Employer letting me go because spouse has foreign contacts

I got hired for a position which requires TS/SCI or just TS. Before I got hired, I had Secret clearance, and I have only U.S. citizenship. I worked with them for two weeks and now they are telling me I have to look for other employment because my spouse has dual citizenship and contact with her family from a different country. All of this information I provided to them prior to me starting the job and after accepting the offer. Even after exploring the option of renouncing citizenship from a foreign country for my spouse, they are firm on their decision because of the foreign contact part. While there is enough collateral work for me to do without the SCI clearance, the executives made their decision.

Is this legal? If so please explain or share any similar instances you had or heard of. Thank You.

P.S. I just got cleared for an interim TS after 2 weeks of submitting my SF86.

Depending on the state, yes. Some states are at will, meaning they can terminate you without any reason.

National security always comes first.

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If their government customer made that request they have to abide and remove you from the contract. The customer might also have that requirement for everyone working on the contract. If your company has no other contracts for you to work on…and they can’t afford to keep you on because they have no work for you, they may have no choice.