US Immigration Policy May Eliminate 60-Day Grace Period for H-1B Visa Holders

New Delhi, India Aug 29, 2026 ALN: The White House has completed its review of a proposal that could potentially eliminate the 60-day grace period currently afforded to H-1B visa holders and other foreign workers in the United States. This grace period allows individuals who have lost their jobs to remain in the country while they search for new employment opportunities or consider changing their immigration status. The implications of this proposal are significant, particularly for those who rely on the H-1B visa program, which has been a critical pathway for skilled foreign workers in various sectors, especially technology and consulting.

The proposal, which was initiated by the Department of Homeland Security (DHS) and sent to the Office of Management and Budget (OMB) for review earlier this month, encompasses several categories of nonimmigrant workers. These include not only H-1B visa holders but also those on E-1, E-2, E-3, H-1B1, L-1, O-1, and TN visas, along with their dependents. The specific details of the proposed rule have yet to be made public; however, it is anticipated that the next steps will involve publication in the Federal Register, where it will be open for public comment for a period typically lasting between 30 and 60 days.

The elimination of the 60-day grace period would represent a significant shift in immigration policy, especially considering that this provision was introduced in 2017 to provide some level of security and stability for foreign workers facing job loss. Under the current framework, individuals whose employment ends before their authorized stay in the U.S. expires can remain in the country for an additional 60 days. This period is intended to give workers and their families time to seek new employment or navigate changes in their immigration status without the immediate pressure of leaving the country.

In the absence of this grace period, foreign nationals who lose their jobs could face immediate deportation unless the U.S. Citizenship and Immigration Services (USCIS) chooses to exercise discretion to excuse a lapse in their immigration status. This could lead to precarious situations for many individuals, particularly those with families, as they would have limited time to find new employment or make necessary arrangements for their departure.

The proposed change occurs within a broader context of tightening U.S. immigration policies under the current administration. The Trump administration has pursued various measures aimed at restricting immigration, including plans to significantly increase the costs associated with H-1B visas. This includes proposals for a permanent fee exceeding $100,000 for employers seeking to hire skilled foreign workers, a move that has raised concerns among businesses that depend heavily on this talent pool.

The H-1B visa program is particularly vital for technology companies and consulting firms, which often rely on skilled professionals from abroad to fill gaps in expertise and meet labor demands. Notably, Indian nationals constitute a substantial majority of H-1B beneficiaries, accounting for approximately 71% of successful applicants in the 2024 fiscal year. This highlights the program's importance for the Indian workforce, which has been a significant contributor to the U.S. economy, particularly in high-tech sectors.

Currently, the U.S. government issues 65,000 H-1B visas annually, along with an additional 20,000 reserved for individuals with advanced degrees from U.S. institutions. These visas are typically granted for a duration of three years and can be renewed, allowing for longer-term employment in the United States. However, the potential removal of the grace period raises questions about the viability of these positions for foreign workers, particularly in a rapidly changing job market.

Critics of the proposed rule, including Ajay Jain Bhutoria, a former White House adviser under President Joe Biden, have expressed strong opposition. Bhutoria argues that the existing 60-day grace period should be expanded rather than eliminated, suggesting a 180-day window would be more humane and practical. He emphasizes the challenges faced by high-skilled workers who experience sudden job loss, stating that the current 60-day period is already insufficient for individuals to manage their affairs adequately.

Bhutoria warns that without this grace period, workers and their families could be thrust into sudden upheaval, with little time to arrange housing, manage their children's schooling, or deal with other personal matters. He highlights the emotional and logistical burdens placed on individuals who must navigate these changes under pressure, emphasizing that the lack of time would hinder their ability to transition smoothly.

As the proposal moves forward through the review process, stakeholders from various sectors, including businesses, immigration advocates, and affected individuals, will likely engage in discussions about its potential impacts. The outcome of this proposal could have far-reaching consequences for the landscape of U.S. immigration policy, particularly for skilled foreign workers who contribute significantly to the economy. The public comment period will serve as an important platform for expressing opinions and concerns regarding the proposed changes, and it remains to be seen how the administration will respond to the feedback received.