DHS Proposes Work Authorization Restrictions for Parole, Deferred Action and OSUP Populations

Key Point  

• DHS proposes major restrictions on work authorization for parolees, deferred action recipients and individuals with removal orders—including new eligibility limits, economic need requirements and employer E‑Verify mandates. 

Work Authorization Restrictions for Parole, Deferred Action, and OSUP Populations

The Department of Homeland Security (DHS) has issued a proposed rule to amend regulations governing discretionary employment authorization for certain foreign nationals. 

The proposal would apply to individuals currently eligible under the following categories: 

• Parole (c)(11)
• Deferred action (c)(14)
• Order of supervision following a final removal order (c)(18)

DHS proposes to limit and clarify eligibility, standardize requirements, and reinforce discretionary adjudication for these work authorization categories.

Key Work Authorization Changes 

Discretionary Standard Clarified 

DHS proposes that foreign nationals must demonstrate they warrant a favorable exercise of discretion when applying for or renewing work authorization.

The rule states that, generally, discretion would not be favorably exercised where an applicant:

• Has been arrested, charged, indicted or convicted of a criminal act, or
• Is associated with violent crime, gangs or terrorism,

unless there are significant countervailing public interest considerations.

Economic Necessity Requirement 

The proposal would require all affected applicants to establish economic necessity for employment.

This requirement would apply across parole, deferred action, and OSUP categories, creating a consistent standard for work authorization eligibility.

E‑Verify Requirement for Renewals 

For renewal applications, foreign nationals must be: 

• Employed by, or seeking employment with,
• An employer enrolled in E‑Verify in good standing

Biometrics and Background Checks 

All applicants would be required to:

• Submit biometric information, and
• Undergo identity verification and criminal background checks

Shortened Validity Periods 

DHS proposes to limit work authorization validity to: 

• Up to one year, or
• The duration of the underlying status, if shorter

Automatic Termination of Work Authorization 

Employment authorization automatically terminates when:

• DHS issues a final order of removal, or
  DHS terminates or denies the underlying basis for the benefit (such as parole or deferred action)

Changes for Foreign Nationals with Final Orders of Removal (c)(18) 

The proposed rule would significantly narrow eligibility for work authorization under the order of supervision (OSUP) category. 

DHS would limit eligibility to cases where it determines removal is impracticable, such as when all countries from which it has requested travel documents have failed to issue them.

Applicants must also: 

• Comply with conditions of supervision 
• Demonstrate economic necessity 
• Warrant a favorable exercise of discretion 

DHS indicates this exception would apply to a limited population of foreign nationals.

Impact on Parole and Deferred Action Populations 

For foreign nationals with parole or deferred action, the proposal would: 

• Apply new uniform eligibility requirements (economic necessity and discretionary review)
• Introduce E‑Verify requirements for EAD renewals
• Maintain DHS discretion to approve or deny applications case by case

Purpose of the Proposal 

DHS states the proposed rule is intended to: 

• Limit and clarify discretionary work authorization eligibility
• Align EAD issuance with immigration enforcement priorities
• Establish consistent standards across categories
• Support consideration of impacts on the U.S. labor market

Next Steps 

• Public comments are due August 4, 2026
• The rule would apply to applications filed on or after the effective date of a final rule

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