On August 6, 2026, the Department of Homeland Security took a significant step toward dismantling one of the most critical safety nets available to foreign workers in the United States.
DHS sent a proposed rule 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 proposed rule would eliminate the discretionary 60-day grace period currently available to certain employment-based nonimmigrant visa holders following the termination of employment.
While the full text of the regulation has not yet been made public, the implications are already sending shockwaves through the immigration community.
What Is the 60-Day Grace Period?
The 60-day grace period was created by regulation in 2016 and took effect in early 2017. Under the rule, E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants and their dependents are not considered to have failed to maintain nonimmigrant status solely because the principal's employment ceased. The grace period lasts for the shorter of 60 days or until the principal's I-94 expiration date.
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.
The grace period is available once during each authorized petition validity period. DHS has the discretion to refuse or shorten the grace period but has rarely done so. The grace period was instituted to mitigate the negative immigration consequences of employment loss.
The 60-day provision is codified at 8 CFR 214.1(l)(2).
What Does the Proposed Rule Mean?
If the 60-day grace period is eliminated, foreign nationals whose employment ceases prematurely (and their dependents) would no longer be maintaining status and would generally be required to depart the United States immediately and would be unable to change status or change employers within the United States, unless USCIS exercises its discretion to forgive the lapse in status.
Since 2017, DHS regulations extended the allotted time for H-1B workers and others with nonimmigrant status to find another employer sponsor or change status before their period of authorized stay expires. Removing it would mean immediate consequences for workers' legal status if they're affected by layoffs.
Immigration attorney Ana Gabriela Urizar of Manifest Law underscored the human toll of the proposal.
"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," she says.
Where Does the Proposal Stand?
It is important to emphasize that the proposed regulation has not taken effect.
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 to the Federal Register.
When the proposal to eliminate the grace period clears federal review — which could take several months or more — it will be published for a public comment period of 30 to 60 days. The regulation would not take effect until the rule is finalized, which typically takes several months. Once the proposal is published, feedback from employers will be important to inform the government of the impact of the proposal on the business community.
Under Executive Order 12866, OIRA has up to 90 days (which can be extended) to review a rule.
However, the current administration has sought to accelerate deregulatory actions.
The proposed regulation has not taken effect, and its full text has not yet been made public. The existing 60-day grace period therefore remains in place.
Who Would Be Affected?
The proposal would impact workers across multiple nonimmigrant visa categories.
Under current federal regulations, workers in several employment-based nonimmigrant classifications can receive a grace period of up to 60 consecutive days after their employment ends. The provision covers workers in the E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN classifications, along with their dependents.
Without the 60-day protection, losing a job could put an affected worker's immigration status at immediate risk. Their dependents could also face consequences because their status is tied to the principal visa holder.
The latest move could be particularly significant for Indian professionals because Indians make up the largest nationality group in the H-1B program. Many Indian workers also face lengthy waits for employment-based green cards, making continued maintenance of lawful nonimmigrant status especially important while they remain in the permanent-residence queue.
According to reporting,
Indian nationals are among the largest beneficiaries of H-1B employment visas, comprising 71 percent of all successful applicants in the 2024 fiscal year.
Broader 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.
The tech sector in particular has experienced ongoing disruption.
In 2025 alone, companies attributed 55,000 job cuts directly to AI adoption, and early 2026 has already seen over 22,000 AI-related workforce reductions across the tech sector.
For workers on employer-sponsored visas, this environment makes one thing clear: immigration status that depends entirely on a single employer carries inherent risk.
Practical Implications and What to Do Now
While the grace period is still in effect, the trajectory of the current administration's policy positions means visa holders should be taking proactive steps. Here is what employment-based nonimmigrant workers should consider:
- Understand your current status. Know the exact expiration date of your I-94 and the terms of your authorized stay. The grace period, even while it exists, cannot extend beyond the I-94 expiration date.
- Act quickly after any job loss.
- Explore alternative pathways.
- Consult an immigration attorney immediately. Given the uncertainty surrounding this proposed rule, professional guidance is essential. An attorney can assess individual circumstances, evaluate green card options, and help plan for contingencies.
- Employers should prepare.
Looking Ahead
USCIS has previously acknowledged that changing the grace period requires regulatory rulemaking under the Administrative Procedure Act.
This means the elimination cannot happen overnight — the Administrative Procedure Act mandates notice-and-comment rulemaking, which involves publication of the proposed rule, a public comment period, and finalization.
That said, the submission of the rule to OIRA represents a meaningful step forward in the regulatory process. Affected workers, employers, and advocates will have the opportunity to submit comments once the proposed rule is published in the Federal Register, and those comments can play a material role in the outcome.
For now, the 60-day grace period remains in effect. But the message from the administration is clear: employment-based nonimmigrant workers should treat their immigration status with heightened urgency and plan accordingly.
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This article is provided for informational purposes only and does not constitute legal advice. If you have questions about how this proposed rule may affect your specific situation, please consult a qualified immigration attorney.