Loss of work permits, removal from country: DHS sets strict penalties for unpaid asylum fees

The US Department of Homeland Security (DHS) has unveiled new immigration fee rules under the H.R. 1 Reconciliation Act of 2025, warning that asylum seekers who fail to pay a newly introduced annual charge could face rejection of their cases, loss of work permits and possible removal from the country.The interim final rule is aimed at implementing funding measures under what is formally called the ‘One Big Beautiful Bill Act’. It introduces a range of new fees and stricter requirements for immigration applications, with a focus on asylum claims and related services.A key change is the Annual Asylum Fee (AAF), which must be paid each year while an asylum application remains pending. US Citizenship and Immigration Services (USCIS) will notify applicants when payment is due. If the fee is not paid within 30 days of notification, the asylum application will be rejected.

According to the rule, applicants without legal status in US may also be placed into removal proceedings if they fail to pay. Further consequences follow if an asylum application is rejected. USCIS will deny any pending Form I-765 applications for employment authorisation linked to the asylum claim, and any previously approved work permission based on that application will be terminated immediately.The changes stem from a Federal Register notice published on 22 July 2025, which introduced both the asylum application filing fee and the annual charge.The rule also brings additional changes to other immigration processes. USCIS will now retain the filing fee for Form I-589, Application for Asylum and for Withholding of Removal, even if the application is rejected as improperly filed. Temporary Protected Status (TPS) holders will see employment authorisation limited to one year or the remaining period of their designation, whichever is shorter.Another change introduces a minimum $24 filing fee for Form I-102, Application for Replacement/Initial Nonimmigrant Arrival-Departure Document, on top of any other applicable charges.The new framework takes effect on 29 May 2026. From that date, USCIS will reject Form I-102 applications submitted without the correct fee. It will also reject pending asylum applications if the Annual Asylum Fee has not been paid.DHS has confirmed that it will accept public comments on the rule until 29 June 2026, as the implementation process moves forward.