US moves to end 60-day grace period for foreign workers who lose jobs

Foreign workers in the United States on temporary employment visas could have significantly less time to find a new job or make arrangements to leave the country if the government moves forward with a proposal to eliminate a 60-day grace period after employment ends.

The Department of Homeland Security has proposed removing the provision that allows certain foreign workers to remain in the country for up to 60 days after losing their jobs, or until the expiration of their Form I-94, whichever comes first.

The proposal has completed review by the Office of Management and Budget and is expected to be published in the Federal Register, where the government will open it to public comment. It is not yet a change in immigration law.

What they are saying

The current grace period, introduced in 2016 and effective the following year, was intended to give workers facing an unexpected job loss time to find another employer, pursue an eligible change of status or prepare to depart the United States.

• The proposed rule would affect several categories of temporary foreign workers, including those holding H-1B and H-1B1 visas, as well as L-1, O-1, E-1, E-2, E-3 and TN classifications. Dependents could also be affected.
• For H-1B workers, the change could be particularly consequential. The visa is widely used by technology companies and other employers to hire highly skilled professionals from abroad, including large numbers of Indian workers.
• Under the current system, an eligible H-1B worker whose employment is terminated can generally use the 60-day window to secure another position and have a new employer file the appropriate paperwork. The period can also provide time to explore other immigration options or arrange an orderly departure.

Without the grace period, losing a job could create an immediate immigration problem. Workers could have little time to secure another lawful status or leave the country before facing the consequences of remaining after their authorized stay ends.

There is a measure of discretion in the system. U.S. Citizenship and Immigration Services can, in certain circumstances, excuse a lapse in status and approve a subsequent application. But that authority would not necessarily provide workers with the predictability of a fixed grace period.

Get up to speed

Earlier this month, the administration proposed a $103,265 fee for new H-1B petitions, seeking to make permanent a charge that had previously been introduced temporarily and challenged in federal court. The proposal, issued by DHS, opened a 30-day public comment period and could be finalized before the end of 2026.

The H-1B program, widely used by U.S. technology companies, universities and research institutions, is capped at 65,000 visas annually, with another 20,000 available to workers with qualifying advanced degrees from U.S. universities.

The administration has also moved to broaden visa enforcement. The State Department is preparing to revoke the tourist and business visas of as many as 200,000 foreign nationals who have applied for asylum after entering the United States, according to documents obtained by The Associated Press and U.S. officials.

What you should know

The proposed end to the 60-day grace period comes as the Trump administration considers several changes that could make the U.S. temporary-worker system more restrictive and expensive.

In March, the Department of Labor was reviewing a proposal that could raise the prevailing wages employers must pay foreign workers under programs including H-1B, H-1B1, E-3 and the PERM labor-certification process.

The prevailing-wage system sets minimum salary levels according to factors such as occupation, experience and location. Higher wage requirements could increase employers’ costs and make some lower-paid H-1B positions less attractive, particularly for smaller companies and early-career professionals.