US Proposes Ending 60-Day Grace Period for H-1B Workers After Job Loss
Washington — The Trump administration has proposed eliminating the up-to-60-day grace period that allows H-1B workers and several other employment-based visa holders to remain in the United States after losing their jobs.
The Department of Homeland Security proposal would remove the provision under 8 CFR 214.1(l)(2), which applies to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN visa holders and their dependents. The proposal is scheduled for publication in the Federal Register on Friday.
If finalized, workers whose employment or qualifying activity ends would generally have to leave the United States unless they have another authorization allowing them to remain.
DHS said the existing grace period “disconnects the alien’s lawful status from the very basis of eligibility” for the affected employment-based nonimmigrant classifications.
The department said the change would restore its earlier policy under which workers were expected to depart once employment with their sponsoring employer ended.
Under the current rule, eligible workers and their dependents can remain in the country for up to 60 days after employment ends, or until the expiration of their authorized validity period if that occurs sooner. The grace period is discretionary and can be shortened or eliminated by DHS.
The proposed change would “better align the regulations with the statutory provisions governing the relevant classifications,” DHS said, while also reducing the administrative burden on U.S. Citizenship and Immigration Services.
DHS acknowledged that some workers could lose income if they need additional time to search for employment and are required to leave the country before beginning a new job.
The department also said the proposal could result in a small increase in referrals from USCIS to the Justice Department’s immigration court system and additional demands on Immigration and Customs Enforcement.
The current grace period was introduced through a rule issued in 2016 that took effect in January 2017. It was intended to promote “job portability, stability, and flexibility” for high-skilled nonimmigrant workers whose employment ended before their authorized petition period expired.
The provision also allows some workers to pursue a change or extension of status, adjustment to permanent resident status or a petition sponsored by a new employer while remaining in the United States.
DHS said it now believes the earlier rulemaking did not adequately consider the negative effects of the grace period. The department said eliminating it would improve program integrity and restore a direct link between a worker’s immigration status and the employment or activity that formed the basis for admission.
The proposal is not a final rule, and DHS is seeking public comments.
DHS data cited in the proposal showed that an average of 65,752 primary beneficiaries in the affected visa categories either lost their jobs or changed employers annually from fiscal years 2021 through 2025. Of the 328,758 workers affected during that period, 99 percent were H-1B visa holders.
The department estimated that an average of 3,795 workers each year had a new Form I-129 petition filed by another employer during the existing grace period. The median annual wage in fiscal year 2025 for affected H-1B workers who secured a new petition during that period was $131,000. (Source: IANS)
