The US government on Sep. 10 local time published a proposed rule to eliminate the 60-day grace period for holders of various work visas, including H-1B. The move means that foreign employees, once laid off, would immediately lose their legal status and must either leave the country or change status, or otherwise face the risk of unlawful presence.
According to a notice from the Department of Homeland Security (DHS), the proposed rule would rescind the 60-day grace period policy that has been in place since 2017. The policy currently applies to H-1B, L-1, O-1, TN and other specified foreign professionals, allowing them up to 60 days after losing their jobs to find a new employer sponsor, change visa status, or arrange departure. DHS said eliminating the grace period would reduce its administrative burden.
Critics, however, pointed out that the move effectively shifts responsibility to the State Department and increases the financial burden on companies that lay off foreign workers. For the hundreds of thousands of H-1B visa holders working in technology, finance and other industries, removing the grace period means that if they are laid off, they will no longer have a buffer to find new employment and will face a much higher risk of being forced to leave immediately.
The rule has completed federal review (OIRA review) and could take effect at any time. Analysts noted that this is the latest in a series of tightening measures on H-1B policies by the Trump administration in 2026. Previously, authorities imposed a surcharge of up to US$100,000 on H-1B visa applications, raising the entry threshold; now, eliminating the 60-day grace period further removes the "safety cushion after failure." Coupled with tighter public charge rules, the space for foreign talent to work and live in the United States is being comprehensively squeezed.
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