DHS Proposal Ends 60 Day Grace Period for H-1B and Other Visa Holders
A job loss in the US is stressful for any worker. For a foreign national on an employment-based visa, it can also start an immigration countdown. That is why a Department of Homeland Security proposal to remove the current 60-day grace period has drawn close attention from visa holders, employers, immigration lawyers and families planning their future in the United States.
The key point is simple: this is a proposal, not a final rule. The current grace period remains in place unless and until DHS completes the rulemaking process and a final rule takes effect.
If finalised as proposed, the change could affect workers in several visa categories, including H-1B, H-1B1, E-1, E-2, E-3, L-1, O-1 and TN. It could be especially significant for many Indian professionals in the US technology, consulting, finance, healthcare, academic and start-up sectors, where job mobility and green card backlogs already create uncertainty.
What the current 60-day grace period does
Under the current rules, certain non-immigrant workers get a discretionary grace period of up to 60 consecutive days after employment ends, or until the end of their authorised validity period, whichever is shorter.
This has been used by many workers to:
Find a new employer willing to file a petition
Move to a different valid immigration status
Prepare to leave the US in an orderly way
Avoid an immediate status violation after an unexpected layoff
For example, if an H-1B worker is laid off and still has more than 60 days left on their I-94, the worker may generally use the grace period to seek another H-1B sponsor. The new employer may be able to file a petition during that window. If the petition is timely and properly filed, the worker may have a path to continue employment in line with H-1B portability rules.
This is why the H-1B grace period after job loss has become such an important safety net. It gives workers time to act, and it gives employers time to complete legal and hiring steps.
The grace period does not, by itself, grant open work authorisation. It also does not guarantee approval of a new visa petition. It simply gives eligible workers a short window to manage their immigration situation after employment ends.
What DHS is proposing to change
DHS has proposed ending the automatic 60-day grace period after job loss for certain employment-based non-immigrant categories. If this proposal becomes a final rule, affected workers may have far less time to respond after a termination, layoff or role ending.
In practical terms, the proposal could mean that when employment ends, the worker may need to take quick action to remain in lawful status. The options could include filing a change of status, having a new employer file a petition, or departing the United States, depending on the person’s visa category and facts.
For the H-1B 60-day grace period 2026 discussion, the most important detail is timing. A rule proposed by DHS does not change the law immediately. The agency must follow the federal rulemaking process, consider public comments, and publish a final rule before major changes can take effect.
A proposal is not the same as a final rule. Visa holders should not assume the 60-day grace period has ended unless official DHS, USCIS or Federal Register sources confirm a final change.
The proposal appears aimed at reducing periods where employment-based visa holders remain in the US without a sponsoring job. Supporters may argue that employment-based visas should stay closely tied to active employment. Critics are likely to argue that sudden status loss would make layoffs more damaging, weaken worker mobility, and create avoidable hardship for families.
Visa categories that may be affected
The proposal matters because it is not limited to H-1B workers. It could cover several non-immigrant categories used by professionals, investors, intra-company transferees, specialised workers and treaty-based employees.
Visa category | Who commonly uses it | Why the grace period matters |
H-1B | Specialty occupation workers, often in technology, engineering, finance, healthcare and consulting | Gives time to find a new sponsor after a layoff |
H-1B1 | Professionals from Chile and Singapore in specialty occupations | Helps manage job transitions without immediate departure |
E-1 | Treaty traders | Supports continuity when qualifying employment or trade role changes |
E-2 | Treaty investors and essential employees | Gives time to address business or employment disruption |
E-3 | Australian specialty occupation workers | Gives a short transition window after job loss |
L-1 | Intra-company transferees in managerial, executive or specialised knowledge roles | Helps workers respond if a US assignment ends early |
O-1 | People with extraordinary ability or achievement | Gives time to secure a new petitioner or agent arrangement |
TN | Canadian and Mexican professionals under USMCA categories | Helps with employer changes and professional mobility |
For Indian nationals, H-1B and L-1 are often the categories of greatest concern. Many Indian professionals work in roles where employer sponsorship is central to lawful status. If the grace period disappears, the gap between losing a job and finding a new sponsor could become much harder to manage.
Why Indian professionals could feel the impact sharply
A large number of Indian professionals in the US are tied to employer-sponsored immigration pathways. Many are on H-1B status. Others are on L-1 assignments or depend on a spouse’s visa status.
The proposal could affect Indian families in several ways.
Job searches could become more urgent
A 60-day window is already short in many industries. Hiring in the US can involve several interview rounds, background checks, internal approvals and legal review. For sponsored roles, the employer also needs immigration counsel to prepare and file the right paperwork.
Without a grace period, workers may have little room for delay. A layoff could require same-day or near-immediate planning, especially if the worker wants to avoid falling out of status.
