DOJ-EOIR work authorization

Federal Court Challenge Filed Against USCIS Annual Asylum Fee Policy and TPS Work Authorization Rules

A coalition of immigration organizations sued USCIS over policies that reject asylum applications and terminate work permits for nonpayment of an annual asylum fee, and restrict TPS employment authorization.

A coalition of immigrant advocacy organizations and labor unions filed a lawsuit challenging USCIS policies that threaten to strip tens of thousands of asylum seekers and Temporary Protected Status (TPS) holders of their ability to work, support their families, and remain safely in the United States. The case, filed in federal court on July 2, 2026, targets four regulatory changes tied to the so-called One Big Beautiful Bill Act and raises urgent questions about due process, notice, and employment continuity for two vulnerable groups.

What changed

The lawsuit challenges four USCIS policies implementing portions of the so-called One Big Beautiful Bill Act that unlawfully impose new barriers on asylum seekers and TPS holders.

Annual Asylum Fee and Application Rejection

The lawsuit challenges USCIS’s decision to reject pending asylum applications and terminate work permits when applicants fail to pay a newly created annual asylum fee – without providing sufficient notice that the payment is due, a grace period for late payment, or any way to appeal a rejection. USCIS is now charging an annual asylum fee of $102.

30-Day Processing Rule Elimination

The lawsuit challenges USCIS’s unlawful elimination of a decades-old rule requiring the agency to process initial work permit applications for asylum seekers within 30 days, a change the agency made without providing the public with notice or an opportunity to comment as required by law.

TPS Work Authorization Changes

The lawsuit also challenges USCIS’s implementation of new employment authorization policies for TPS holders. USCIS is updating regulations limiting the employment authorization period for those under TPS to one year or the remaining TPS designation period, whichever is shorter.

Plaintiffs and Legal Representation

Plaintiffs in the case include the Venezuelan Association of Massachusetts; the National TPS Alliance (NTPSA); the Asylum Seeker Advocacy Project (ASAP); the Service Employees International Union (SEIU); and 32BJ SEIU. They are represented by Democracy Forward, National Day Laborer Organizing Network, and ASAP.

Why it matters

The changes challenged in this lawsuit create cascading risks for your clients. This policy could permanently prevent otherwise eligible individuals from pursuing asylum, immediately terminate their work authorization, and expose them to detention and deportation to countries where they face persecution.

Notice and Due Process Gaps

The annual asylum fee regime creates a compliance trap with no grace period. Some people report that they never received a notice, and only learned that their fee was due by checking online. Once USCIS says that it will reject your asylum application, cancel your work permit, and reject any pending work permit applications based on seeking asylum if the fee is not paid within 30 days.

Employment Continuity Risk

For TPS holders, the restriction to one-year work permits creates renewal cycles and removes the longer authorization periods many had relied on. For asylum seekers, the policy could immediately terminate their work authorization if the annual fee goes unpaid for any reason—including mail delivery failures or lack of online access.

Regulatory Procedure Violation

The challenge to the 30-day processing rule raises a core Administrative Procedure Act (APA) issue: USCIS eliminated an established obligation without notice-and-comment rulemaking. This affects your timeline for advising clients on work permit applications filed as part of pending I-589s.

Way forward

  • Audit your pending asylum and TPS client roster now. Track which clients have annual asylum fee notices and which are approaching the 30-day payment deadline. Flag clients without reliable mailing addresses or internet access.

  • Verify payment status online. Have clients check their USCIS account (https://www.uscis.gov) immediately. Do not wait for a notice in the mail. USCIS is now charging an annual asylum fee of $102. If your asylum application has been pending for more than 1 year, USCIS can charge the annual asylum fee at any time.

  • Make payment immediately if due. It is not possible to apply for a fee waiver. Late payment results in application rejection and work permit termination. There is no grace period or appeal right.

  • Monitor the lawsuit. The case is filed in federal court (name: Venezuelan Association of Massachusetts et al. v. USCIS et al.). Watch for preliminary injunction motions that might pause enforcement while the litigation proceeds. Check Democracy Forward, ASAP, and the National TPS Alliance websites for updates.

  • Document notice receipt. When clients receive fee notices, save screenshots, email confirmations, and dates. This creates a record if challenges arise later about whether proper notice was given.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Fola Editorial is not a law firm. You should consult with a licensed immigration attorney in your jurisdiction to understand how these policies and any pending litigation may affect your specific situation or case. Immigration policy can change without notice. Verify all information against the authoritative source linked above and the most current USCIS guidance before taking action.

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