Unfortunately, on August 5, 2026, Judge Gorton declined to continue that protection for TPS-based EADs. The court found that the plaintiffs had not shown they were likely to succeed in proving that the one-year limit was unlawful or could not apply to extensions that had already been granted. The temporary order therefore ended. 

As a result, affected TPS holders generally cannot work after August 5, 2026 based only on the former 540-day automatic extension. They may continue working if they have a new, unexpired EAD or another independent basis for employment authorization, such as a separate country-specific extension or court order. Each person’s documents and circumstances must be reviewed individually. 

Employers and TPS holders should not rely only on a receipt notice stating that an EAD was extended for 540 days. They should confirm that the employee currently has a valid basis for employment authorization. 

If you have any additional questions, do not hesitate to contact our office at (312) 427-6163 or schedule a consultation online.  

This post reflects the court rulings issued through August 5, 2026, and is intended for general information only. It is not legal advice.