Proposal to End 60-Day Grace Period for H-1B Workers Clears Federal Review

A federal proposal to eliminate the time many foreign workers have to find another job or make immigration arrangements after their employment ends has cleared White House review.

The Department of Homeland Security (DHS) proposal would eliminate the discretionary, maximum 60-day grace period available to certain workers, including those in H-1B status. 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.

While the clearance moves the proposal closer to publication, it does not change the rules workers can use today.

What happened?

DHS submitted the proposal, titled “Eliminating the Discretionary 60-day Grace Period,” for review on August 6. The federal record now lists that review as complete, with the outcome “Consistent with Change.” It still identifies the action as a proposed rule and lists no publication date.

The next expected step is publication in the Federal Register, which would disclose the proposed changes and open a public comment period. The full text will be needed to establish the proposal’s scope, any exceptions, and how DHS intends to handle the transition.

How does the current grace period work?

Under the current rule, eligible workers and their dependents may be treated as maintaining their nonimmigrant status after the employment supporting that status ends.

That protection lasts for up to 60 consecutive days or until the end of the authorized validity period, whichever is shorter. It is available once during each authorized validity period, and DHS can shorten or deny it as a matter of discretion.

The rule covers workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status, along with their dependents. Eligible individuals may use the period to seek an extension of stay or a change of status. The grace period itself does not authorize employment.

For eligible H-1B workers, separate job portability rules can allow employment with a new employer to begin once a qualifying petition is properly filed, or on the requested start date, whichever is later. That makes timely filing an important part of changing jobs.

What could eliminating the grace period mean?

The practical concern is the loss of time between jobs. A worker who loses employment may need to interview, secure an offer, and coordinate an immigration filing with a new employer while also managing the financial consequences of a layoff.

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.

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.

What should workers and employers do now?

Workers should continue to assess their options under the current rules. Anyone whose employment has ended should promptly confirm their individual deadline and possible next steps with an immigration attorney . The prospect of a future change is a reason to stay informed, but it does not mean the existing grace period has disappeared.

Employers should review how quickly their recruiting, human resources, and immigration teams can coordinate when hiring someone whose previous job has ended. They should also involve immigration counsel early when planning layoffs or other employment changes affecting sponsored workers.

Once the proposal is published, employers and workers will have an opportunity to explain how the change could affect them through public comments.

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