Trump Administration Moves to End H-1B Extension Protections, Finalizes Restrictions on Work Permit Renewals

WASHINGTON — The Trump administration is moving to eliminate a policy that allows H-1B visa holders and other skilled foreign workers to receive extensions based on previously approved petitions, while finalizing a separate rule ending automatic work permit extensions for certain foreign nationals, including spouses of H-1B workers.

Both measures, issued by the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS), were made available for public inspection Tuesday and are scheduled for publication in the Federal Register on Wednesday.

The changes could significantly affect Indian nationals, who account for the majority of H-1B visa holders and many H-4 spouses authorized to work in the United States.

Under the first measure, DHS is proposing to eliminate a regulation requiring USCIS officers to generally defer to earlier approvals when reviewing extension petitions involving unchanged facts and circumstances.

The policy, which applies to employment-based visa categories including H-1B and L-1, was formally incorporated into federal regulations in December 2024 under the Biden administration.

DHS argued that eliminating the provision would reinforce the responsibility of petitioners and applicants to establish eligibility for immigration benefits rather than requiring immigration officers to justify decisions that differ from earlier approvals.

The department also raised concerns that the existing policy could allow previously approved petitions containing errors or fraudulent information to receive additional approvals without sufficient scrutiny.

Citing USCIS site-visit data, DHS reported a combined noncompliance or fraud rate of 22.39% among inspected H-1B extension cases from fiscal 2022 through 2025, compared with 16.77% during fiscal 2018 through 2020, when a policy against deference was in place.

For L-1A extension cases, the corresponding rates were 24.46% and 18.37%, respectively.

According to the proposal, approximately 208,429 extension petitions annually were generally eligible for deference between fiscal 2022 and 2025, representing about 30% of the average 688,830 petitions filed each year.

The proposed change will be subject to a 30-day public comment period following publication.

Separately, DHS has finalized a rule ending automatic extensions of employment authorization documents (EADs) for certain foreign nationals who submit timely renewal applications.

The final regulation confirms an interim rule introduced on October 30, 2025, and takes effect upon publication.

Previously, eligible applicants who filed renewal requests before their work permits expired could receive automatic extensions of up to 540 days while USCIS processed their applications.

DHS said eliminating those extensions would strengthen immigration screening and ensure that applicants undergo appropriate vetting before receiving renewed employment authorization.

The decision drew objections from commenters concerned about its impact on H-4 visa holders, particularly spouses of H-1B workers.

Critics argued that processing times for H-4 employment authorization frequently exceed the recommended 180-day renewal filing window, potentially forcing otherwise eligible workers to leave their jobs while awaiting approval.

They also warned that employment interruptions could result in lost income, disruptions to health insurance and housing instability. Commenters emphasized that women represent the majority of H-4 work permit holders.

DHS acknowledged that affected workers could face temporary gaps in employment authorization, along with consequences for income, benefits and career advancement.

However, the department maintained that the changes do not eliminate the underlying eligibility of H-4, L-2 or other qualifying dependent visa holders to apply for work authorization.

DHS estimated that between 20,000 and 33,000 employment authorization documents could expire without renewal during an 18-month period beginning in May 2027.

The department projected approximately $138.1 million in lost employer productivity and $312.1 million in potential labor turnover costs during that period, affecting an estimated 1,700 to 2,800 employers.

While the proposed elimination of deference remains subject to public comments, the finalized work permit regulation represents an immediate tightening of employment authorization procedures for affected foreign workers and their families. (Source: IANS)