The US Department of Homeland Security (DHS) announced on September 10, 2026, a proposal to eliminate the 60-day discretionary grace period currently given to certain foreign workers, including H-1B visa holders, after job termination. The official proposal will be published in the Federal Register on September 11, 2026, and includes visa categories E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants and their dependents.
Background of the 60-Day Grace Period
The 60-day grace period was introduced under Obama-era rules in 2016 to allow high-skilled foreign workers more flexibility to find new employment within the United States without immediate departure. This period applies regardless of whether
job separation was voluntary or involuntary. The proposal seeks to remove this grace period, requiring affected workers to leave the US immediately upon employment cessation.
Numbers of Affected Workers and Visa Details
According to DHS data, 65,752 primary beneficiaries experienced job loss or voluntary employer changes in 2025, with a peak of 80,034 in fiscal year 2023 and a low of 40,959 in 2021. Only 5.77% of 328,758 affected workers from 2021 to 2025 had new petitions filed by new employers. US law caps H-1B visas at 65,000 annually, with an additional 20,000 reserved for advanced degree holders from US institutions. Major H-1B sponsors include Deloitte, PwC,
Ernst & Young, Tata Consultancy Services, Infosys, HCLTech, and LTIMindtree.
DHS Justifications and Industry Reactions
The DHS stated 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 added affected employers will either offer vacated positions to equally qualified US workers or submit new I-129 petitions for foreign workers. Legal experts like Berardi Immigration Law warned the rule “sharply compress[es] the timeline HR teams have to manage layoffs and offboarding for foreign national employees.” Todd Schulte,
president of FWD.us, criticized the administration’s approach, saying, “It seems like every week this administration announces a new step to make life more difficult for immigrants in the US and the companies and communities that rely on them.” UC Davis Law professor Gabriel Chin stated, “Many H-1B workers have been here for years, and they and their families have established themselves in their communities,” adding he sees “no legitimate reason to force them to leave because they are changing jobs.”
Implications for Visa Holders and Employers
If finalized, the removal of the grace period would require H-1B and other affected work visa holders to depart the
United States immediately after losing employment. They must secure a new job offer and apply for a new visa from outside the US before returning. The affected categories include H-1B, H-1B1 (Singapore and Chile), E-1, E-2, E-3 (Australia), L-1, O-1, and TN visa holders and their dependents. The elimination of the grace period could lead to issuance of Notices to Appear, initiating removal proceedings. The accelerated timeline limits HR departments’ ability to manage layoffs and offboarding of foreign national employees.
Broader Immigration Context and Public Input
The proposal forms part of the Trump administration’s broader immigration restrictions since January 2025, including higher visa fees and suspending
immigrant visa appointments globally pending a new training program. DHS has opened a 60-day public comment period following the September 11 publication in the Federal Register to collect opinions on the proposed rule.
