DHS Proposes Eliminating 60-Day H-1B Grace Period

The Department of Homeland Security has proposed a new immigration rule that would eliminate the 60-day grace period currently available to H-1B visa holders. This grace period has traditionally allowed foreign workers on H-1B visas to remain in the United States for up to 60 days after their employment ends or their visa status changes, providing a buffer for job transitions or departure arrangements.

The proposed change represents a significant shift in H-1B visa policy. Currently, the grace period offers flexibility for workers facing job loss or seeking new employment opportunities within the United States. Eliminating this provision would require H-1B holders to either secure new sponsorship immediately or depart the country promptly upon job termination.

The implications of this policy change could be substantial for the technology sector and other industries that heavily rely on H-1B workers. Companies would face increased pressure to maintain continuous employment for visa-sponsored workers, potentially limiting workforce flexibility during economic downturns or restructuring. Workers would lose the transition time to secure alternative employment or make relocation arrangements.

This proposal aligns with broader immigration enforcement initiatives focused on tightening visa regulations and reducing the duration of stay for temporary workers. The change would affect thousands of H-1B visa holders annually, particularly those in technology, healthcare, and specialized professional fields.

The proposed rule is subject to public comment and regulatory review before implementation. Industry groups, employer associations, and immigration advocates are likely to weigh in on the proposal, with perspectives varying based on their positions on immigration policy and labor market needs. The outcome could reshape how companies manage H-1B employment relationships and influence the attractiveness of the United States as a destination for skilled foreign workers.

Source: Cato Institute — Published: 2026-09-23T02:55:37.000Z

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Editorial note: This content was researched and generated on 2026-09-23. Facts and pricing are verified at time of writing and subject to change.