The United States Department of Homeland Security (DHS) has finalised a rule ending the automatic extension of Employment Authorization Documents (EADs), putting Indian H-4 spouses and green card applicants at risk of losing work eligibility while their renewals remain pending — even as 63 members of Congress press authorities to clear a mounting green card backlog that disproportionately affects Indian nationals.

What the DHS Rule Changes

The final rule, published in the Federal Register on 14 October 2026 (FR Doc 2026-20955), 'reaffirms and finalises' an interim rule DHS first issued on 30 October 2025. It formally ends 'the practice of automatically extending the validity of employment authorization documents' for applicants who filed timely renewal requests in certain categories.

Until last year, many renewal applicants could continue working for up to 540 days while their applications remained pending. Under the new framework, that safety net is gone for most categories. DHS defended the move, stating it 'enhances benefit integrity and prioritises the proper vetting and screening of aliens before granting a new period of employment authorization.'

Who Is Most Affected

The categories drawing the most concern from Indian immigrant communities are H-4 visa holders — spouses of H-1B workers — and individuals with pending adjustment-of-status applications for permanent residence. Indians constitute the overwhelming majority of both groups, owing to the lengthy country-cap queue for employment-based green cards.

Notably, STEM Optional Practical Training (OPT) extensions and the 'cap-gap' extension for graduating students remain unaffected by the rule change, offering some relief to those segments.

Lawmakers Urge USCIS Action on Green Card Backlog

In a separate but related development, 63 US lawmakers, led by Representatives Yvette Clarke and Raul Grijalva, have formally urged US Citizenship and Immigration Services (USCIS) to accelerate processing of pending green card applications. The legislators flagged that lawfully present immigrants are losing healthcare coverage as a direct consequence of delays — a humanitarian concern layered on top of the employment disruption.

This comes amid longstanding criticism that the employment-based immigration queue for nationals of high-demand countries like India stretches decades under the current per-country cap system.

H-1B Fee Legal Battle Continues

A parallel legal fight over the $100,000 H-1B fee is unfolding in California. Judge Haywood S. Gilliam Jr. of the Northern District of California vacated the policies implementing the fee on 30 September. The administration subsequently appealed to the Ninth Circuit on 9 October.

A joint case management statement was due in the district court on 20 October, with a case management conference scheduled for 27 October. Indian nationals have historically been the largest beneficiary group of the H-1B visa programme, making the outcome of this litigation of direct consequence to thousands of Indian professionals and their families.

What Happens Next

With the EAD auto-extension rule now in full effect and the H-1B fee legal battle heading to the Ninth Circuit, Indian immigrant communities in the US face a period of compounded uncertainty. Advocacy groups are monitoring both tracks closely, and the outcome of the 27 October case management conference is expected to set the litigation timeline through early 2027.