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Economic Impact of Immigration/Policy & Research/Immigration/National/Economic/Administrative Policy

Ending Automatic Work Authorization Extensions
Will Cost Billions

What to know about the federal government’s move to end automatic extensions of work authorization for millions of long-term residents.

The Issue

  • On October 30, 2025, the Trump administration published a rule that ended the practice of automatically extending the validity of employment authorization documents (EADs) for individuals in certain employment authorization categories who have filed on time to renew their EAD. 
  • The automatic extension was initially implemented because of lengthy U.S. Citizenship and Immigration Services (USCIS) processing times, resulting in individuals lapsing in their work authorization before their new EADs could be issued. 
  • FWD.us estimates that ending the practice of automatically extending EADs is impacting as many as 3.8 million EAD workers in the U.S. workforce who were once eligible for automatic extensions prior to the administration’s EAD rule. These EAD holders make up about 1 in 50 U.S. workers, including 1 in 20 in construction, 1 in 25 in transportation, warehousing, and utilities, and 1 in 25 in leisure and hospitality.
  • Categories of immigrants who risk losing their work permits include refugees, those granted asylum and others applying for green cards (about 200,000 EAD workers); people who have applied for asylum (about 2.3 million); spouses of H-1B visa holders and other family members holding temporary or nonimmigrant visas (about 100,000); TPS holders and applicants (about 1.1 million), and thousands more. 
  • The individuals eligible for the automatic work authorization extension are those who have legal status, have been vetted, and have often been in the U.S. for many years or decades.

