Spouses of H-1B holders sue US govt over end of automatic work permits

The lawsuit challenges a recent DHS rule change, arguing it was imposed without due process and could force thousands of legally employed dependents to stop working amid visa renewal delays

Spouses of H-1B visa holders have filed a lawsuit against the US Department of Homeland Security (DHS), challenging a recent rule that ended automatic extensions of work permits, arguing that the move threatens jobs and financial stability for thousands of immigrant families.

 

The legal challenge targets an interim final rule that came into effect on October 30, 2025, which scrapped automatic Employment Authorization Document (EAD) extensions for eligible applicants. According to a Bloomberg report, the case was filed in a federal court in California and contends that the rule was introduced without proper justification or public consultation, in violation of administrative law.

What changes did the revised policy bring?

Under the revised policy, H-4, H-1B visa holders and other eligible dependents must now apply for EAD renewals up to 180 days before their permits expire. This replaces the earlier provision that allowed automatic extensions of up to 540 days while renewal applications were under review.

 

Plaintiffs argue that the change is particularly harmful given long processing delays at US Citizenship and Immigration Services (USCIS), which can stretch close to a year. Without automatic extensions, many applicants are forced to stop working once their permits lapse, despite having lawful status.

What does the lawsuit state?

The lawsuit alleges that DHS failed to demonstrate any urgent need for bypassing the notice-and-comment process typically required for regulatory changes. Lawyers representing the plaintiffs said the government’s stated concerns around immigration screening and national security do not justify abruptly ending a policy that had allowed authorised workers to remain employed.

 

The complaint describes the rationale for the rollback as “embarrassingly obvious”, arguing that the agency already conducts background checks and vetting without requiring workers to lose their jobs while applications are pending.

Impact on immigrant families and employers

Advocacy groups say the rule disproportionately affects Indian professionals, who form a significant share of H-1B visa holders and their dependents. Many H-4 EAD holders work in sectors such as technology, healthcare and education, and families often rely on dual incomes to manage high living costs in the US.

 

Loss of automatic extensions could lead to widespread employment disruptions, forcing skilled workers out of the labour market and creating uncertainty for employers.