WASHINGTON — The Trump administration has proposed eliminating the up-to-60-day grace period that allows H-1B workers and several other employment-based visa holders to remain in the United States after losing their jobs.
The Department of Homeland Security proposal would remove the provision at 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 visa holders and their dependents.
If finalized, workers whose employment or qualifying activity ends would generally be expected to leave the United States unless they have another legal basis to remain.
DHS said the current grace period “disconnects the alien’s lawful status from the very basis of eligibility” for the affected employment-based nonimmigrant classifications.
The proposal would restore what DHS described as its previous policy, under which workers were expected to depart once employment with their sponsoring employer ended.
Under current regulations, eligible workers and their dependents may remain in the United States for up to 60 days after employment ends, or until the expiration of their authorized stay if that occurs sooner. The grace period is discretionary and may be shortened or eliminated by DHS.
The department said eliminating the provision would “better align the regulations with the statutory provisions governing the relevant classifications” and reduce the administrative burden on U.S. Citizenship and Immigration Services.
DHS acknowledged that some workers could lose income if they need more time to search for a job but are required to leave the country before beginning new employment. The department also said the change could result in a modest increase in referrals from USCIS to immigration courts and place additional demands on Immigration and Customs Enforcement.
The grace period was introduced in a 2016 rule that took effect in January 2017 and was intended to promote “job portability, stability, and flexibility” for highly skilled nonimmigrant workers whose employment ended before their authorized petition period expired.
The current rule also allows some workers to seek a change or extension of status, adjustment to permanent resident status or a new employer-sponsored petition while remaining in the United States.
DHS said it now believes the earlier rule did not sufficiently consider the potential negative effects of the grace period. Eliminating it, the department said, would strengthen program integrity and restore a direct connection between a worker’s immigration status and the employment or activity that formed the basis for admission.
The proposal is not yet final, and DHS is seeking public comments.
DHS data cited in the proposal showed that an average of 65,752 primary beneficiaries in the affected visa categories either lost jobs or changed employers annually from fiscal years 2021 through 2025. Of the 328,758 workers affected during that period, 99 percent were H-1B visa holders.
The department estimated that about 3,795 workers each year had a new Form I-129 petition filed by another employer during the existing grace period. The median annual wage in fiscal year 2025 for affected H-1B workers who secured a new petition during that period was $131,000. (Source: IANS)