Why This Matters

  • This rule is harmful to American businesses. Removing the automatic extension subjects employers to loss of personnel and disruptions to their business operations, resulting from backlogs in the work permit renewal process and other bureaucratic inefficiencies. 
  • The most harmful impacts are in critical industries. Industries most impacted include construction (about 610,000 EAD workers once eligible for automatic extension), leisure and hospitality (about 510,000), professional and business services (about 500,000), wholesale and retail trade (about 470,000), manufacturing (about 350,000), transportation, warehousing, and utilities (about 330,000), and health services (about 200,000).
  • State workforces will bear the costs of losing authorized workers. The end of automatic extensions will contribute to worker shortages in some industries in states like Florida (about 850,000 EAD workers once eligible for automatic extension), Texas (about 490,000), and California (about 370,000).
Industry
Estimated Number of EAD Workers
Crop production62,000
Construction (the cleaning of buildings and dwellings is incidental during construction and immediately after construction)613,000
Fruit and vegetable preserving and specialty food manufacturing8,000
Animal slaughtering and processing30,000
Bakeries and tortilla manufacturing, except retail bakeries 14,000
Seafood and other miscellaneous foods, n.e.c. 10,000
Not specified food industries6,000
Fabric mills, except knit fabric mills 4,000
Cut and sew, and apparel accessories and other apparel manufacturing 5,000
Miscellaneous wood product manufacturing13,000
Not specified manufacturing industries27,000
Sugar and confectionery products4,000
Textile product mills, except carpet and rug 1,000
Pharmaceutical and medicine manufacturing9,000
Computer and peripheral equipment manufacturing2,000
Communications, audio, and video equipment manufacturing 2,000
Semiconductor, magnetic and optical media, and other electronic component manufacturing 10,000
Grocery and related product merchant wholesalers32,000
Apparel, piece goods, and notions merchant wholesalers 4,000
Not specified wholesale trade5,000
Taxi and limousine service57,000
Warehousing and storage62,000
Web search portals and all other information services3,000
Services to buildings and dwellings, except landscaping services 153,000
Landscaping services80,000
Computer systems design and related services90,000
Home health care services29,000
Traveler accommodation92,000
Car washes11,000
Commercial and industrial machinery and equipment repair and maintenance7,000
Barber shops12,000
Drycleaning and laundry services9,000
Private households44,000
Nail salons and other personal care services13,000
Animal production and aquaculture10,000
Other mining and support activities7,000
Animal food, grain and oilseed milling 1,000
Dairy products6,000
Animal slaughtering and processing7,000
Fruit and vegetable preserving and specialty foods6,000
Textile mills and products1,000
Apparel manufacturing11,000
Leather and allied products3,000
Wood products6,000
Paper manufacturing7,000
Printing and related support13,000
Petroleum and coal products3,000
Chemical manufacturing9,000
Plastics and rubber products7,000
Nonmetallic mineral products19,000
Primary metals and fabricated metal products7,000
Computer and electronic products13,000
Other transportation equipment and furniture50,000
Miscellaneous manufacturing4,000
Wholesale trade, durable goods 16,000
Wholesale trade, nondurable goods 9,000
Wholesale electronic markets and agents11,000
Motor vehicle and parts dealers33,000
Furniture and home furnishings stores14,000
Electronics and appliance stores83,000
Building material and garden supply stores24,000
Food and beverage stores27,000
Health and personal care stores18,000
Gasoline stations8,000
Clothing and accessories stores19,000
General merchandise stores15,000
Utilities7,000
Water, sewage and other systems 1,000
Air transportation9,000
Rail transportation1,000
Water transportation60,000
Truck transportation32,000
Transit and ground passenger transportation96,000
Scenic and sightseeing transportation and support activities3,000
Publishing industries5,000
Motion picture and sound recording industries10,000
Broadcasting and telecommunications12,000
Data processing and hosting services5,000
Finance and insurance55,000
Real estate and rental and leasing34,000
Professional, scientific, and technical services 78,000
Management of companies and enterprises49,000
Administrative and support services19,000
Waste management and remediation services24,000
Educational services111,000
Ambulatory health care services15,000
Hospitals27,000
Nursing and residential care facilities37,000
Social assistance55,000
Arts, entertainment, and recreation 49,000
Accommodation368,000
Repair and maintenance45,000
Personal and laundry services21,000
Religious, grantmaking, and civic organizations 19,000
Public administration27,000
Cutlery and handtool manufacturing1,000
Furniture and related product manufacturing9,000
Medical equipment and supplies manufacturing9,000
Sporting and athletic goods, and doll, toy and game manufacturing 3,000
Miscellaneous manufacturing, n.e.c. 9,000
Hardware, and plumbing and heating equipment, and supplies merchant wholesalers 2,000
Machinery, equipment, and supplies merchant wholesalers 7,000
Electronics and appliance retailers10,000
Lawn and garden equipment and supplies retailers4,000
Beer, wine, and liquor retailers 2,000
Jewelry, luggage, and leather goods retailers 4,000
Warehouse clubs, supercenters, and other general merchandise retailers 111,000
Used merchandise retailers7,000
Travel arrangements and reservation services5,000
General medical and surgical hospitals, and specialty (except psychiatric and substance abuse) hospitals 38,000
Drinking places (alcoholic beverages)5,000
Personal and household goods repair and maintenance3,000
Death care services1,000
Other personal services15,000
Source: Augmented 2024 ACS data, projected to end of fiscal 2025. See fwd.us/2024-acs-methodology for more information.
State
Total Impacted EAD holders
Working in Construction
Working in Leisure and Hospitality
Working in Wholesale and Retail Trade
Working in Professional and Business Services
Working in Transportation, Warehousing, and Utilities
Working in Manufacturing
Working in Healthcare
Working in Other Industries
Alabama16,0003,0001,0004,0002,000<1,0003,000<1,0003,000
Arizona47,0009,0004,0007,0007,0005,0003,0003,0009,000
Arkansas14,0002,0002,0001,0004,000<1,0003,000<1,0002,000
California367,00050,00047,00046,00053,00032,00029,00021,00089,000
Colorado66,0005,0008,00010,00014,0006,0004,0003,00016,000
Connecticut46,0005,0006,0004,0008,0003,0007,0002,00011,000
Delaware10,000<1,000<1,000<1,0002,000<1,0002,0001,0005,000
District of Columbia11,0001,0001,000<1,0005,000<1,000<1,000<1,0004,000
Florida852,000127,000147,000112,000101,00090,00043,00050,000182,000
Georgia141,00036,00019,00015,00022,0007,00018,0003,00021,000
Illinois124,00019,0008,00013,00017,00016,00017,0007,00027,000
Indiana47,0006,0003,0008,0002,0007,00010,0002,0009,000
Iowa15,0002,0001,000<1,000<1,000<1,0004,000<1,0008,000
Kansas18,0004,0002,0002,000<1,0001,0002,000<1,0007,000
Kentucky37,0003,0004,0007,0002,0005,00010,000<1,0006,000
Louisiana28,00011,0004,0001,0003,000<1,000<1,0002,0007,000
Maryland79,00023,00011,00012,00011,0003,0002,0005,00012,000
Massachusetts75,0009,00010,00010,00010,0005,0006,00010,00015,000
Michigan46,0009,0005,0003,0005,0005,00010,000<1,0009,000
Minnesota31,0004,0005,0005,000<1,000<1,0006,0002,0009,000
Missouri22,0003,0002,0001,0002,000<1,0005,000<1,0009,000
Nebraska32,0001,0005,0005,0002,000<1,0008,000<1,00011,000
Nevada39,00010,0008,0005,0004,0002,0003,000<1,0007,000
New Jersey187,00027,00026,00027,00024,00017,00020,00011,00035,000
New York209,00036,00026,00023,00024,00011,00010,00033,00046,000
North Carolina112,00032,00011,00011,00017,0006,00010,0002,00023,000
Ohio63,0007,0005,0007,0006,0009,00014,0003,00012,000
Oklahoma17,0005,0002,0001,0002,0002,0002,000<1,0003,000
Oregon26,0002,0002,0004,0005,0003,0005,0001,0004,000
Pennsylvania73,00010,0006,0006,00017,0005,0006,0006,00017,000
Rhode Island18,0006,0003,0001,0004,000<1,0002,000<1,0002,000
South Carolina41,00015,0008,0006,0005,0001,0002,000<1,0004,000
Tennessee55,00013,0008,0006,0008,0005,0006,0002,0007,000
Texas489,00072,00067,00064,00072,00049,00049,00015,000101,000
Utah41,0008,0006,0008,0005,0002,0006,000<1,0006,000
Virginia86,00015,00015,0009,00012,0006,0004,0004,00021,000
Washington88,0007,0008,00012,00014,0007,0006,0003,00031,000
Wisconsin39,0004,0004,0003,0002,000<1,00014,0003,0009,000
TOTAL
3,765,000
613,000
514,000
466,000
499,000
326,000
350,000
202,000
795,000
Source: Augmented 2024 ACS data, projected to end of fiscal 2025. See fwd.us/2024-acs-methodology for more information. Note: States with 10,000 or more EAD holders not included.

