USA10 September, 20262 min read
Trump Administration Proposes Ending 60-Day Grace Period for H-1B Workers After Job Loss
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DHS proposal would eliminate the 60-day grace period for H-1B workers after job loss. Affects H-1B and other temporary workers; could force immediate departure without new sponsorship.
Grace Period Proposed End
The Trump administration proposed eliminating a 60-day grace period that lets certain foreign workers, including skilled workers on H-1B visas, stay in the United States and find a new sponsor after losing their job. The Department of Homeland Security said the proposal would "restore 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". The rule would eliminate the discretionary, maximum 60-day grace period for E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN nonimmigrants and their dependents whose employment ceases.
The proposal is set to be published in the Federal Register on Friday (September 11, 2026), and DHS invited public comments within the next 60 days. If finalized, foreign workers facing job loss before their visas expire would need to leave the United States immediately unless they have separate authorization to remain.
Who Is Affected
Newsweek reported that the proposed change would force workers and their families to leave the country "immediately" unless they have another legal basis to stay. The proposal would also affect more than 208,000 spouses and children whose immigration status is tied to those workers, according to Newsweek. Reuters said DHS estimates that about 3,795 workers a year, nearly all H 1B visa holders, use the grace period to find new employment after a layoff or resignation.
Reuters also said the change would apply to E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 short-term work for executives or managers, O-1 visas for people "with an extraordinary ability" in science, sports or the arts, and TN professional workers. The rule is subject to a two-month public comment period before it can be finalized, Reuters reported.
Numbers, Estimates, and Next Steps
DHS estimates cited by The Hindu put the number of primary beneficiaries who experienced either cessation of employment or voluntarily changed employers at 65,752 in 2025, with a high of 80,034 in FY 2023 and a low of 40,959 in FY 2021. Bloomberg Law News reported that DHS estimates a yearly average of 65,752 workers covered by the 60-day grace period experienced a job loss or changed employers between 2021 and 2025. Bloomberg Law News added that over that period, just under 6% had a new employer file to sponsor them within that window, while another 1.7% workers filed to extend or change their status.
“I see no legitimate reason to force them to leave because they are changing jobs.”
The Hindu said that 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. Reuters quoted Gabriel Chin, a professor at the UC Davis School of Law, saying, "I see no legitimate reason to force them to leave because they are changing jobs."