U.S. proposes new rule to scrap 60-day grace period for H-1B workers: A practical reader guide

U.S. proposes new rule to scrap 60-day grace period for H-1B workers: A practical reader guide

The U.S. on Thursday (September 10, 2026) proposed a new rule to scrap the 60-day grace period available to certain foreign workers, including skilled workers on H-1B visas, to find a new job after losing employment.

Under the proposal, the DHS would eliminate the discretionary, maximum 60-day grace period currently accorded to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN nonimmigrants and their dependents, whose employment ceases.

“This proposal restores a direct relationship between an alien’s nonimmigrant status and the specific employment or activity that formed the basis of his or her admission or grant of status in the United States and reduces administrative burden,” the DHS said.

If the proposal is finalised, workers facing job loss would have to leave the country and reapply at an American embassy or consulate after receiving an offer from another U.S. employer. It is the latest step by U.S. The prospect of NTA issuance may be likelier for those in nonimmigrant categories that require an employer to immediately notify the government when employment of the foreign national has ceased, including H-1B, O-1, and P. Primary beneficiaries who experienced either cessation of employment or voluntarily changed employers are 65,752 in 2025, with a high of 80,034 in FY 2023 and a low of 40,959 in FY 2021, according to DHS estimates. President Donald Trump to limit legal migration since returning to office in January 2025.

In its proposal, DHS acknowledges that if the grace period regulation is eliminated, some affected foreign nationals could be issued Notices to Appear (NTA), the government’s first step in initiating removal (deportation) proceedings, Fragomen, an immigration attorney firm, said.