A Better Way Forward

  • There is a 10-year precedent for automatic work authorization extensions. In 2016, the federal government introduced the first policy granting automatic extensions of work authorization. From 2017 to 2022, this extension was for 180 days. Unfortunately, many individuals still experienced lapses in their work authorization with the 180-day extension because the processing backlogs are often more than 6 months long. In 2024, the extension was formally changed to 540 days after two years of a temporary policy demonstrated the benefits of this increased extension. This new rule ended automatic extensions in their entirety without reverting back to the 180-day extension. 
  • This is a big step backwards. Rather than streamlining a proven, cost-saving policy, the government has taken a step backward that will increase waste, reduce efficiency, and expand administrative burdens for both the public and private sectors. Eliminating automatic extensions is wasting government resources by forcing agencies to reprocess tens of thousands of unnecessary paperwork renewals and employer verifications, all to achieve the same result at greater cost.
  • Automatically extending work permits is a common-sense solution. This practice protects businesses from processing delays while allowing sufficient time for the government to complete re-vetting of applicants to ensure continued eligibility. Previous analysis by USCIS found that over a period of two years, the practice of automatically extending work authorization for 540 days prevented 800,000 individuals from having a lapse in their work authorization and saved U.S. employers $3.5 billion in labor turnover costs.

America should be building an immigration system that strengthens our economy and workforce, not creating roadblocks for people who are already an integral part of our communities.

Contact Us

Ali Procopio

Director of Education and Workforce

ali@fwd.us

Using the list of impacted groups once eligible for EAD automatic extension, likely EAD holders were selected among respondents in the 2024 American Community Survey using detailed immigration status assignments based on this methodology. With these immigration statuses, demographic characteristics of impacted groups – including their employment and age – were leveraged to match actual EAD initial and renewal approvals from administrative data for each impacted group during fiscal year 2025, allowing for sufficient time to have an initial EAD processed by mid-2026. More specifically, those adjusting to permanent residency (including refugees, asylees, admitted parents and dependent children) were selected based on top nationalities of each subgroup and likely year of entry to qualify for adjustment. Similarly, the number of TPS holders/applicants and asylum applicants, as of the end of fiscal 2025, were identified by nationality and qualifying year of entry. Spouses with nonimmigrant visas were identified based on the occupation and year of entry for their spouse with the principal work visa. Some impacted groups, each numbering less than 1,000 EAD holders or for a total population representing less than 1% of all EAD holders, could not be readily identified in the ACS and are not included in these estimates.

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