Loss of 60-Day Grace Period Would Impact Laid-Off H-1B Workers

The Department of Homeland Security advanced a proposal August 6 to eliminate the 60-day grace period for certain nonimmigrant workers, including H-1B workers who lose their jobs before their authorized stay expires. The proposal carries Regulatory Identification Number RIN 1615-AD22.

DHS sent the proposed rule to the White House Office of Information and Regulatory Affairs for review. That step comes before publication for public comment. The current protection remains legally in effect as of August 10, 2026.

The existing rule dates to 2017. Under 8 CFR 214.1(l)(2), eligible workers can stay in the United States for up to 60 consecutive days after employment ends, or until their authorized validity period expires, whichever comes first.

The rule covers H-1B, H-1B1, L-1, O-1, TN, E-1, E-2 and E-3 workers. Their dependents also could face the consequences of a shortened departure timeline.

If finalized, the proposal would remove the period workers use to seek new employment or change status. A termination could instead trigger an immediate loss of legal nonimmigrant status, according to the policy description.

That could also block in-country filings. Workers might be unable to submit an H-1B transfer or change-of-status request from inside the country because they would no longer be maintaining status when they filed.

A job loss could force families to leave before they can close out their lives

The proposal would generally require affected workers and their dependents to depart the United States immediately after termination. USCIS could still exercise discretion, but that relief would be rare.

Workers may have mortgages, car leases and children enrolled in local schools. Removing the existing window would give families zero time to wind down those obligations, community leaders and immigration experts say.

Ajay Bhutoria, a community leader, condemned the proposal August 10, 2026.

“Eliminating the 60-day grace period is inhumane and unworkable. Families will be uprooted overnight, thrown into chaos through no fault of their own.”

The change is part of a broader “America First” approach aimed at tightening the H-1B program. Supporters argue that eliminating the protection would prevent misuse, while critics say it would create immigration cliffs for workers who complied with the rules.

The affected population includes a large Indian professional community. Indian nationals accounted for approximately 71% of all approved H-1B petitions in 2024, so the proposed change is expected to fall disproportionately on Indian-American professionals.

The proposal still faces several formal steps

DHS must clear the internal review before the proposal can move into the public rulemaking process. The remaining sequence is:

1. OIRA completes its review.
2. DHS publishes the proposal in the Federal Register as a Notice of Proposed Rulemaking.
3. The public receives a 30 to 60-day comment period.
4. The government reviews the comments and publishes a Final Rule with an effective date.

The proposal therefore has not yet changed the rights available under the current regulation. Workers whose employment ends while the rule remains in force can still rely on the existing protection, subject to its 60-day maximum and their authorized validity period.

USCIS Director Joseph B. Edlow signaled a stricter agency posture after his confirmation in July 2025. On July 18, 2025, he said:

“USCIS must be an immigration enforcement agency. I am greatly looking forward to advancing the president’s agenda to restore integrity in our legal immigration system.”

The review now places the grace-period proposal between agency action and a possible public fight over its final terms. Any final rule would need an effective date before the proposed loss could govern future terminations.