The Trump administration has announced a new rule that terminates the 540-day automatic extension period for work permits, which previously allowed immigrants to continue working while awaiting renewal of their authorisation. This decision was made by the Department of Homeland Security (DHS) on Tuesday, local time, and represents a significant shift in immigration policy amid ongoing efforts to tighten immigration controls.

Previously, this extension was introduced under the Biden administration to provide a safety net for immigrant workers facing delays in processing their applications. However, the Trump administration has now opted to end this grace period, which will primarily impact asylum seekers and spouses of H-1B visa holders, particularly affecting many Indian nationals.

According to reports from Bloomberg Law, the DHS stated that the new measure would facilitate more frequent background checks on applicants. The grace period was originally designed to protect immigrants from losing their jobs due to delays in processing by the US Citizenship and Immigration Services (USCIS). However, the current administration has reportedly made it increasingly difficult for immigrants to maintain or renew their work permits.

Pending Applications and Legal Challenges

As of 30 June 2026, over 432,000 work permit renewal applications were pending at USCIS for more than six months, with more than 91,000 of these applications outstanding for over 18 months. Foreign workers can only submit renewal applications within 180 days prior to their permit expiry, creating additional pressure on applicants.

In January, a group of H-4 visa holders initiated legal action against the federal agency, contending that the policy change contravened the Administrative Procedure Act. A California judge subsequently ruled in September that the interim final rule could not be enforced against these plaintiffs, citing the agency’s failure to adhere to procedural requirements and neglecting to consider the reliance on the previous policy.

The final rule is set to take effect upon its publication in the Federal Register on 14 October, marking a critical juncture for many immigrants reliant on work permits.

Changes to Refugee Status Contestation

In a related move, the Trump administration has also reduced the timeframe for refugees to contest the termination of their status from 30 days to just 10 days. This policy change is expected to complicate the process for those affected, as they may struggle to secure legal representation and gather necessary documentation within the shorter timeframe.

Refugee advocates have expressed concern that this alteration could hinder individuals’ ability to effectively challenge decisions regarding their status. The administration has indicated that the aim of this policy is to address potential risks associated with individuals granted refugee status who may not be eligible for such classification.

While the specific number of individuals impacted by this change has not been disclosed, the policy appears to target refugees admitted during the Biden administration, citing an alleged decline in the integrity of the refugee programme during that period. The Trump administration is reportedly reviewing the cases of at least 185,000 refugees who were admitted under Biden and whose green card applications are still pending.

Since returning to the White House for a second term in January last year, Trump has reiterated his commitment to a stringent immigration policy, which includes suspending refugee admissions and imposing additional requirements for H-1B petitions.

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