Trump administration proposes ending 60-day grace period after job loss for H-1B, other visa holders

U.S. Agencies Propose Ending the 60‑Day Grace Period for Visa‑Holders Who Lose Jobs

Washington, D.C. – U.S. Citizenship and Immigration Services (USCIS) and the Department of Homeland Security (DHS) are preparing to publish a rule that would eliminate the 60‑day “grace period” that currently allows certain non‑immigrant visa holders to stay in the United States while they look for new employment after losing their job.

The proposal, set for release to the Federal Register on September 11, 2026, would mean that any worker on a non‑immigrant visa—particularly those on H‑1B visas, which allow U.S. employers to sponsor skilled professionals—would have to leave the country immediately if they are no longer employed by the sponsoring employer. The rule would also remove the administrative process of determining how long a grace period applies, a procedure that DHS says is “time‑consuming and complex.”

A Return to the Status‑Employment Link

“The 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 draft rule states. DHS argues that tying status directly to employment would “better promote program integrity and be more consistent with statutory purpose.”

The current grace period, which allows visa holders a 60‑day window to secure new employment, was introduced in 2016 and took effect on January 17, 2017—just days before President Donald Trump was inaugurated. Prior to that, the U.S. had no such grace period for most non‑immigrant workers.

Impact on Workers and Employers

Under the new rule, employers would no longer be able to rely on the grace period as a buffer when a sponsored employee loses their job. DHS notes that, in most cases, employers would offer the same job to qualified U.S. workers or reassign the work to current employees. However, the agency acknowledges that some employers may experience a temporary loss of productivity during the transition.

The proposal also includes language that the change would “favor U.S. workers,” as it would limit the number of foreign‑born workers available for hiring when companies face layoffs.

Public Comment and Legal Process

The rule will be open to public comment for two months after its publication. Comments and evidence presented during that period can influence whether the rule is finalized and implemented. If approved, the new regulation would immediately alter the legal status of thousands of non‑immigrant workers who currently rely on the grace period to secure new jobs.

Broader Context

The proposal arrives amid a broader debate over U.S. immigration policy, including recent actions by the State Department that have revoked more than 175,000 visas during the Trump administration. While the proposed rule focuses specifically on employment‑linked visas, it is part of a larger effort to tighten the link between immigration status and job requirements.

USCIS and DHS have not yet responded to requests for comment, and the White House has not issued a statement on the draft rule. The final decision will hinge on the outcome of the forthcoming public‑comment period.

For more information on the proposed rule and how to submit comments, visit the Federal Register website.