CCIA Backs H-1B Grace Period as DHS Proposed Rule Draws Scrutiny

The Computer & Communications Industry Association (CCIA) is urging the Department of Homeland Security to retain the H-1B grace period, arguing its proposed elimination would impose substantial costs on workers, families and employers. The association estimates $263 million in annual net costs in its central scenario.

The DHS proposed rule would remove a discretionary period that can give certain nonimmigrant workers time after qualifying employment ends. The public-comment deadline was November 10, 2026.

DHS published the proposal on September 11, 2026, seeking to repeal 8 CFR 214.1(l)(2). Comments were filed under docket USCIS-2026-0364. As of October 29, 2026, the department had not issued a final rule; DHS could finalize the proposal, change it or take another course.

The effective date of any final rule remains unclear. The comment deadline is not an effective date.

DHS says the existing provision complicates immigration adjudications. The department argues that employment-based status should track the qualifying job, and that removing the grace period would simplify officers’ review of later petitions.

The association says the repeal would cost more than it saves

Trevor Wagener’s central scenario estimates that the proposed repeal would generate the stated annual net costs. The association also says those costs would exceed claimed USCIS savings by 354 to 1.

Its public statement says:

“follow the evidence, not impose a costly policy that disrupts workers, families, and employers”

The figures are CCIA’s estimates, not government findings. The association’s analysis is titled “Ending H-1B Grace Period Fails Cost-Benefit Test.” Its public summary describes three scenarios but does not detail the assumptions or itemize the costs, so the figures do not show which expenses drive the estimate.

DHS has also considered whether to shorten the existing period rather than eliminate it. The agency’s position is that a shorter window would not resolve the administrative complexity it identifies.

The current window is discretionary, not automatic

The existing regulation covers workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN classifications, as well as eligible dependents. The duration can be up to 60 consecutive days, or until the authorized validity period ends, whichever comes first. USCIS has discretion to grant, shorten or deny the period.

Workers cannot work during the current grace period without separate work authorization. They may seek a new employer, pursue a change of status or arrange to depart. The I-94 end date also limits how long a worker may remain, even when the grace period applies.

If DHS finalizes the proposal as written, affected workers would lose that buffer after employment stops. The change could also affect dependents whose status rests on the worker’s status. Employers could face pressure to coordinate termination notices and file change-of-employer petitions promptly.

The proposal does not itself change the current regulation. The department’s next step, and the effective date if it adopts a final rule, remain unsettled.

Workers and employers can prepare while DHS weighs the proposal

Workers and sponsoring employers can review dates and records without treating the proposal as final:

1. Check the I-94 expiration date and the end date on the worker’s petition. Review dependent family members’ records as well.
2. Keep approval notices and employment records available in case a new employer needs to file promptly.
3. Seek immigration advice before employment ends where possible, and review potential status options with counsel.
4. Employers should identify staff in covered classifications and assess whether filing plans need to move quickly if employment ends.
5. Check DHS’s rulemaking status before making decisions based on a possible final rule.