Green card backlogs add pressure
Many Indian H-1B workers are also in long employment-based green card queues. Some have approved I-140 petitions but still wait years for a priority date to become current. A sudden job loss can already complicate their path. Removing the grace period could make the situation more difficult, especially when a worker needs a new sponsoring employer.
The effect may spill over to dependants as well. Spouses on H-4 status, including those with H-4 EAD work authorisation, may be affected if the principal worker’s status is disrupted. Children on dependent visas could also face uncertainty around schooling, age-out concerns and travel plans.
Smaller employers may hesitate
Large employers often have immigration teams and outside counsel ready to act quickly. Smaller companies may need more time to understand sponsorship duties, collect documents and decide whether to proceed. If timelines become tighter, some employers may avoid hiring workers who need urgent visa filings.
That could narrow options for skilled workers who are otherwise well qualified.
What public comments can do
Because this is a proposal, public comments matter. In the US rulemaking process, agencies generally publish proposed rules and invite comments from the public before finalising them. Comments may come from workers, employers, trade groups, universities, immigration lawyers, advocacy groups and state or local bodies.
Public comments can:
Support the proposal
Oppose the proposal
Suggest changes or exceptions
Explain practical effects on workers, employers and families
Provide legal, economic or administrative arguments
The most useful comments are usually specific and evidence-based. A worker might explain how the current grace period helped maintain lawful status after a layoff. An employer might explain how long it takes to recruit, prepare a petition and onboard a sponsored worker. A university or research institution might describe how sudden loss of status could affect specialised projects.
DHS is required to consider relevant comments before issuing a final rule. That does not mean every comment changes the outcome, but it does mean the agency must review the public record as part of the process.
People who want to comment should use the official channel listed in the Federal Register notice or on Regulations.gov. They should avoid relying only on screenshots, forwarded messages or social media summaries.
What visa holders should do now
No one should panic based on a proposal. At the same time, workers in affected categories should prepare. Immigration planning is easier before a crisis than after one.
Check your current status documents
Keep copies of:
Passport biographic page
Visa stamp, if applicable
I-94 record
Approval notices
Employment verification letters
Recent payslips
Labour condition application details, if relevant
I-140 approval notice, if applicable
Dependant approval notices and EAD cards
Your I-94 is especially important because it usually controls authorised stay in the US. A visa stamp in the passport is mainly for travel and entry. These two dates may not match.
Understand your employer’s process
Workers in sponsored status should know who handles immigration matters at their company. If there is a layoff, timing matters. Ask, in general terms, how the company communicates termination dates and whether immigration counsel is involved.
A termination date, last payroll date and notification date can carry different practical meanings. A qualified immigration lawyer can help interpret how those dates apply to a specific case.
Build a realistic job search plan
If you are in a role that depends on sponsorship, keep your professional documents updated. That includes your CV, degree documents, experience letters, publication records, awards and reference material.
For H-1B workers, a new employer may need to file a petition before work can begin under portability provisions. For O-1 workers, the new role and petitioner structure may need careful review. TN workers need to fit specific professional categories. L-1 workers may have fewer options because the classification depends on a qualifying multinational relationship.
Review dependant risks
If your spouse or children depend on your status, include them in the planning. A change to the principal worker’s status can affect H-4, L-2, E dependent, O-3 or TD family members.
Families should also consider travel, school calendars, EAD renewal timing and passport validity. These details can become urgent if rules change or employment ends suddenly.
Avoid informal legal advice
Online forums can help people understand common experiences, but immigration outcomes depend on facts. Two H-1B workers laid off on the same day may have different options because of I-94 dates, petition history, green card stage, employer readiness, prior status violations or travel plans.
This article is for general information only. It is not legal advice. Anyone affected by a layoff, visa change or proposed rule should speak with a qualified US immigration lawyer.
How to verify the latest official information
Immigration news changes quickly, and proposals can change before they become final. To verify the current position, check official sources such as:
The Department of Homeland Security
US Citizenship and Immigration Services
The Federal Register
Regulations.gov for public comment records
Official employer immigration counsel updates
Be careful with headlines that say the grace period “has ended” unless they cite a final rule with an effective date. A proposed rule may signal policy direction, but it does not automatically change current rights and obligations.
The main takeaway for visa holders
The DHS proposal to end the 60-day grace period could be a major change for H-1B, H-1B1, E-1, E-2, E-3, L-1, O-1 and TN visa holders. For Indian professionals in the US, the stakes may be especially high because job loss can affect not only employment, but also long-term green card plans, spouse work authorisation, children’s schooling and the ability to remain in the country lawfully.
For now, the most important facts are clear. The change is still a proposal, not a final rule. The current 60-day grace period continues unless an official final rule says otherwise. Public comments may still shape the outcome if the rulemaking process is open.
The best next step is calm preparation. Keep documents ready, understand your status, follow official updates, and get qualified immigration advice before making decisions about employment, travel, status changes or departure from the United States.
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