US To End 540-Day Automatic Immigrant Work Permit Extension: Who's Affected?

News Summary
The Trump administration is set to terminate the automatic 540-day extension of certain immigrant work permits for all renewal applications filed on or after October 30, 2025. This decision is expected to impact hundreds of thousands of immigrants, including spouses of H-1B visa holders and green card applicants, and reverses a Biden-era policy. The Department of Homeland Security (DHS) cited “proper vetting” and “national security” as reasons for the change. This move is the latest in a series of actions by the Trump administration to tighten immigration policies. Florida Governor Ron DeSantis also announced measures to restrict the use of H-1B visas in public universities. Studies warn that these crackdowns could reduce the U.S. workforce by 6.8 million by 2028 and 15.7 million by 2035, potentially leading to lower economic growth and decreased production of goods and services. Furthermore, experts and investors like Kevin O'Leary view President Trump's proposed $100,000 H-1B visa fees as a threat to U.S. tech supremacy, risking a brain drain of top talent. Companies such as Nvidia Corp. have reportedly pledged to cover these fees for new hires, underscoring the vital role of immigration in the tech industry. The Labor Department has also warned that immigration crackdowns could lead to food shortages and soaring prices.
Background
The current administration, led by President Donald J. Trump (re-elected in November 2024), is implementing a series of measures aimed at tightening immigration policies. The decision to terminate the 540-day automatic work permit extension is a key component of his "America First" agenda, framed by his administration as essential for enhancing national security and ensuring proper vetting of immigrants. This policy reverses a previous Biden administration rule that allowed H-4 visa holders, spouses of other employment-based visa holders, and green card applicants to automatically receive a 540-day extension of their Employment Authorization Documents (EADs) while awaiting U.S. Citizenship and Immigration Services (USCIS) processing of their renewal applications, thus ensuring their legal employment. The H-1B visa is a non-immigrant visa category for highly skilled foreign workers, particularly favored by the tech industry, and changes to its policies significantly impact the U.S.'s ability to attract tech talent and maintain competitiveness.
In-Depth AI Insights
Beyond the stated reasons of “national security,” what are the true underlying economic and political motivations for this policy reversal? - Political Motivation: To solidify President Trump's