Apparently, this rumor is serious enough that Senators Grassley, Hatch (R-Utah), Vitter (R-La.), Bunning (R-Ky.), Chambliss (R-Ga.), Isakson (R-Ga.), Inhofe (R-Okla.), and Cochran (R-Miss.) sent President Obama a letter.
According to Numbers USA...
Several Senators have learned of a possible plan by the Obama Administration that would provide a mass Amnesty for the nation's 11-18 million illegal aliens. Led by Sen. Chuck Grassley (R-Iowa), eight Senators addressed a letter to the President asking for answers to questions about a plan that would allow DHS Secretary Janet Napolitano to provide an amnesty if they can't secure enough votes for a bill in the Senate.
Senate Letter to Obama on Amnesty
Ah, just in time for the mid-term elections.
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776