On September 10, 2026, the Department of Homeland Security (DHS) announced a proposal to eliminate the 60-day grace period currently granted to holders of H-1B and other temporary work visas who lose their employment in the United States. This rule would affect visa categories including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, TN nonimmigrants, as well as their dependents.
Background of the 60-Day Grace Period
The 60-day grace period was introduced in 2016 during the Obama administration to improve job portability and stability for high-skilled immigrant workers. It permitted visa holders to remain in the US for up to 60 days following termination of employment to
seek new employers or make arrangements to leave the country. The discretionary grace period aimed to ease workforce transitions and support US employers in retaining skilled talent.
Department of Homeland Security Data on Affected Visa Holders
DHS estimates indicate that from fiscal years 2021 to 2025, a total of 328,758 primary beneficiaries on these visa categories either lost their jobs or changed employers. In 2025 alone, 65,752 such cases were recorded, with a peak of 80,034 in fiscal year 2023 and a low of 40,959 in 2021. Of these individuals, approximately 5.77% submitted new petitions for employment with another US employer during this period.
Consequences for Visa Holders
If finalized, the proposal would
require visa holders to depart the United States immediately upon losing their jobs, without the existing 60-day period to find a new position. Consequently, affected foreign workers must obtain new employment offers and apply for fresh visas at US embassies or consulates abroad. This may lead to an increase in Notices to Appear (NTAs), which initiate removal proceedings against those who remain without valid status.
Official Statements and Expert Commentary
The Department of Homeland Security stated that the proposal “restores a direct relationship between an alien’s nonimmigrant status and the specific employment or activity that formed the basis of his or her admission or grant
of status in the United States and reduces administrative burden.” DHS also indicated that employers will either offer available jobs to qualified US workers or complete the I-129 petition process based on workforce needs.
Gabriel Chin, a professor at UC Davis School of Law, expressed opposition to the policy, noting, “Many H-1B workers have been here for years, and they and their families have established themselves in their communities. I see no legitimate reason to force them to leave because they are changing jobs.” Lawyers from Berardi Immigration Law highlighted that the change would “sharply compress the timeline HR teams
have to manage layoffs and offboarding for foreign national employees.” Todd Schulte, president of the immigration advocacy group FWD.us, criticized the move as part of ongoing efforts by the administration to complicate life for immigrants and related businesses.
Impact on US Tech Industry and Visa Use
H-1B visas are essential for US technology and consulting companies to employ skilled workers primarily from India and China. Leading H-1B sponsors include consulting firms such as Deloitte, PwC, and Ernst & Young, as well as outsourcing companies like Tata Consultancy Services, Infosys, HCLTech, and LTIMindtree. The US sets an annual cap of 65,000 H-1B visas, with an additional 20,000 issued to
workers holding advanced US degrees. This proposal comes amid broader immigration policy tightening, including higher visa fees and suspension of immigrant visa appointments implemented since President Donald Trump resumed office in January 2025.
