DHS Proposes Eliminating H-1B 60-Day Grace Period in 2026

by Niloofar Rahimi Zadeh updated on Aug 12, 2026 02:33:52 PM

The U.S. Department of Homeland Security (DHS) is considering eliminating the 60-day grace period that can give H-1B workers additional time after their employment ends.

On August 6, 2026, DHS and U.S. Citizenship and Immigration Services (USCIS) submitted a proposed rule titled “Eliminating the Discretionary 60-day Grace Period” for review by the White House Office of Information and Regulatory Affairs (OIRA). The proposal, identified as RIN 1615-AD22, is currently listed as a proposed rule under review.

Most importantly, the H-1B 60-day grace period has not been eliminated and remains available under current regulations as of August 12, 2026. USCIS continues to state that workers who are laid off, fired, quit, or otherwise stop working for their H-1B employer may receive up to 60 consecutive days after employment ends, subject to their authorized period of stay.

What Is the Current H-1B 60-Day Grace Period?

Under current regulations, certain employment-based nonimmigrants may receive a grace period of up to 60 consecutive days after their employment ends, or until the end of their authorized validity period, whichever comes first.

The current regulation covers people in several classifications, including H-1B, H-1B1, E-1, E-2, E-3, L-1, O-1 and TN status. The grace period was created to give affected workers time to respond to an unexpected end of employment without immediately being treated as having failed to maintain status solely because their job ended.

For H-1B workers, that period can be especially important after a layoff. During the available window, an eligible worker may pursue a new sponsoring employer, request a change of immigration status or prepare to leave the United States.

H-1B portability rules may also allow an eligible worker to begin working for a new employer after that employer properly files a qualifying H-1B petition, rather than waiting for the petition to be approved.

What Is DHS Proposing to Change?

The title of the DHS proposal indicates that the agency intends to eliminate the discretionary 60-day grace period. However, the proposal is still undergoing OIRA review and its full regulatory text has not yet been published in the Federal Register.

That means important details—including exactly how the rule would operate, whether there would be exceptions, when a change could take effect and how different visa categories would be treated—are not yet publicly available.

Reports that the 60-day grace period has already been removed are therefore premature. The Indian Express reported the development as a potential change affecting H-1B workers after job loss, not as a rule already in force.

What Could This Mean for H-1B Workers After a Layoff?

If DHS ultimately eliminates the grace period, the consequences could be significant because H-1B status is generally tied to qualifying employment.

Today, the grace period gives many workers time to coordinate with a new employer, prepare an H-1B transfer petition, pursue another immigration status or arrange their departure from the United States. The regulation was specifically created in part to improve job portability and provide workers with flexibility after employment ends.

Removing that protection could make the period immediately following a layoff much more difficult. Workers might have substantially less time to secure another employer or take action to maintain lawful status.

However, because DHS has not released the proposed regulatory text, workers should not assume that every job loss would automatically require immediate departure. The exact consequences and any exceptions cannot be confirmed until the proposal is published.

What Should H-1B Workers Do Now?

For now, the existing rules still apply.

H-1B workers who lose their jobs should confirm their final employment date, review the expiration date on their Form I-94 and evaluate their options as early as possible. USCIS states that the maximum grace period generally begins the day after employment terminates.

International professionals who originally transitioned from F-1 or OPT/STEM OPT status to H-1B should also pay attention to this proposal. Once a person is in H-1B status, the rules governing H-1B employment and maintenance of status become particularly important following a layoff.

The proposal itself does not change CPT, Day 1 CPT, OPT or STEM OPT rules.

The next major development to watch will be publication of the proposed rule. Until DHS releases the actual text and completes the rulemaking process, the current H-1B 60-day grace period remains in place.

Relevant Sources:

Topics: H1B Status DHS Rule

Share this