The Department of Homeland Security has filed a notice of proposed rulemaking titled "Eliminating the Discretionary 60-day Grace Period." It was placed on public inspection at the Federal Register on September 10, 2026 and is scheduled to publish on September 11, 2026. It runs 69 pages and carries DHS Docket No. USCIS-2026-0364 (RIN 1615-AD22).
Here is the single most important sentence in this whole article: nothing has changed yet. The 60-day grace period is still in the regulations today. What has happened is that DHS has formally proposed to delete it and has opened the floor for public comment.
What the 60-day H-1B grace period actually is
Right now, if you are in the United States on an H-1B visa and your job ends, laid off, fired, or you resigned, the rule at 8 CFR 214.1(l)(2) says you are not treated as having fallen out of status straight away. You get up to 60 calendar days, or until your existing authorised stay expires, whichever comes first, to sort yourself out.
Those 60 days are what people use to find a new sponsoring employer, file a change of status, or wind up their life in the US in an orderly way. It is not only an H-1B benefit: the same provision covers E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN holders, and their spouses and children.
Worth knowing: this is not ancient law. The grace period was created by a DHS rule published in November 2016 and has only been in force since January 2017. DHS is now proposing to undo its own decade-old policy.
What DHS is proposing to change in 2026
The proposal is blunt: strike 8 CFR 214.1(l)(2) out of the regulations entirely. In the department's own framing, the aim is to restore what it calls a direct relationship between your immigration status and the specific job that got you that status in the first place.
If the rule were finalised as written, the consequence is stark. A worker in one of those classifications, plus their dependants, would be considered to have failed to maintain status the day after the employment ends. The expectation would be immediate departure from the United States, unless you are separately authorised to remain on some other basis.
DHS gives two reasons. First, it argues the grace period was never required by statute and sits awkwardly with law that ties each category to particular work for a particular employer. Second, it calls the grace period an administrative burden, counting roughly 1.9 million petitions and applications between fiscal year 2018 and May 2026 that officers had to check for grace period relevance.
The rule also spells out consequences applicants will not enjoy reading. DHS accepts some people will lose income, and expects a rise in Notices to Appear the document that starts removal proceedings, and more referrals to the immigration courts.
How many H-1B workers would this affect?
DHS put numbers in the rule, and they are worth sitting with. Using employers' withdrawn petitions as a proxy, the department estimates that on a five-year average 65,752 principal workers a year either lost a job or moved employer, with a high of 80,034 in FY 2023 and a low of 40,959 in FY 2021. Across FY 2021 to FY 2025 that is 328,758 people, and roughly 99% of them were H-1B.
What did those workers actually do inside the 60 days? DHS found that 5.77% had a new employer file a fresh petition for them, 1.70% filed to extend or change status, 0.59% filed for adjustment of status, and fewer than 0.1% applied for a compelling circumstances work permit. In other words, the grace period is a real-world bridge for tens of thousands of families each year, and the majority never even get across it.
What DHS considered but rejected
I always read this section of a proposed rule, because it tells you how much room there is to negotiate. DHS looked at three softer options and turned down all three.
- Removing the grace period for only some categories rejected, because the department says the statutory mismatch applies across the board.
- Shortening the grace period instead of deleting it rejected, because a 30-day window would still leave officers doing the same case-by-case analysis.
- Keeping it but demanding stricter evidence rejected, because officers would still have to verify employment end dates.
That said, DHS explicitly invites comments on the impact, including on people who built their lives around the current rule. This is not a done deal, and the comment process is a genuine avenue.
What you should do right now
Please do not panic-book a flight. Do this instead:
- Know that the 60 days still exist today. A proposed rule has no legal force. Only a published final rule, with an effective date, changes what you can rely on.
- Comment on the rule. Once it publishes on September 11, there is a 60-day comment window at regulations.gov under docket USCIS-2026-0364. Comments that cite a specific part of the rule and give real evidence carry the most weight.
- Build a buffer while you are employed. Keep your passport, I-94, approval notices and pay records current and in one place. If your employer is wobbling, start conversations early rather than after the termination letter.
- Ask about parallel routes. Employer-sponsored green card progress, a spouse's independent status, or a second country's skilled route are all worth exploring before you need them.
The honest bottom line
This is a serious proposal, and if finalised as drafted it would remove one of the few genuine safety nets in US employment-based immigration. But it is a proposal, filed, not final, with a comment period still ahead of it. Treat it as a reason to prepare, not to despair.
If you want help thinking through what this means for your specific status, your family's status or your longer-term plan, book a one-on-one consultation and let us look at it together.
Sources: Federal Register — Public Inspection: Eliminating the Discretionary 60-day Grace Period (DHS, doc. 2026-18631) · Regulations.gov — DHS Docket No. USCIS-2026-0364 · USCIS — Options for Nonimmigrant Workers Following Termination of Employment
Disclaimer: This post is general information based on a proposed rule that is not yet law and on the official rules in force at the time of writing. Immigration policy changes quickly, so please confirm your own situation with USCIS or USA.gov, or with a licensed US immigration attorney, before making any decision.