Temporary Protected Status (TPS) will end for 2,500 Nicaraguans who had been living in the US under the program, and will have 14 months to leave the country, the Washington Post reported Monday.
The program was extended to both countries after Hurricane Mitch hit Central America in 1998.
These groups are also in the country under the TPS program.
"We are looking at the fact that temporary protected status means temporary, and it has not been temporary for many years", DHS spokesman David Lapan said earlier this month.
More than 5,000 Nicaraguans and about 85,000 Hondurans are beneficiaries of that program.
Under the programme, they are allowed to work and many have raised families in the United States.
Acting Department of Homeland Security (DHS) Secretary Elaine Duke will terminate the TPS designation for Nicaragua "with a delayed effective date of 12 months to allow for an orderly transition before the designation terminates on January 5, 2019", according to a press release sent on Monday night. TPS for Haitians expires January 22, 2018, and for Salvadorans, March 9, 2018. She said that there is a lot uncertainty, especially for those with little options to adjust their status and get permanent residency.
Given that numerous TPS recipients have been in this country for decades, administration officials said the White House would look to Congress to offer a permanent solution for TPS holders. The department added that the Nicaraguan government had not requested that the programmed be extended.
The decision affects about 2,500 Nicaraguans, many of whom have lived in the USA for almost two decades, raising US-born children. Nearly 200,000 Salvadorans can lose TPS status as compared to the 30,000 Salvadorans who have DACA, according to figures on the Department of Homeland Security's website.
The Trump administration is expected to make similar announcements for 50,000 Haitian TPS recipients by November 23, 2017 and 195,000 Salvadoran TPS recipients by January 8, 2018.
During the background call with reporters, senior administration officials emphasized that the USCIS agency - the organization overseeing TPS designation - would not "proactively share information with the U.S. Immigration and Customs Enforcement (ICE) regarding the expiration of TPS". DHS can renew the program for up to 18 months at a time. "They are the fabric of our communities, and our economies and our industries", said Maria Rodriguez of the Florida Immigrant Coalition. But while the country continues to suffer from extreme poverty, Kelly told members of Congress this summer that conditions for which TPS was granted have largely been resolved.