Chino Hills, CAHenderson, NVServing all 50 states

Federal Court Pauses Key H.R. 1 Rules for TPS Holders and Asylum Seekers: What the Order Means for You

A federal court in Massachusetts has temporarily halted several immigration provisions rolled out under H.R. 1. If you hold Temporary Protected Status or have a pending asylum case, here is what changed — and what did not.

On July 21, 2026, a federal judge in Massachusetts temporarily blocked several immigration policies that the government had put in place under H.R. 1 — the budget reconciliation law many people know as the “One Big Beautiful Bill Act.” U.S. Citizenship and Immigration Services (USCIS) has confirmed that it will comply with the order. If you hold Temporary Protected Status (TPS) or have a pending asylum application, this is one of the most consequential developments of the year for your work permit and your case. This post explains, in plain language, exactly what the court paused, what remains in force, and the steps you should take now.

What the court ordered

According to USCIS’s official alert issued on July 23, 2026, the U.S. District Court for the District of Massachusetts granted, in part, an emergency motion for an administrative stay in a case called Venezuelan Association of Massachusetts, et al. v. United States Citizenship and Immigration Services, et al., No. 26-cv-13038-NMG (D. Mass.). The plaintiffs are membership organizations that represent people who hold TPS and people with pending asylum applications.

The order temporarily stays four specific policies that the government had adopted through a July 2025 Federal Register Notice, a March 2026 website update, and an April 2026 interim final rule. Those four paused policies are:

The shortening of TPS-based work permit expiration dates. Any TPS-based Employment Authorization Document (EAD) that had previously been extended must now keep its prior expiration date. In other words, an earlier extension that H.R. 1 policy had tried to cut short is honored again.

The rejection of asylum applications for failure to pay the annual asylum fee. USCIS may not reject an asylum application solely because the applicant has not paid this new recurring fee.

The termination of work authorization for failure to pay the annual asylum fee. An asylum applicant’s employment authorization may not be cut off simply because the annual fee went unpaid.

The start of removal (deportation) proceedings based solely on failure to pay the annual asylum fee. The government may not place someone in removal proceedings for that reason alone.

USCIS has said it will comply with the order while the litigation continues. This is a court-ordered pause, not a permanent ruling on whether the underlying policies are lawful.

The background: what H.R. 1 changed

H.R. 1, the reconciliation law enacted in 2025, directed sweeping changes to immigration fees and related procedures. To carry those changes out, the Department of Homeland Security published an interim final rule on April 29, 2026, effective May 29, 2026. That rule amended USCIS regulations across several parts of Title 8 of the Code of Federal Regulations (8 CFR parts 103, 106, 208, 244, and 274a) to put in place, among other things, a new asylum filing fee, a first-of-its-kind annual asylum fee, a new Form I-94 fee, and changes to the validity periods of certain employment authorization documents.

Two features of that rulemaking are central to the new court order. First, the rule spelled out consequences for not paying the annual asylum fee — including rejecting applications, ending work authorization, and referring people for removal. Second, related guidance changed how long certain TPS-based work permits would remain valid. It is precisely these consequences and this shortening that the Massachusetts court has now paused.

What is the “annual asylum fee”?

Historically, asylum in the United States was free to apply for. A person fleeing persecution could file Form I-589, Application for Asylum and for Withholding of Removal, without paying a government filing fee. H.R. 1 changed that framework by authorizing both a fee to file for asylum and a separate recurring fee — an annual asylum fee — that an applicant must continue to pay while the case remains pending. Asylum itself is governed by section 208 of the Immigration and Nationality Act (INA), codified at 8 U.S.C. § 1158; the fee provisions were implemented through the April 2026 rule described above.

The recurring nature of this fee is what made the enforcement consequences so significant. Asylum cases frequently remain pending for years because of backlogs. A recurring fee, combined with automatic penalties for missing it, created the risk that a person could lose the ability to work — or even be placed in removal proceedings — over a missed payment rather than over the merits of the asylum claim. The court’s order pauses those automatic penalties.

What the stay means if you hold TPS

Temporary Protected Status is a humanitarian designation under INA section 244 (8 U.S.C. § 1254a) that allows nationals of certain countries to live and work in the United States during a designated period. Work authorization is one of the most important practical benefits of TPS, and the expiration date printed on a TPS holder’s EAD determines how long an employer can lawfully keep that person on payroll.

