DHS Proposes Eliminating 60-Day Grace Period for H-1B, L-1 and Other Nonimmigrant Workers
Updated: 1 hour ago
WASHINGTON, September 11, 2026 — The Department of Homeland Security (DHS) has formally proposed a regulation that would eliminate the discretionary 60-day grace period currently available to certain nonimmigrant workers and their dependents whose employment ends before their authorized period of stay expires.
The proposal was published in the Federal Register on September 11, 2026, opening a 60-day public comment period. The rule will not take effect until DHS reviews public feedback and issues a final rule with a specific implementation date.
Published: September 11, 2026 | By VisasUpdate.com Editorial Team
What the Proposed Rule Would Do
If finalized, the regulation would eliminate the maximum 60-day grace period currently accorded to principal nonimmigrants in the following visa categories, along with their dependents:
Visa Category | Description |
E-1 | Treaty Traders |
E-2 | Treaty Investors |
E-3 | Australian Specialty Occupation Workers |
H-1B | Specialty Occupation Workers |
H-1B1 | Free Trade Agreement Professionals (Chile/Singapore) |
L-1 | Intracompany Transferees |
O-1 | Individuals with Extraordinary Ability |
TN | NAFTA/USMCA Professionals |
Under the proposal, affected foreign nationals whose employment ceases prematurely would no longer be maintaining status and would generally be required to depart the United States immediately, unless they have separate authorization to remain.
Background: The 60-Day Grace Period
The discretionary grace period was created by regulation in 2016 and took effect in early 2017.
Aspect | Details |
Maximum Duration | The shorter of 60 days OR until the principal's I-94 expiration date |
Availability | Once during each authorized petition validity period |
Applies To | Voluntary or involuntary employment cessation |
Purpose | Mitigate negative immigration consequences of job loss |
Recent Trend | Refusals have become more common in recent months |
The grace period was designed to allow affected individuals to:
Seek other employment in the same nonimmigrant category
Change to a different immigration status
Prepare for orderly departure from the United States
What Happens If the Rule Is Finalized?
DHS acknowledges in its proposal that eliminating the grace period could result in some affected foreign nationals receiving Notices to Appear (NTA) — the government's first step in initiating removal (deportation) proceedings.
The prospect of NTA issuance may be more likely for individuals in categories that require an employer to immediately notify the government when employment ceases, including:
H-1B
O-1
P (Athletes, Artists, Entertainers)
Additionally, Department of Labor regulations require USCIS notification to end Labor Condition Application (LCA) wage obligations related to H-1B, H-1B1, and E-3 employment termination.
Impact on Workers and Employers
Stakeholder | Potential Impact |
H-1B Workers | Immediate loss of status; no time to find new employer |
Dependents (H-4, L-2, etc.) | Also lose status and must depart |
US Employers | May lose talent quickly; less flexibility for transfers |
Families | Housing disruption, children's schooling affected |
E-1/E-2/E-3/TN Workers | Treaty-based workers face same immediate departure risk |
DHS Justification
According to DHS, the proposal would "reduce the administrative burden associated with administering the grace period." The agency has not elaborated on how the change would affect the estimated 600,000+ H-1B visa holders currently in the United States or their dependents.
What's Next
Step | Timeline |
Publication in Federal Register | September 11, 2026 |
Public Comment Period | 60 days |
Final Rule | After DHS reviews comments |
Effective Date | Specified in final rule |
Important: The proposal does not have immediate impact on employers or foreign nationals. It will not take effect until DHS reviews public feedback and publishes a final regulation.
How to Submit Comments
Once the proposal is published, employers and individuals will have the opportunity to submit comments to DHS. The views of employers will be important to inform the government of the impact on the business community.
Comment Submission: regulations.gov
Read More
Official Resources
Resource | Link |
Federal Register – Proposed Rule | |
Regulations.gov – Comment Portal | |
USCIS – H-1B Information | |
DHS – Proposed Rule Announcement |
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