End of Work Permit Extensions May Trigger Layoffs, Warns AILA

The US Department of Homeland Security (DHS) announced the termination of the 540-day automatic extension for certain employment authorization documents (EADs), a measure introduced under the Biden administration to address processing delays. The change, effective Oct. 30, 2025, will affect foreign nationals renewing their work permits, who will no longer receive automatic extensions.

The American Immigration Lawyers Association (AILA) warns that the move could result in mass layoffs and disrupt US businesses reliant on immigrant workers. “This measure accelerates dismissals, as employers will have no choice but to terminate workers,” says Jeff Joseph, President, AILA. “The Trump administration, once again, is not supporting US businesses and is directly undermining the nation’s economic stability.”

DHS justified the decision by citing security concerns and the need to comply with an executive order issued by President Donald Trump. The department says that limited exceptions will remain, including those authorized by law or through Federal Register notices for Temporary Protected Status (TPS) documentation applicable to specific countries.

AILA leaders argue that the policy shift will worsen existing administrative backlogs. For nearly a decade, US Citizenship and Immigration Services (USCIS), a DHS agency, granted automatic 180-day extensions to work permits. In 2022, the Biden administration expanded this period to 540 days to alleviate processing delays caused by high application volumes and staffing shortages.

Ben Johnson, Executive Director, AILA, cautions that USCIS lacks sufficient funding and personnel to process all renewal applications promptly. “Immigrants requesting EAD renewals already experience several months of delays,” he says. “Without the automatic extension, many will lose their jobs simply because the government cannot act fast enough.”

Immigration advocates also criticized the decision, arguing it could destabilize local economies and labor markets. Todd Schulte, President, FWD.us, described the DHS move as “simply unjust,” calling for modernization and simplification of the renewal process instead of imposing new barriers. “The government should expand access pathways for individuals who are already contributing to the US economy,” Schulte says.

The policy’s reversal marks a broader shift in immigration priorities under the Trump administration, emphasizing enforcement over administrative relief. Industry groups and legal organizations have urged DHS to reconsider or implement transitional measures to prevent disruptions in employment authorization processing. However, as of now, no additional guidance has been issued.

Business associations and employers across multiple sectors are monitoring the impact, particularly in industries with high concentrations of immigrant labor, including technology, healthcare, and manufacturing. Analysts expect a wave of employment disruptions in the coming months as thousands of pending renewals reach expiration without automatic coverage.