Washington, September 2026 : The Trump administration has proposed ending the provision that allows H-1B workers and certain other employment-based visa holders to remain in the United States for up to 60 days after losing their jobs, a move that could significantly reduce the time available for affected workers to secure new employment or pursue another immigration option.
The proposal from the Department of Homeland Security (DHS) is scheduled for publication in the Federal Register on Friday. It seeks to remove the regulation under 8 CFR 214.1(l)(2), which currently applies to several employment-based non-immigrant visa categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN, as well as their eligible dependents.
If the proposal is eventually finalised, workers whose qualifying employment or activity ends would generally be required to leave the US immediately unless they have another legal basis allowing them to remain.
Key Points
- DHS has proposed eliminating the up-to-60-day grace period for certain employment-based visa holders.
- The proposal covers H-1B and several other visa classifications, along with eligible dependents.
- Workers could have to leave the US immediately after their qualifying employment ends unless otherwise authorised to stay.
- The existing grace period was introduced in 2016 and took effect in January 2017.
- DHS estimates that around 65,752 primary beneficiaries in the affected classifications lose jobs or change employers each year.
- Nearly 99 per cent of the affected workers during fiscal years 2021-2025 were H-1B beneficiaries.
- About 3,795 workers annually had a new Form I-129 petition filed by another employer during the existing grace period.
- The median annual wage in fiscal year 2025 for affected H-1B workers who obtained a new petition during the grace period was $131,000.
- The proposal is not yet a final rule and is open to public comments.
DHS said the existing grace period creates a disconnect between an individual's lawful immigration status and the employment or activity that originally formed the basis for that status.
According to the department, the proposed removal would restore what it described as its earlier policy, under which employment-based non-immigrant workers were generally expected to depart the country once their employment with the sponsoring employer ended.
Under the current regulations, eligible workers and their dependents can remain in the US for up to 60 days after employment ends, or until the expiration of their authorised validity period if that occurs sooner. DHS has discretion to shorten or eliminate the grace period in individual circumstances.
The grace period was introduced as part of a 2016 rule that became effective in January 2017. It was designed to provide greater job portability, stability and flexibility to highly skilled foreign workers whose employment ended before the expiration of their approved petition.
The provision has also allowed some workers to remain in the US while seeking a new employer-sponsored petition, applying for a change or extension of status, or pursuing adjustment of status towards permanent residence.
DHS now argues that the earlier rulemaking did not adequately account for what it considers the negative consequences of the grace period. The department said eliminating the provision would strengthen programme integrity and establish a more direct connection between an individual's legal status and the employment or qualifying activity supporting that status.
The proposed change could have a significant impact on workers who are suddenly laid off or whose employers shut down operations. Without the grace period, affected employees could have substantially less time to identify another employer, complete immigration procedures or explore alternative legal status before being required to depart.
DHS acknowledged that some workers could experience financial consequences because they may lose income if they have to leave the country before securing new employment.
The department also estimated that the proposal could result in a marginal increase in referrals from US Citizenship and Immigration Services (USCIS) to the Justice Department's immigration court system. It could also increase demands on Immigration and Customs Enforcement (ICE).
Data cited by DHS indicates that an average of 65,752 primary beneficiaries in the affected visa categories either lost employment or changed employers annually between fiscal years 2021 and 2025. Across the five-year period, the figure stood at 328,758 workers, with H-1B beneficiaries accounting for 99 per cent.
DHS further estimated that approximately 3,795 workers each year had a new Form I-129 petition submitted by another employer during the existing grace period.
For fiscal year 2025, the median annual salary of affected H-1B workers who obtained a new petition during the grace period was estimated at $131,000.
The proposal remains subject to the federal rule-making process. DHS has invited members of the public and affected stakeholders to submit comments before any final decision is taken.
If implemented, the measure would represent a major change for thousands of highly skilled foreign workers who currently rely on the 60-day window to transition between employers or pursue other immigration pathways after losing employment.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
