USCIS policy update

DHS Proposed Rule Would Bar Asylum Seekers From Work Permits

A proposed DHS rule would suspend work authorization for asylum applicants until the agency reduces processing times to 6 months. The change could cost asylum seekers up to $126.6 billion annually in lost wages.

On February 23, 2026, the Department of Homeland Security published a Notice of Proposed Rulemaking that would fundamentally restructure work authorization rules for people seeking asylum. The proposed rule would pause new work permit applications and extend waiting periods, affecting an estimated 2.3 million people currently working legally while their asylum cases are pending—and hundreds of thousands more who would apply in the future.

What changed

The proposed rule would indefinitely bar people who seek asylum after the rule goes into effect from applying for authorization to work legally during their years-long legal process. The rule includes several new mechanisms:

  • Eligibility pause: If implemented, the asylum work permit rule would halt the processing of initial applications for work permits until USCIS can process all affirmative asylum applications within an average of 6 months. As noted in the NPRM, processing times in recent years have averaged between 22-35 months. DHS estimates that the pause on initial applications could last from 14 to 173 years or longer.

  • Extended waiting period: This new regulation would increase the time those seeking asylum must wait before they are eligible to apply for work authorization from 5 months to 1 year.

  • Expanded USCIS discretion: The rule would expand U.S. Citizenship and Immigration Services’ (USCIS) authority to deny applications for work permits based solely on agents’ discretion.

  • Stricter renewal terms: This proposed asylum work permit rule would create new, onerous requirements to renew work authorization for those who already have it.

Why it matters

The economic and operational impact on your clients is severe. The lost compensation to these asylum applicants could range from $34.6 billion to $126.6 billion annually (undiscounted) depending on the wages the asylum applicant would have earned and other factors.

For practitioners advising asylum applicants:

  • Immediate filing risk: Any new asylum application filed after the rule’s effective date would face a 12-month waiting period before EAD eligibility—double the current 5-month window.

  • Processing bottleneck: The pause mechanism is a hard stop. USCIS is instructed not to accept initial EAD applications whenever asylum processing time exceeds 6 months. Since current times are 22–35 months, a multi-year freeze is possible from day one.

  • Existing work permit holders at risk: Roughly 2.3 million adults are already legally working while completing the asylum process, helping to fill essential roles in industries facing widespread labor shortages, including in food, construction, and transportation. Preventing large numbers of these individuals from renewing their work permits and barring new workers from joining them will worsen labor shortages and disrupt production and services for everyday Americans.

  • Tax revenue and consumer impact: People with temporary status, including those with an active asylum claim, pay an estimated $25.7 billion each year in federal, state, and local taxes. These tax dollars pay our teachers and first responders, infrastructure like roads and bridges, and key programs like Medicare and Social Security. Cutting off this revenue stream would undermine economic stability and weaken the government’s capacity to sustain essential public services and programs.

Way forward

  • File before the rule’s effective date: If your asylum client is eligible now, prioritize filing both the asylum application (Form I-589) and the work authorization application (Form I-765, Category A(3)) immediately. Once the rule is final and effective, new applicants will face a 12-month waiting period and possible application pause.

  • Monitor the comment period: Comments on this proposed rule, including the proposed information collections, must be received on or before April 24, 2026. If that deadline has passed, watch the Federal Register for the final rule and its effective date.

  • Document processing timelines: Track USCIS asylum processing times weekly via the USCIS processing time tool. If times fall below 180 days, the pause lifts; if they exceed 180 days again, the pause resumes. This will determine whether new EAD applications are accepted.

  • Advise clients on renewal strategy: Clients with active EADs should understand the new renewal requirements under the proposed rule. Renewal will become more discretionary and may require additional evidence of continued eligibility.

  • Prepare for legal challenges: Given the rule’s breadth and estimated economic impact, litigation is likely. Stay informed on federal court decisions challenging the rule’s legality or implementation.

Disclaimer

This article summarizes a proposed rule published by DHS and is for informational purposes only. It does not constitute legal advice. Fola is a software company, not a law firm. Immigration law is complex and changes frequently. You must verify all information against the primary source linked above and consult with a licensed immigration attorney before advising clients or making filing decisions. Policy can change without notice.

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