Under the court’s order, a TPS-based EAD that had already been extended must retain its earlier expiration date rather than the shortened date the challenged policy would have imposed. Practically, this means some TPS holders who feared their work permits were being cut short should see the longer, previously granted validity honored. If you are a TPS holder, look carefully at your EAD and any extension notices you have received, and confirm with an attorney which expiration date now controls your situation. Employers completing or reverifying Form I-9 should be equally careful to apply the correct date.

What the stay means if you have a pending asylum case

If you have an asylum application pending, the order provides meaningful breathing room on three fronts. First, USCIS may not reject your application solely because an annual asylum fee went unpaid. Second, your work authorization may not be terminated for that reason alone. Third, you may not be placed into removal proceedings based only on nonpayment of that fee. For applicants who have waited years for a decision and depend on their work permits, this removes — at least for now — a serious source of uncertainty.

Important: you must still pay the fee if USCIS bills you

This is the single most important point for asylum applicants to understand, and it is easy to get wrong. The court’s order expressly allows USCIS to keep collecting the annual asylum fee. USCIS has stated that anyone who receives a notice about the fee must still pay it according to the instructions in that notice. In short, the order pauses the automatic penalties for nonpayment — it does not excuse you from paying. If you receive a fee notice, do not ignore it. Follow the instructions, keep proof of payment, and contact your attorney if anything about the notice is unclear.

What has not changed

The order is narrow. USCIS has been clear that all other fees and requirements of H.R. 1 continue in effect. That includes the new asylum filing fee, the Form I-94 fee, and the other fee and procedural changes the April 2026 rule put in place. If your matter involves an H.R. 1 fee that is not one of the four items the court paused, you should assume it still applies. Do not treat this order as a general suspension of H.R. 1 — it is not.

Why “administrative stay” and “pending further proceedings” matter

An administrative stay is a temporary measure a court uses to preserve the status quo while it considers the deeper legal questions in a case. It is not a final decision that the challenged policies are unlawful, and it can be modified, extended, or dissolved as the litigation moves forward. USCIS itself framed its compliance as lasting “pending further judicial proceedings” and said it will provide updated instructions as developments occur.

For you, that means two things. The relief described above is real and in effect now, but it is also provisional. The rules could change again — in either direction — depending on what the court does next. This is a moment to get current, accurate advice rather than to assume the situation is permanently settled.

Who is covered by the order

The case was brought by organizations representing TPS holders and pending asylum applicants, and USCIS has stated it will comply with the order agency-wide as it applies to the four paused policies. Because the precise scope and duration of any court order can be technical, you should not assume — in either direction — how it applies to your individual circumstances without checking. A short conversation with an immigration attorney can confirm whether and how the pause affects your specific EAD, application, or fee notice.

What to do now

If you hold TPS: locate your EAD and every extension notice you have received, and confirm which expiration date now governs your work authorization. Give your employer accurate information for Form I-9 purposes.

If you have a pending asylum case: keep working and keep your application active. If you receive an annual asylum fee notice, pay it on time and keep proof — the collection of the fee has not been paused.

Do not ignore any notice from USCIS, and do not assume a missed deadline will be forgiven. The safest course is always to comply and then seek advice.

Watch for updated guidance. USCIS has said it will issue further instructions as the litigation develops. Court-driven situations can change quickly.

Get advice tailored to your facts. The relief here is specific and provisional, and how it applies depends on the details of your case.

How we can help

At Parikh & Prasad, PC, we monitor immigration litigation and agency policy closely so our clients are never caught off guard by a fast-moving change like this one. If you hold TPS, have a pending asylum application, or have received a fee notice you do not understand, we can review your documents, tell you exactly how this order affects you, and help you stay in compliance while protecting your ability to live and work in the United States. Contact us to schedule a consultation.

This post is attorney advertising and is provided for general information only. It is not legal advice and does not create an attorney-client relationship. Immigration law changes rapidly; consult a qualified immigration attorney about your specific situation.

Related Practice Areas

Speak directly with an attorney

Schedule a free 15-minute consultation to discuss your immigration matter — no obligation.

Schedule a Free Consultation