Trump administration formally proposes scrapping 60-day grace period for laid-off H-1B workers

The US Department of Homeland Security has proposed removing the 60-day grace period that allows certain foreign workers to remain in the country after their employment ends. The proposal would require affected workers to leave the United States immediately unless they have another legal basis to stay.

The proposal, issued by US Citizenship and Immigration Services, would remove regulation 8 CFR 214.1(l)(2). The current rule allows eligible workers to remain in the US for up to 60 days after losing or leaving a job, or until their authorised stay expires, whichever comes first.

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The grace period also applies to eligible dependants.

Visas covered by the proposal

The proposed change would affect workers in the following visa categories:

• E-1 international traders
• E-2 treaty investors
• E-3 Australian specialty workers
• H-1B skilled workers
• H-1B1 workers from Singapore and Chile
• L-1 intracompany transferees
• O-1 workers with extraordinary ability
• TN professional workers from Canada and Mexico

Under the proposal, workers would generally be considered to have failed to maintain their immigration status as soon as their employment or qualifying activity ends.

“The proposed rule, by removing the up to 60-day discretionary grace period, would better align the regulations with the statutory provisions governing the relevant classifications by requiring an alien to depart from the United States immediately upon his or her failure to maintain the employment or activity that was the basis for the nonimmigrant classification or status,” DHS said in the notice.

DHS says rule would reduce administrative work

DHS said the grace period creates an administrative burden because officers must assess whether it applies when workers file petitions or applications after their employment ends.

The department said removing the provision would restore a direct link between a worker’s immigration status and the job or activity that supported the visa.

The proposal also says employers could offer the same positions to qualified US workers or file a new Form I-129 petition for a foreign worker, depending on their workforce needs.

“In some situations, aliens who have gone abroad can be readmitted for employment if the I-129 petition filed on their behalf by a new employer is approved,” the notice said.

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DHS estimates thousands could be affected

According to DHS data, 328,758 primary beneficiaries in the affected visa categories experienced job loss or changed employers between fiscal years 2021 and 2025.

During that period, 18,975 beneficiaries had a new Form I-129 petition filed on their behalf within the 60-day period. This represented 5.77% of the affected workers.

Around 99% of the beneficiaries in the data belonged to the H-1B category, DHS said.

In fiscal 2025, 5,178 beneficiaries had a new employer file a Form I-129 petition for them within the grace period. DHS estimated that 2,886 employers had filed such petitions that year.

Impact on workers and employers

DHS acknowledged that the proposal could affect workers, employers, families and local communities that have relied on the existing rule.

Workers who lose their jobs could have to leave the country before finding a new employer or completing immigration paperwork. Their dependants could also lose their status because it is tied to the principal worker’s status.

H-1B workers eligible under the American Competitiveness in the 21st Century Act may begin new employment after a new, non-frivolous Form I-129 petition is filed. However, workers in several other affected categories generally need the new petition to be approved before changing employers.

The proposal also notes that employers may face additional costs because they could have to pay for a worker’s return transportation after termination.

Proposal is not yet final

The notice is scheduled for publication in the Federal Register on September 11. DHS has proposed a 60-day public comment period, after which it will review submissions before deciding whether to issue a final rule.

The proposal will not take effect unless DHS finalises it.