Immigration

United States | DHS proposed rule to restrict discretionary employment authorization

Summary

On June 5, 2026, the Department of Homeland Security (DHS) published a proposed rule that would significantly limit eligibility for discretionary work permits (EADs) in three categories: parole-based EADs, deferred action EADs, and EADs for people released on an Order of Supervision (OSUP) after a final removal order.

What is changing?

• OSUP holders: eligibility essentially eliminated. Going forward, this category of work permit would only be available in one narrow situation — where DHS has confirmed removal is impossible because every country it contacted refused to issue travel documents. For nearly all other applicants currently in this category, eligibility would end entirely.

• “Economic necessity” required for parole and deferred action: This requirement already applies to some categories but would now extend to parole-based applicants as well — applicants would need to show that working is necessary to meet basic living expenses.

• Favorable discretion required: Beyond meeting the basic criteria, applicants in all three categories would need to affirmatively show they deserve a favorable exercise of discretion from a USCIS officer.

• Criminal history becomes a near-automatic bar: Any arrest, indictment, or conviction — or even an admission to committing a violent or dangerous crime, regardless of formal charges — would generally result in denial, unless there is a significant countervailing public interest (such as assisting law enforcement).

• Biometrics required for applicants applying under these discretionary categories.

• E-Verify required for renewals: Renewal applicants must be working for, or seeking work with, an employer enrolled in E-Verify.

• One-year validity period, after which reapplication or renewal is required.

• Automatic termination triggers, including any final removal order or termination/denial of the underlying status (e.g., parole ends, asylum application denied).

Who would this impact?

The proposed rule would impact significant impact EAD eligibility for individuals who currently hold or are applying for work authorization based on parole, deferred action, or an order of supervision — especially if the individual has any criminal history or if they are relying on the OSUP category specifically.

Who is not affected?

DACA recipients and deferred action based on a pending bona fide T-visa application are excluded from these changes (though the biometrics and criminal history provisions would still apply).

What’s next?

DHS is accepting public comments on this proposed rule through August 4, 2026.

Any individual or organization may participate in the rulemaking process by submitting feedback, including support, concerns, or alternative policy proposals. Comments can be submitted through https://www.regulations.gov by searching “DHS Docket No. USCIS-2026-0067.”

All comments are generally made publicly available, and DHS is required to review and respond to relevant submissions before issuing a final rule. This process provides an important opportunity for stakeholders, including employers and industry groups, to shape the final outcome of the regulation.

Vialto will continue to monitor developments and provide updates as they become available.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

W. Marcus Hobson
Senior Associate, Attorney

Want to know when a regional alert is posted?

Simply follow our Vialto Alerts page on LinkedIn and posts will be displayed on your feed. To ensure you don’t miss one, once you’re on our LinkedIn page, click on the bell icon under the banner image to manage your notifications.

Further information on Vialto can be found here: www.vialtopartners.com

Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

© 2026 Vialto Partners. All rights reserved.