WASHINGTON, D.C. — The Department of Homeland Security has proposed eliminating the 60-day grace period that allows certain foreign workers to remain in the U.S. after losing their jobs. Under the proposal, foreign workers whose employment ends would be considered immediately removable from the U.S. if they no longer work for the employer linked to their visa status.

The agency published the proposal in the Federal Register on September 10, 2026. The rule targets multiple nonimmigrant visa categories, including H-1B visa holders, E-1 treaty trader visa holders, and E-2 treaty investor visa holders. Additional classifications affected by the change include L-1 visa holders for executives and managers with international firms, as well as O-1 visa holders for individuals with extraordinary ability in science, sports, or the arts. The proposal also applies to TN visa holders for qualified Canadian and Mexican professionals, H-1B1 visa holders for nationals of Chile and Singapore, and E-3 visa holders for Australian citizens.

The Department of Homeland Security stated the proposal "restores a direct relationship between an alien’s nonimmigrant status and the specific employment or activity that formed the basis of his or her admission or grant of status in the United States and reduces administrative burden." The agency further stated that the harm of the up to 60-day discretionary grace period outweighs the potential benefit it provides to impacted aliens, employers, dependents, and the community. Department calculations indicate that nearly 4,000 workers per year utilize the grace period to submit a new nonimmigrant worker petition after a layoff or resignation. More than 99% of the workers utilizing the grace period are H-1B visa holders.

To assess the scope of the policy, the Department of Homeland Security calculated that USCIS assessed 1.9 million petitions or applications between October 1, 2017, and May 20, 2026, to determine if the 60-day grace period applied. The agency stated it assumes that entities would offer the same jobs to equally qualified U.S. workers, go through the I-129 petition process, or reassign the work to other current employees. The public comment period for the proposal is 60 days. The 60-day grace period for these visa categories was established in early 2017 during the Obama Administration.

Why It Matters

The proposal affects a population of foreign workers, with FWD.us estimating 730,000 H-1B visa holders and 550,000 dependents currently in the U.S. The Department of Homeland Security, established in 2002 as a federal executive department, argues that the current grace period creates an administrative burden and disconnects legal status from employment. This regulatory change follows other recent adjustments to the H-1B program, including a weighted selection process implemented in late 2025 and various fee proposals by the Trump Administration. The immediate removability clause marks a shift from the discretionary period established in 2017, potentially altering how employers manage workforce transitions and how workers maintain their legal standing during job changes.

Timeline

On December 29, 2025, the Federal Register published Volume 90 Issue 245, noting that the U.S. Department of Homeland Security (DHS) is amending its regulations governing the process by which U.S. Citizenship and Immigration Services (USCIS) selects H-1B registrations for unique beneficiaries for filing of H-1B cap-subject petitions.

An April 2026 U.S. Citizenship and Immigration Services report indicated that citizens from India make up the bulk of H-1B visa holders, with China as the second largest group. In August 2026, the Trump Administration expanded a $4,000 biometric and security fee to cover extension applications from employers with a large foreign workforce and proposed a $103,265 fee for certain H-1B petitions. On August 29, 2026, the Coast Guard established a temporary special local regulation for certain waters of the Choptank River near Cambridge, MD, to provide for the safety of life during a power boat racing event. On September 10, 2026, the Department of Homeland Security stated it assumes that entities would offer the same jobs to equally qualified U.S. workers, go through the I-129 petition process, or reassign the work to other current employees, and also stated that the harm of the up to 60-day discretionary grace period outweighs the potential benefit it provides to impacted aliens, employers, dependents, and the community.

What's New

The Department of Homeland Security published the proposal in the Federal Register on September 10, 2026. The Homeland Security Department published a proposed rule titled "Eliminating the Discretionary 60-Day Grace Period" on 2026-09-11. The United States Department of Homeland Security is a United States federal executive department that was established in 2002.

How Sources Differ

The Department of Homeland Security stated it assumes that entities would offer the same jobs to equally qualified U.S. workers, go through the I-129 petition process, or reassign the work to other current employees, while the Department of Homeland Security Federal Register notice states that the Department of Homeland Security has proposed eliminating the 60-day grace period that allows certain foreign workers to remain in the U.S. after losing their jobs.

The Department of Homeland Security stated the proposal "restores a direct relationship between an alien’s nonimmigrant status and the specific employment or activity that formed the basis of his or her admission or grant of status in the United States and reduces administrative burden," whereas the Department of Homeland Security Federal Register note calculates that nearly 4,000 workers per year utilize the grace period to submit a new nonimmigrant worker petition after a layoff or resignation.

Federalregister.gov reports that the Homeland Security Department published a proposed rule titled Eliminating the Discretionary 60-Day Grace Period on 2026-09-11, while the Department of Homeland Security Federal Register notice calculates that nearly 4,000 workers per year utilize the grace period to submit a new nonimmigrant worker petition after a layoff or resignation.

Federalregister.gov reports that the Homeland Security Department published a proposed rule titled Eliminating the Discretionary 60-Day Grace Period on 2026-09-11, while the Department of Homeland Security Federal Register notice calculates that USCIS assessed 1.9 million petitions or applications between October 1, 2017, and May 20, 2026, to determine if the 60-day grace period applied.