US Moves to Eliminate 60-Day Grace Period for H-1B & Other Workers After Job Loss
- Editorial Team
- 23 hours ago
- 4 min read
Updated: 6 hours ago
WASHINGTON, August 28, 2026 — The Department of Homeland Security (DHS) has taken a significant step toward eliminating the 60‑day grace period that allows H‑1B and other nonimmigrant workers to remain in the United States after losing their jobs, clearing a key regulatory hurdle that could force thousands of foreign professionals to leave the country immediately upon termination .
The proposed rule, titled "Eliminating the Discretionary 60‑day Grace Period" (RIN 1615‑AD22), was submitted to the White House Office of Management and Budget (OMB) on August 6, 2026, and has now cleared federal review . The next step is publication in the Federal Register for a public comment period, typically 30 or 60 days .
Published: August 28, 2026 | By VisasUpdate.com Editorial Team
What the Proposed Rule Would Do
If finalized, the regulation would eliminate the discretionary 60‑day grace period currently available to certain nonimmigrant workers whose employment ceases before their authorized period of stay expires .
Visa Categories Affected | Key Impact |
H-1B (specialty occupations) | No grace period after job loss |
L-1 (intra‑company transferees) | Immediate loss of status |
O-1 (extraordinary ability) | Must depart immediately or seek USCIS discretion |
E-1, E-2, E-3 (treaty traders/investors) | Dependents also lose status |
TN (NAFTA professionals) | No time to find new employer |
Without the grace period, affected foreign nationals and their dependents would generally be required to depart the United States immediately, unless USCIS exercises its separate discretion to forgive the lapse in status and allow a change of status or employer within the country .
Background: The 60‑Day Grace Period
The discretionary 60‑day grace period was established by regulation in 2016 and took effect in early 2017 . It was designed to mitigate the negative immigration consequences of employment loss by allowing 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
The grace period applies whether the employment cessation is voluntary or involuntary and is available once during each authorized petition validity period . DHS has the discretion to shorten or refuse the grace period, but rarely did so until recent months, with refusals becoming more common .
"The 60-day grace period provides H-1B workers with a crucial opportunity to secure a new employer and maintain the lives they have established in the United States. These individuals often have mortgages or leases, car payments, and children in school. Without this grace period, an unexpected job loss would not only mean unemployment but could also immediately jeopardize a family's ability to stay in the United States."— Ana Gabriela Urizar, Immigration Attorney, Manifest Law
Impact on Workers and Families
Stakeholder | Potential Impact |
H‑1B Workers | Immediate loss of status; no time to find new employer |
Dependents (H‑4) | Also lose status and must depart |
US Employers | May lose talent quickly; less flexibility for transfers |
Families | Housing disruption, children's schooling affected |
There are approximately 600,000 to 730,000 active H‑1B visa holders in the United States, with an estimated 550,000 dependents (spouses and unmarried children under 21) on H‑4 visas .
Ajay Bhutoria, a former member of the President’s Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders, strongly condemned the proposal:
"Removing the 60-day grace period is both inhumane and impractical. When a worker is suddenly terminated, 60 days was already a dangerously brief time. Eliminating this safeguard entirely leaves thousands of law-abiding individuals with no time to organize their affairs. They won't even have the opportunity to sell their homes, handle their leases, or transition their children out of schools. Families will be uprooted overnight, thrown into chaos through no fault of their own after years of hard work and tax contributions to this country."— Ajay Bhutoria, Former White House Advisor
Next Steps in the Regulatory Process
Step | Timeline |
OMB Review Completed | August 2026 |
Publication in Federal Register | Expected soon |
Public Comment Period | 30 or 60 days after publication |
Final Rule | Several months after comment period |
Important: The 60‑day grace period remains in effect while the rule continues through the rulemaking process . The regulation will not take effect until public comments are considered and the rule is finalized, which typically takes several months .
How to Submit Comments
Once the proposal is published, employers and individuals will have the opportunity to submit comments to DHS. Feedback from the business community will be important to inform the government of the impact on employers and workers .
Read Also
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