US proposes scrapping 60-day visa grace period for laid-off foreign workers

What is the proposed change to US visa rules?

The US Department of Homeland Security has proposed scrapping the 60-day grace period that allows foreign workers on H-1B and other employment visas to remain in the country and find a new job after being laid off.

If finalised, the rule will force highly skilled foreign nationals to leave the United States immediately upon losing their jobs, unless they can find another immediate legal way to stay. It marks a sharp reversal of a decade-old policy, introducing a harsh new reality for hundreds of thousands of foreign professionals, particularly in the technology sector.

Currently, workers on visas such as the H-1B, L-1, and O-1 have a discretionary window of up to 60 days—or until their authorised stay expires, whichever is shorter—to secure a new employer, apply for a status change, or pack up their lives. The Obama administration introduced this safety net in 2016 to give workers job portability and provide US employers with a stable pool of talent.

Who will be affected by the new rule?

Under the proposal, the Department of Homeland Security would eliminate the grace period for a wide range of non-immigrant classifications, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN visa holders, as well as their dependents.

For Indian tech workers, who form the backbone of the US technology workforce, the stakes are incredibly high. In the fiscal year ending September 2025, Indian nationals accounted for 50.3 per cent of approved initial H-1B petitions and 77.6 per cent of continuing visa approvals. Under the new rules, a sudden layoff would mean an immediate exit, requiring workers to return to India and apply for a new visa at a US embassy or consulate only after securing another job offer.

Why is the government eliminating the grace period?

The department is now arguing that this buffer zone has disconnected a worker's legal status from the very basis of their visa. In its draft proposal, the department stated that the grace period 'disconnects the alien’s lawful status from the very basis of eligibility' and failed to fully account for its negative impacts.

Even the department has acknowledged the immense personal toll of the proposal. The draft notes that many affected workers have purchased homes, paid taxes, and otherwise invested in their local communities, assuming they would have a two-month cushion if their employment ended unexpectedly. Yet, the government has concluded that the administrative burden on US Citizenship and Immigration Services, alongside the desire to strictly link visas to active employment, outweighs these human and economic costs.

What happens next for foreign workers?

The proposed rule, titled 'Eliminating the Discretionary 60-day Grace Period', is open for public comment for 60 days following its publication in the Federal Register on Friday, 11 September 2026.

The change represents the latest move by President Donald Trump's administration to curb legal immigration since he returned to office in January 2025.

Immigration experts warn of swift legal consequences if the rule is finalised. According to the immigration law firm Fragomen, workers who do not leave immediately could receive Notices to Appear, the first step in formal deportation proceedings. The risk is highest for those on H-1B, O-1, and P visas, where employers are legally required to notify the government as soon as employment ends.

Cyrus D. Mehta, a US immigration attorney, noted that without the grace period, workers who lose their jobs would 'generally be required to depart the US immediately,' unless immigration authorities make a rare exception to forgive the lapse in status.