H-1B Workers Could Lose 60-Day Grace Period Under DHS Proposal

On Aug. 6, 2026, DHS submitted a proposed rule, “Eliminating the Discretionary 60-day Grace Period,” to the Office of Management and Budget (OMB) that seeks to eliminate the 60-day grace period available to H-1B workers and certain other employment-based visa holders following a job loss. The full regulatory text has not yet been released publicly. If the rule is finalized, eliminating the 60-day grace period could have far-reaching consequences for skilled foreign workers, employers, and the broader U.S. talent market.

Since 2017, eligible H-1B workers who lose their jobs have generally been granted up to 60 days, or until the end of their authorized stay, whichever comes first, to find a new sponsoring employer, change immigration status, or depart the United States. The policy was introduced to provide workers with a reasonable period to address an unexpected employment termination without immediately falling out of status. The grace period applies to several employment-based