US proposes eliminating 60-day H-1B grace period: 1.3 million workers at risk
The Department of Homeland Security is reviewing a proposal to scrap the 60-day grace period for H-1B workers after job loss, potentially affecting 730,000 workers and their families amid widespread tech layoffs.
US proposes eliminating 60-day H-1B grace period: 1.3 million workers at risk
The US Department of Homeland Security has submitted a proposal to the White House that could eliminate the 60-day grace period currently available to H-1B visa holders and other foreign workers who lose their jobs, potentially affecting approximately 1.3 million people including workers and their families.
The proposal, officially titled 'Eliminating the Discretionary 60-day Grace Period' (RIN 1615-AD22), was sent to the White House Office of Management and Budget for review on August 6, according to regulatory filings. The measure would remove the protection currently available to an estimated 730,000 H-1B workers residing in the United States, along with approximately 550,000 dependent visa holders.
Disproportionate impact on Indian professionals
The proposed change would have a particularly significant impact on Indian nationals, who received 71 per cent of all H-1B approvals in fiscal year 2024, according to official US Citizenship and Immigration Services data. Chinese nationals accounted for approximately 12 per cent of approvals, making India by far the largest beneficiary group in the programme.
Computer-related occupations dominate H-1B positions, accounting for 65 per cent of all roles, with architecture, engineering and surveying jobs representing another 9 per cent. This concentration in the technology sector becomes especially relevant as more than 110,000 technology workers have lost jobs globally in 2026, according to industry tracking data.
How the grace period currently works
Under regulations that took effect on January 17, 2017, eligible non-immigrant workers can remain in the US for up to 60 days after their employment ends, or until the end of their authorised stay, whichever comes first. The provision was introduced in November 2016 during the final days of the Obama administration as part of broader regulations designed to provide relief to high-skilled workers caught in employment-based green card backlogs.
During the grace period, workers can search for a new employer willing to sponsor them, explore changing to another immigration status, or make arrangements to leave the country if they cannot secure another option. The rule also gives employers more flexibility to hire foreign workers already in the United States.
Competitive environment for new sponsorship
The elimination of the grace period would occur against the backdrop of an increasingly competitive H-1B environment. For the fiscal year 2026 cap season, USCIS received registrations for 336,153 unique beneficiaries but selected only 118,660, representing a selection rate of approximately 35.3 per cent. This marked a significant drop from 470,342 registrations received in fiscal year 2025.
In fiscal year 2024, USCIS approved 399,395 H-1B petitions overall, broken down into 141,205 initial employment approvals and 258,190 renewals. The data underscores the scale of the programme and the volume of workers who could potentially be affected by a sudden job loss.
Broader pattern of policy changes
The grace period proposal represents the latest in a series of H-1B policy changes. In September 2025, the Trump administration imposed a $100,000 fee on new H-1B petitions filed on behalf of workers outside the United States, representing the most substantial cost increase in the programme's history.
The proposal has not been finalised and DHS has not yet made full details public. If it clears White House review, it would be published in the Federal Register for public comment before any final decision. The proposal could be changed, delayed or withdrawn during the regulatory process.
Current status and next steps
For now, the existing 60-day grace period remains in effect. The provision currently applies to several categories of non-immigrant workers, including E-1 treaty traders, E-2 treaty investors, E-3 Australian professionals, H-1B specialty occupation workers, H-1B1 workers from Chile and Singapore, L-1 intracompany transferees, O-1 individuals with extraordinary ability, and TN professionals from Canada and Mexico. Dependants of eligible workers are also covered.
If the grace period is ultimately eliminated, affected workers would have significantly less time to secure new sponsoring employers, explore alternative visa options or prepare to leave the United States following an unexpected termination. Workers facing employment changes are advised to monitor official DHS and USCIS updates and consider consulting qualified US immigration lawyers about their individual circumstances.
