In a summer of sweeping immigration updates, the Big Beautiful Bill appear to now reshape how employers manage Form I-9 compliance for Temporary Protected Status (TPS) beneficiaries. On July 22, 2025, the Federal Register published a rule implementing provisions from the HR 1 reconciliation bill, shortening the validity of TPS-related Employment Authorization Documents (EADs), and introducing new fees. Just days later, USCIS quietly issued an August 1 alert that shortens automatic extension periods for TPS EAD renewals. This marks a significant shift in TPS-based work authorization,
HR 1 Rule: TPS EADs Now Valid for One Year
The July 22 Federal Register notice confirms that initial TPS EADs are subject to a $550 additional fee and are valid for up to one year or the TPS designation period, whichever is shorter. Renewal TPS EADs carry a $275 additional fee and follow the same one-year or designation-end cap. Importantly, there is no waiver or reduction available for these fees, although separate TPS EAD fee waivers may still be possible. The key takeaway for employers is that even if a country's TPS designation runs longer, any new TPS-based EAD will expire in one year or less.
USCIS August 1 Alert: A New Rule for Automatic Extensions
USCIS's August 1 guidance confirms the narrower automatic extension period for TPS EAD renewals. TPS beneficiaries presenting an expired or expiring EAD (categories A12 or C19) along with a Form I-797C receipt showing a timely renewal filing will now receive an automatic extension of only 365 days, or until the TPS designation ends, whichever is shorter. This new rule applies to all Form I-797C receipts dated July 22, 2025 or later. Previously, TPS EADs could benefit from automatic extensions of up to 540 days, but that is no longer the case.
What This Means for Form I-9 Compliance
When an employee presents an expired or expiring TPS EAD (A12 or C19) and a Form I-797C receipt notice showing a timely filing of the TPS EAD renewal, employers may update the Form I-9 to reflect continued work authorization. However, this authorization is limited to the shorter of 365 days from the EAD's "Card Expires" date or the TPS designation end date for the country. This differs from country-specific DHS announcements or court orders, which may provide longer validity periods.
TPS Developments That Intersect with the One-Year Rule
Recent TPS updates continue to evolve alongside the new one-year cap. A July 31, 2025 court order blocked TPS termination for Honduras, Nepal, and Nicaragua, extending work authorization through November 18, 2025. For Haiti, a court-ordered extension pushed certain TPS EADs to February 3, 2026. Earlier USCIS guidance allowed 540-day extensions for Venezuela and others, but the July 22 rule now overrides that for any TPS renewal filed on or after this date.
Employer Takeaways
Employers should prepare for yearly EAD renewals for TPS workers and update re-verification schedules to reflect the shorter of 365 days or the TPS designation end date when relying on a Form I-797C receipt. Employers must do all of this while being mindful that DHS or court orders may extend EAD validity. Employers that use electronic I-9 systems with automated workflows and automated calculations should ensure the timing is correct on these extensions. Additionally, increased fees and more frequent filings mean higher administrative and financial planning needs for employees that could result in late filings and work authorization gaps.
Final Word
The July 22 HR 1 rule and August 1 USCIS clarification together usher in a new era of TPS-based employment authorization, one defined by shorter validity periods, higher costs, and tighter compliance timelines. It is unclear if we will see these types of changes in other areas. Employers should monitor USCIS country-specific pages, act early on renewals, and rely on trusted legal counsel to stay ahead.
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