Full Breakdown
Trump Administration Proposes End to 60-Day Grace Period for H-1B and Other Visa Holders
By Drooid · · How we work
Core Proposal
The Department of Homeland Security (DHS) announced a rule change that would eliminate the discretionary 60-day grace period that currently allows certain employment-based non-immigrant workers—most notably H-1B visa holders—to remain in the United States after a job loss. Under the proposed regulation, covered workers would be considered out of status the day their qualifying employment ends unless they already possess another lawful basis to stay. The notice was published in the Federal Register on September 10 and is scheduled for official publication on September 11, after which a 60-day public-comment period will begin.
Background & Context
The grace period was added to federal regulations in 2017 to separate a worker’s immigration status from the specific employer that sponsored the visa, thereby giving foreign professionals time to seek new sponsorship, change status, or arrange departure.
Data & Statistics
- USCIS data show that from fiscal year 2018 through May 20, 2026 more than 1.9 million petitions and applications potentially required officers to determine whether the grace period applied.
- DHS estimates an average of 65,752 covered workers per year experienced an employment termination or change between fiscal years 2021-2025; about 99 percent of this group held H-1B status.
- Of those, roughly 3,795 workers per year filed a new Form I-129 petition within the 60-day window, while others pursued status adjustments or extensions.
- The rule would also affect E-1, E-2, E-3, H-1B1, L-1, O-1, and TN visa categories, as well as dependent family members.
Official Statements & Responses
The agency cites Supreme Court precedents such as *FCC v. Fox Television Stations* and *Motor Vehicle Manufacturers Association v. State Farm* to justify the policy shift.
Criticism & Opposition
The U.S.
> “Finding the right talent can’t happen in zero days.” — The US Chamber, *Bloomberg Law*
> “We encourage the administration to carefully weigh the proposal’s impact on workforce flexibility, talent retention, and U.S. competitiveness.” — Neil Bradley, executive vice president and chief policy officer at the Chamber, *Bloomberg Law*
Jeff Joseph, president of the American Immigration Lawyers Association, noted that many affected workers have purchased homes, paid taxes, and enrolled children in schools, and that eliminating the grace period would shift visa processing to an already overburdened State Department.
Conflicting Reports & Gaps
DHS acknowledges that its records do not precisely capture how many workers actually relied on the grace period, noting only proxy estimates. No definitive data are available on the number of families who would be forced to leave the country immediately, creating uncertainty about the rule’s broader social impact.
What’s Next
The rule will be published in the Federal Register on September 11 and will remain open for public comment for 60 days. After the comment period, DHS must consider the feedback before issuing a final regulation. Stakeholders have indicated that the final rule could face an administrative-law challenge under the Administrative Procedure Act if the agency’s justification is deemed insufficient.
