The Donald Trump administration announced on September 10, 2026, a proposal to eliminate the existing 60-day grace period for H-1B visa holders and individuals on other work visas after employment termination. The notice will be published in the Federal Register on September 11, 2026, and affects visa categories including H-1B, H-1B1, E-1, E-2, E-3, L-1, O-1, and TN nonimmigrants as well as their dependents.
Background on the 60-Day Grace Period
The discretionary 60-day grace period was introduced in 2016 during the Obama administration to enhance job portability and provide high-skilled foreign workers flexibility and stability while transitioning between employers. It allows workers to remain in the
United States to seek new employment or change visa status after losing a job without immediately leaving the country. Currently, U.S. law authorizes 65,000 H-1B visas annually, with an additional 20,000 for holders of advanced U.S. degrees.
From fiscal year (FY) 2021 to FY 2025, a total of 328,758 primary H-1B visa beneficiaries exited employment or changed employers, with only 5.77% filing a new petition from a different employer. In 2025 alone, 65,752 beneficiaries experienced employment cessation or voluntary job change, with a high of 80,034 in FY 2023 and a low of 40,959 in FY 2021.
Scope of Impact and Key Employers
The proposed rule
targets multiple work visa categories, including H-1B1 visas issued to workers from Singapore and Chile, and E-3 visas for Australians. Major U.S. companies sponsoring H-1B workers include consulting firms Deloitte, PwC, Ernst & Young, and technology service providers Tata Consultancy Services, Infosys, HCLTech, and LTIMindtree. The technology sector heavily depends on foreign skilled workers, particularly from India and China.
Implications for Workers and Employers
If the rule is finalized, workers would be required to leave the United States immediately after losing employment instead of having the current 60-day period to find new work or apply for status adjustments. Foreign workers remaining in the U.S. post-termination
without a new petition may receive Notices to Appear (NTA), initiating removal proceedings. This change would also affect visa holders’ dependents.
Berardi Immigration Law noted the proposal “sharply compress[es] the timeline HR teams have to manage layoffs and offboarding for foreign national employees,” complicating workforce transitions. Workers would need to reapply for visas through U.S. embassies or consulates abroad after securing new job offers.
Official Statements and Ongoing Public Comment
The Department of Homeland Security (DHS), which is managing the public consultation, stated: “This 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 further observed that employers would either “offer the same jobs to equally qualified US workers or go through the I-129 petition process depending on their workforce requirement.”
Todd Schulte, president of immigration advocacy group FWD.us, criticized the move, 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.” Gabriel Chin, a law professor at UC Davis, remarked on the hardship faced by long-term
workers, stating, “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.”
The DHS will accept public comments on the proposed rule for 60 days following its publication in the Federal Register. The rule is not yet finalized.
