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My parents arrived in the USA for 3 months initially, but because of COVID they had to file for an extension for their B-2 stay. They filed for the extension in April and they are waiting on USCIS to give a decision on the B-2 extension.

While they are waiting for a decision from USCIS, can they travel to Canada or Mexico? If so, what does that mean for the B-2 visa? Can they get another I-94 with an extended date?

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They can travel to Canada or Mexico, but if they do so they will abandon their application for extension of status. Any subsequent attempt to enter the United States will be treated as a new application for admission in B-2 status.

In theory, this looks attractive because yes, they can indeed get a new I-94 with an extended date. Another possibility, however, is that they will be refused entry and either returned to Canada or Mexico or removed to their country of citizenship.

It should also be noted that if their visas have expired, they'll need to return to the US within 30 days, thanks to automatic revalidation, or else apply for a new visa while they are outside the US.

It's safer to avoid leaving the United States.

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