The US Department of Homeland Security (DHS) announced on September 10, 2026, a proposal to eliminate the discretionary 60-day grace period currently allowed to H-1B visa holders and other temporary work visa categories after job termination. The new rule, published in the Federal Register on September 11, 2026, covers E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants and their dependents.
Background and DHS Objectives
The 60-day grace period was established in 2016 under Obama-era regulations to improve job portability and flexibility for high-skilled foreign workers in the US. It allowed visa holders to remain in the country after employment ended to seek
new employers or adjust status without immediate departure. DHS stated the elimination of this grace period “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.”
Impact on Visa Holders and Employers
If finalized, workers on the affected visa categories will be required to leave the US immediately following employment termination and apply for a new visa at a US embassy or consulate abroad once a new job offer is secured. This significantly reduces the window for job transitions and
imposes compressed timelines for HR departments to manage layoffs and offboarding of foreign employees, according to Berardi Immigration Law. The loss of the grace period heightens the risk of removal proceedings, as Notices to Appear (NTA) may be issued more quickly when employment ceases.
Affected Visa Holder Numbers and Petition Trends
Between fiscal years 2021 and 2025, 5.77% of 328,758 primary beneficiaries on these visas either lost their jobs or switched employers and had a new petition filed on their behalf. In 2025 alone, DHS estimated that 65,752 visa holders experienced job cessation or change, with a peak of 80,034 affected in fiscal 2023 and a low
of 40,959 in 2021. The US issues 65,000 H-1B visas annually, plus 20,000 additional for US advanced degree holders.
Industry Reliance and Immigration Policy Context
US technology companies heavily depend on H-1B visas to employ skilled workers, predominantly from India and China. Major sponsors include consultancy firms Deloitte, PwC, Ernst & Young and outsourcing companies like Tata Consultancy Services, Infosys, HCLTech, and LTIMindtree. The Trump administration has pursued multiple immigration restrictions since returning to office in January 2025, including this proposal and increased visa fees targeting skilled workers.
Todd Schulte, president of immigration advocacy group FWD.us, criticized the policy, stating, “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.”
Official Statements and Expert Opinions
DHS emphasized the proposal’s goal to align visa status strictly with employment terms, noting, “DHS presumes that they will either offer the same jobs to equally qualified US workers or go through the I-129 petition process depending on their workforce requirement.” Gabriel Chin, a UC Davis law professor, highlighted the personal toll, saying, “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 at Berardi Immigration Law pointed out the operational challenges, warning the rule change would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees.” The DHS is accepting public comments on this proposal during a 60-day window following its announcement.
