DHS moves to scrap 60-day grace period for H-1B workers after White House review

For nearly a decade, foreign workers on H-1B, L-1, O-1, E-1, E-2, E-3, H-1B1, TN visas and their dependents have been allowed a 60-day window to find new sponsorship or change status after employment ends. The Department of Homeland Security has now drafted a rule to end that grace period, and the draft has passed a critical White House review. If finalized, the change would force many workers to depart the United States immediately after a layoff, unless USCIS exercises discretion to overlook the lapse.

Indian nationals, who accounted for 71 % of successful H-1B petitions in fiscal year 2024, would be especially impacted. Ajay Jain Bhutoria, a former White House adviser, criticized the plan and suggested a 180-day extension instead. The next step is publishing the proposal in the Federal Register, which will trigger a public comment period before any final rule is issued. Until then, the existing 60-day grace period remains in effect.