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Regulatory Update: Federal Court Restores TPS for Honduras, Nepal, and Nicaragua

Published: January 5, 2026 by Legislative Update

On December 31, 2025, U.S. District Judge Trina Thompson issued a significant nationwide injunction, voiding the Department of Homeland Security’s (DHS) previous decision to terminate Temporary Protected Status (TPS) for approximately 60,000 to 89,000 nationals from Honduras, Nepal, and Nicaragua.

For employers, this means immediate changes to how Employment Authorization Documents (EADs) for these employees must be handled during the Form I-9 process.

Current Status and Employer Requirements (2026)

As of January 1, 2026, the following legal protections are in place:

  •  TPS status and work authorizations for eligible nationals from Honduras, Nepal, and Nicaragua are fully reinstated.
  • Employers are legally required to honor the Employment Authorization Documents (EADs) of affected TPS holders. Even if a card appears expired on its face, it may be subject to an automatic extension by operation of this court order.
  • Federal officials and employers are barred from taking adverse actions, such as termination or detention based solely on the previously announced (and now voided) termination dates for these specific countries.

What This Means for Form I-9 Compliance?

  • Employers should review their active Form I-9 files for employees who previously presented TPS-based EADs from these three countries.
  • Do Not Terminate: If an employee’s work authorization was set to expire due to the now-voided DHS termination, they remain authorized to work.
  • Monitor for USCIS Guidance: We expect USCIS to publish a formal Federal Register notice shortly providing specific instructions on “Additional Information” notations for Section 2 of the Form I-9.
  • Note that the government may appeal this decision to the Ninth Circuit. However, the injunction remains in effect nationwide until further notice.

Note: For specific EAD auto-extension dates and official documentation to keep with your I-9 records, please refer to theUSCIS Temporary Protected Status page.

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The Experian Employer Services Insights blog focuses on providing updates and solutions for HR teams, business owners, tax pros and compliance officers looking to navigate complex regulatory landscapes while optimizing their workforce management processes. Some important topics include payroll tax, unemployment, income & employment verification, compliance, and improving the overall employee experience.