In a pair of significant actions announced on August 7, 2026, the Department of Homeland Security is moving to strip a critical safety net from nonimmigrant workers and increase filing costs for employers — developments that could reshape how companies hire and retain foreign talent in the United States.
The End of the 60-Day Grace Period?
DHS is reviewing a proposed rule that could eliminate the 60-day grace period currently available to certain nonimmigrant workers, including H-1B visa holders, after their employment ends.
On August 6, 2026, the agency sent the proposal, titled "Eliminating the Discretionary 60-Day Grace Period" (RIN 1615-AD22), to the White House's Office of Information and Regulatory Affairs (OIRA) for review.
The contents of the proposed rule are not public yet and remain under White House review.
If OIRA approves it, DHS will then publish it in the Federal Register.
The existing grace period was introduced in 2017 and covers several nonimmigrant categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN workers, along with eligible dependents.
Under the current rules, eligible workers can remain in the U.S. for up to 60 days, or until the end of their authorized stay if that comes sooner, after their employment is terminated. During that period, workers can look for another qualifying job, transfer to a new employer, or in some cases seek a change in immigration status without immediately leaving the country.
Elimination would mean a reversion to standards that existed prior to 2017.
A Devastating Impact on Workers and Families
The practical implications of removing this protection cannot be overstated.
Manifest immigration attorney Ana Gabriela Urizar says removing it would mean an immediate loss of legal status for anyone hit by a layoff.
As she explained: "The 60-day grace period gives H-1B workers a critical window to find a new employer and continue the lives they have built in the United States."
These are individuals who may have mortgages or leases, car payments, and children enrolled in school. Without that grace period, an unexpected layoff would not simply mean losing a job — it could immediately put a family's ability to remain in the United States into question.
Dependents could also face consequences because their status is tied to the principal visa holder.
Spouses on H-4 visas — some of whom hold work authorization and are employed themselves — and children enrolled in U.S. schools would be forced into a sudden and chaotic departure scenario.
If the proposal is realized, foreign workers would have to leave the U.S. immediately with their families if their employment ends before the expiration of their stay. They would be unable to change their status or employer while remaining in the country, except with a dispensation from Citizenship and Immigration Services.
Political Context
The possible removal of the 60-day window comes as the Trump administration continues to pursue changes to the H-1B program. The administration has argued that the visa system has been misused by employers and has taken several steps aimed at tightening immigration rules for highly skilled foreign workers.
Since January, more than a dozen Republican lawmakers have supported four bills to restrict, suspend, or completely eliminate the H-1B program.
President Trump's attempt to implement a $100,000 fee on all new H-1B applications remains tied up in the courts.
It is worth noting that
DHS already has discretion to shorten or deny the grace period in certain circumstances.
The new proposal would go further by formally eliminating it through rulemaking.
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9/11 Response Fee Expanded to Extensions
In a separate but equally consequential development,
DHS is amending the regulations concerning the 9-11 Response and Biometric Entry-Exit Fee for certain H-1B and L-1 visas. The regulatory changes correct DHS's interpretation of statutory language to require that covered employers submit the 9-11 Biometric Fee for all extension-of-status petitions, regardless of whether the related fraud prevention and detection fee applies, which includes extension-of-status petitions that do not involve a change of employer.
The final rule will expand the $4,000 or $4,500 fee to H-1B and L-1 extension petitions filed by employers subject to the fee; previously the fee was required only in initial and change-of-employer petitions.
This rule is effective on September 9, 2026.
Who Is Affected?
The fee applies only to covered employers, defined as employers that have 50 or more employees in the United States and have more than 50% of their U.S. workforce in H-1B, L-1A, or L-1B status.
This primarily targets large IT outsourcing firms, multinational technology companies, and consulting organizations with heavy reliance on foreign workers.
The rule does not increase the fee amounts; it expands the types of petitions subject to the fee.
Organizations filing routine extension requests for the same employee will now face additional filing costs that previously may not have applied.
The Numbers Tell the Story
Of the 406,685 H-1B petitions approved during fiscal year 2025, 291,542 (71%) were for continuing employment rather than first-time entrants. Indian nationals received 226,359 H-1B extensions in FY 2025, representing 77.6% of all H-1B extensions worldwide.
The move could have a significant impact on Indian workers, who accounted for nearly 78% of H-1B extension approvals in 2025, making them the largest group affected by any increase in renewal-related expenses.
The fee provisions currently apply to petitions filed through September 30, 2027, unless extended by Congress.
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What Workers and Employers Should Do Now
These two developments — one a proposed rule still under White House review, the other a finalized regulation set to take effect in September — together represent a significant escalation in the administration's approach to legal immigration.
For nonimmigrant workers, the potential elimination of the 60-day grace period underscores the urgency of proactive immigration planning. Workers should consult with immigration counsel now to understand their options in the event of a job loss, including whether maintaining a pending change-of-status application or securing an approved I-140 petition could provide additional protections.
For employers,
potentially affected employers should review their U.S. workforce composition, identify upcoming H-1B and L-1 extension filings, and account for the additional fees in their immigration budgets. Employers should consult immigration counsel regarding how the rule applies to specific petitions.
It is important to emphasize that the grace period proposal remains at the rulemaking stage.
The contents of the proposed rule are not public yet and remain under White House review.
If published, a public comment period would follow before any final rule could take effect. However, given the administration's track record of swift regulatory action, affected stakeholders should prepare accordingly rather than assume the status quo will hold.
The immigration landscape continues to shift rapidly. ClinchLaw will monitor both of these developments and provide updates as the rulemaking process unfolds.