The United States Department of Homeland Security (DHS) has introduced a regulatory proposal that would eliminate the standard up-to-60-day grace period currently granted to H-1B and several other employment-based non-immigrant visa holders after job termination. If finalized, the shift would require affected workers and their dependents to depart the United States immediately upon the conclusion of their employment, significantly tightening the window to secure alternative sponsorship or change immigration status.
The forthcoming proposal targets the provision outlined in 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 classifications along with their dependents.
Rationale Behind the Proposed Regulatory Shift:
Federal officials argue that the existing grace period creates a regulatory disconnect. According to DHS, allowing workers to remain in the country after their employment ends separates their lawful status from the foundational eligibility criteria of their visas.
The administration framed the proposed revision as a return to older agency policy, which expected foreign nationals to leave the country as soon as their relationship with the sponsoring employer concluded. DHS noted that the change aims to better align regulations with foundational statutory provisions while easing the administrative workload on U.S. Citizenship and Immigration Services (USCIS).
Under the framework established by a 2016 rule that went into effect in January 2017, the discretionary grace period was designed to foster job portability, stability, and flexibility. It allowed high-skilled professionals time to file for a change of status, adjust to permanent residency, or transfer their visa to a new employer.
Impact on Workers and Immigration Enforcement:
While prioritizing program integrity, the agency acknowledged potential negative outcomes. The proposal notes that displaced workers could suffer lost income if forced to leave the country before securing new employment or completing job searches. Furthermore, DHS concedes that the change could marginally increase referrals from USCIS to the Department of Justice immigration court system and heighten demands on Immigration and Customs Enforcement (ICE).
The department stated that the original rulemaking failed to adequately weigh the drawbacks of the grace period. Removing it, officials contend, restores a direct link between legal presence and active participation in the specific job or activity that justified admission.
Data and Next Steps:
Federal data highlights the scale of worker transitions within these visa categories. Between fiscal years 2021 and 2025, an annual average of 65,752 primary beneficiaries totaling 328,758 workers over the period either lost their jobs or changed employers. H-1B visa holders accounted for 99 percent of this demographic.
Among those affected, DHS data shows an estimated 3,795 workers annually managed to have a new Form I-129 petition filed by an alternative employer within the current 60-day window. The median annual wage for H-1B workers who secured a new petition during fiscal year 2025 stood at $131,000.
The initiative has not yet been codified into law. DHS has opened the measure to public review, inviting comments through the Federal Register before determining a final rule.
