The Trump administration has proposed a rule to eliminate the 60-day grace period for H-1B and other temporary visa holders, requiring foreign workers to leave the U.S. immediately upon losing employment. Published by the Department of Homeland Security on September 11, 2026, the proposal aims to reduce administrative burdens and redirect jobs to American workers. The policy faces a 60-day public comment period but threatens major disruptions for tech giants and thousands of skilled Indian professionals.
H-1B grace period elimination proposal
- ▪The U.S. Department of Homeland Security proposed a rule on September 10, 2026, to eliminate the discretionary, maximum 60-day grace period for foreign workers on H-1B and other temporary visas after job loss
- ▪The 60-day grace period was originally established in 2016 under Obama-era regulations to enhance job portability, stability, and flexibility for high-skilled foreign workers
- ▪The proposed rule, titled "Eliminating the Discretionary 60-day Grace Period," would apply to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants and their dependents
Trump administration immigration restrictions
- ▪The proposal to end the 60-day grace period is part of a series of restrictive changes to the U.S. legal immigration system enacted by President Donald Trump since returning to office in January 2025
- ▪In August 2026, the U.S. government proposed a new $103,265 application fee for cap-subject H-1B visas, following a previously vacated $100,000 fee announced in September 2025
- ▪The Trump administration has introduced higher visa fees for skilled workers and paused immigrant visa appointments at U.S. missions globally to implement a new training program
Foreign worker immediate departure requirement
- ▪If the proposal is finalized, foreign workers facing job loss would be required to depart the United States immediately unless they have separate authorization to remain
- ▪The U.S. Department of Homeland Security acknowledged that eliminating the grace period could lead to some affected foreign nationals being issued Notices to Appear, initiating deportation proceedings
Tech company workforce disruption
- ▪Top H-1B visa sponsors that could face workforce disruption include consulting firms Deloitte, PwC, and Ernst & Young, alongside outsourcing companies Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree
- ▪The elimination of the grace period would significantly impact Indian technology workers, who represent a major portion of the specialty occupation workers hired under the annual cap of 65,000 H-1B visas
- ▪Berardi Immigration Law stated that the proposed rule change would sharply compress the timeline that corporate human resources teams have to manage layoffs and offboarding for foreign national employees
DHS implementation process
- ▪The U.S. Department of Homeland Security stated that the proposal restores a direct relationship between a nonimmigrant's status and their specific employment while reducing administrative burdens
- ▪The U.S. Department of Homeland Security published the proposed rule in the Federal Register on September 11, 2026, opening a 60-day public comment period before the rule can be finalized
American worker job opportunities
- ▪The U.S. Department of Homeland Security stated that jobs vacated by departing foreign workers could instead be offered to equally qualified American workers
- ▪The U.S. Department of Homeland Security presumes that employers will either hire American workers or go through the Form I-129 petition process to re-employ foreign workers who have departed
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