A Department of Homeland Security proposal that could strip hundreds of thousands of foreign workers of a critical safety net after job loss has cleared a key White House regulatory hurdle — bringing the measure one step closer to becoming law.
The Office of Information and Regulatory Affairs, part of the Office of Management and Budget, completed its review on August 27, 2026, according to the federal regulatory record.
The proposal, titled "Eliminating the Discretionary 60-day Grace Period" (RIN 1615-AD22), was sent to OIRA for review on August 6, 2026.
The plan to eliminate the 60-day window for H-1B workers to find new employment after a job loss has received approval from a key White House office, signaling its public release soon.
What the Proposal Would Change
Since 2017, eligible H-1B workers who lose their jobs have generally been granted up to 60 days, or until the end of their authorized stay, whichever comes first, to find a new sponsoring employer, change immigration status, or depart the United States.
The policy was introduced to provide workers with a reasonable period to address an unexpected employment termination without immediately falling out of status.
The grace period, codified at 8 CFR 214.1(l)(2), was a signature provision of a January 2017 final rule.
Up until January 17, 2017, whenever workers in nonimmigrant status got terminated, they were immediately considered to be in violation of status, and there was also no grace period to depart the United States.
The proposal would eliminate the 60-day grace period currently available to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants (and their dependents) when the principal's employment ends before their authorized stay expires.
Where Things Stand in the Rulemaking Process
It is crucial for affected workers and employers to understand that no changes have taken effect yet.
The 60-day grace period has not already ended; the measure is still a proposed rule and must move through additional steps before a change can take effect.
OIRA completed its review of RIN 1615-AD22 on August 27, 2026, with the result "Consistent with Change."
The official OIRA record still classifies the measure as a proposed rule and lists no publication date.
Proposed rules are only published in the Federal Register after OIRA completes its review. Now that OIRA has finished its review, publication is the next step, but the specific provisions — including exactly what would replace the current grace period — are not yet known.
Once published,
the next step is publication in the Federal Register for a public comment period, typically 30 or 60 days.
Only after DHS reviews those comments would a final rule be issued with an effective date.
H-1B workers whose employment ends today are generally still able to use up to 60 days to find a new sponsoring employer, change status, or depart the United States.
Who Would Be Affected
The scope of this proposed rule is sweeping.
If finalized, this would affect H-1B, H-1B1, L-1, O-1, TN, E-1, E-2, and E-3 workers, and it would sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees.
The numbers are staggering.
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.
The affected population includes a large Indian professional community — Indian nationals accounted for approximately 71% of all approved H-1B petitions in 2024.
Dependants can also be affected because their status is generally tied to that of the principal worker. Immigration lawyers say the proposed change could therefore have consequences not only for employees but also for their families.
Practical Implications for Workers and Employers
The potential consequences of this rule change are profound.
For workers with families, mortgages, school-enrolled children, or pending green card processes tied to their current employer, that compression carries real consequences beyond the immigration paperwork itself.
Under current rules, a laid-off H-1B worker can use the 60-day window to have a new employer file an H-1B transfer petition, file a change of status to B-2 visitor status, or arrange an orderly departure from the country.
Removing the grace period could make those transitions much harder. Employers could have less opportunity to recruit people who are already in the United States but whose previous employment has ended. Families could also face more pressure to make decisions about housing, schooling, and departure arrangements.
Manifest immigration attorney Ana Gabriela Urizar says removing it would mean an immediate loss of legal status for anyone hit by a layoff.
Community leaders have already voiced strong opposition.
Ajay Bhutoria, a former member of the President's Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders, strongly condemned the proposal.
Supporters argue that eliminating the protection would prevent misuse, while critics say it would create immigration cliffs for workers who complied with the rules.
For employers, the stakes are equally high.
Employers with large H-1B, L-1, or TN populations should begin tracking this proposal now, since its eventual finalization would materially compress
the time available to manage workforce transitions involving foreign national employees. Companies conducting layoffs or restructuring would need to completely rethink their offboarding procedures.
What Workers and Employers Should Do Now
While the current grace period remains fully in effect, immigration attorneys across the country are urging proactive planning. Here are key steps to consider:
- Stay informed. Monitor the Federal Register for publication of the proposed rule text.
- Plan under current rules.
- Review contingency plans.
- Consult an immigration attorney. Given the magnitude of this potential change, workers in employment-based visa categories should consult with qualified legal counsel to understand their individual exposure and explore options such as concurrent green card processing or backup status strategies.
The Bigger Picture
The proposed elimination of the 60-day grace period marks a potentially significant shift in how the United States manages employment-based immigration.
Immigration attorneys and advocacy groups are closely monitoring developments, as the proposal could represent one of the most consequential changes to employment-based immigration policy in recent years.
The unpublished proposal does not yet provide enough information to say exactly how individual cases would be handled, whether exceptions would apply, or what would happen to someone already using a grace period when a future rule takes effect.
The public comment period, once the rule is published, will provide a formal avenue for stakeholders — workers, employers, advocacy organizations, and the public — to weigh in. Given the scale of the affected population and the practical consequences involved, this rulemaking is expected to generate significant public engagement.
ClinchLaw will continue to monitor this development closely and provide updates as the proposed rule is published. If you are an H-1B, L-1, O-1, TN, or other employment-based visa holder with questions about how this proposal may affect you, we encourage you to contact our team for a consultation.