Labor & Employment Law Daily Wrap Up, IMMIGRATION NEWS—Court temporarily blocks portions of USCIS policies affecting TPS holders and asylum seekers, (Jul 22, 2026)

By WK Editorial Staff

A federal judge temporarily blocked portions of USCIS policies that threatened work authorization for some TPS holders and imposed penalties on asylum seekers who failed to pay a new annual asylum fee.

A federal judge in Massachusetts has temporarily blocked portions of U.S. Citizenship and Immigration Services (USCIS) policies that would have caused some Temporary Protected Status (TPS) holders to lose work authorization and exposed certain asylum applicants to penalties for failing to pay a newly imposed annual asylum fee. The emergency order will remain in place while the court considers a broader challenge to the policies.

In a July 21 memorandum and order, Judge Nathaniel Gorton granted in part and denied in part a request for emergency relief filed by advocacy organizations, labor unions, and TPS-related groups challenging several recent USCIS actions. The lawsuit, Venezuelan Association of Massachusetts v. USCIS, targets a 2025 employment authorization policy, a March 2026 USCIS website update, and portions of an April 2026 interim final rule.

Impacts could have started today. The plaintiffs contend the policies unlawfully affect two groups: TPS beneficiaries and individuals with pending asylum applications. According to the court, the challenged TPS policies retroactively imposed new expiration dates on some employment authorization documents (EADs), potentially causing affected TPS holders to lose their legal authority to work as early as today, July 22, 2026.

The lawsuit also challenges provisions of the April 2026 interim final rule establishing an Annual Asylum Fee (AAF). Under that rule, asylum applicants whose cases remain pending are required to pay a yearly fee. Failure to pay could result in rejection of the asylum application, revocation of work authorization, and the initiation of removal proceedings, according to the court's description of the policy.

Significant consequences. The court concluded that the potential consequences facing plaintiffs were significant enough to warrant temporary relief before a hearing on the broader stay request. The court noted that many TPS holders risked losing work authorization on July 22 and that asylum applicants who failed to pay the annual fee faced potentially severe consequences, including the loss of work authorization and possible removal proceedings.

As a result, the court temporarily stayed four specific actions: the retroactive application of EAD expiration deadlines for affected TPS holders; the rejection of asylum applications for failure to pay the annual asylum fee; the termination of work authorization based on nonpayment of that fee; and the initiation of removal proceedings against individuals who failed to pay the annual fee.

However, the court did not fully suspend the challenged rule. Judge Gorton allowed the government to continue collecting the annual asylum fee.

In announcing the ruling, Democracy Forward and its co-counsel said the decision protects thousands of asylum seekers and TPS holders from immediate harm while litigation continues. The coalition argued that many individuals had relied on longstanding humanitarian protections and work authorization to support themselves and their families.

The temporary administrative stay will remain in effect until the court rules on the plaintiffs' separate motion seeking a longer-term stay under the Administrative Procedure Act. Judge Gorton said that decision will be issued no later than August 5, 2026.

The case is No. 1:26-cv-13038-NMG.

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