Perplexity
ChatGPT
Claude
Gemini
H-1B Shock for Indians: US Clears Plan to Scrap the 60-Day Grace Period for Foreign Workers
Previously, one small regulatory cushion has stood between an H-1B worker's sudden job loss and an immediate scramble to leave the country: the 60-day grace period. That cushion is now closer than ever to disappearing, and for the hundreds of thousands of Indian professionals who make up the bulk of H-1B holders in the United States, the implications are severe. Here, our EB-1A experts have discussed how the disappearance of the 60-day grace period could impact the H-1B workers in the US.
What DHS has actually proposed
On August 6, 2026, the Department of Homeland Security and U.S. Citizenship and Immigration Services submitted a proposed rule titled "Eliminating the Discretionary 60-day Grace Period" (RIN 1615-AD22) to the White House's Office of Information and Regulatory Affairs (OIRA) for review. The proposal cleared that review on August 27, listed as concluded "with changes." The next step is publication in the Federal Register which would open a public comment period usually lasting 30 to 60 days. The exact regulatory text is not yet public.
Immigration law firm Fragomen noted that if the grace period is eliminated, "foreign nationals whose employment ceases prematurely (and their dependents) would no longer be maintaining status and would generally be required to depart the United States immediately," unless USCIS separately exercises discretion to forgive the lapse. The current grace period remains fully in effect while the rule moves through federal review.
Where the grace period came from and who it covers
The 60-day grace period was created through a 2016 DHS regulation that took effect in early 2017. Under the rule, workers on H-1B, H-1B1, L-1, O-1, TN, E-1, E-2 and E-3 visas, along with their dependents, are not considered to have violated their status solely because their sponsoring employment ended. The grace period lasts for whichever is shorter: 60 days, or the remainder of the worker's authorized stay as reflected on their I-94. It was designed, in DHS's own original framing, to give workers "a reasonable period to address an unexpected employment termination without immediately falling out of status."
In practice, that window has functioned as a lifeline and given laid-off professionals time to find a new sponsoring employer, or even wind down their affairs and depart in an orderly way.
Why Indian H-1B applicants could be impacted the most
The proposal lands with outsized weight on Indian nationals because of how concentrated the H-1B program already is among them. In FY2024, 71% of approved H-1B petitions were for people born in India. In other words, any tightening of post-termination rules disproportionately affects the Indian professional community.
That anxiety is not merely theoretical. A Blind survey of 2,089 verified Indian professionals on U.S. work visas found that one in six said they, or someone close to them, had received a Notice to Appear (NTA) during what should have been their grace period, in some cases within just two weeks of job loss. "Multiple cases where NTAs were sent in 2 weeks," one user wrote on Blind. Another warned: "Immigration lawyers now advise leaving as soon as possible after the job ends otherwise you risk a permanent ban from the US." The same survey found 45% would consider returning to India if forced to leave after a layoff.
Sharp reactions from advocates and attorneys
The proposed elimination has drawn pointed criticism from immigration attorneys and community advocates. Ajay Jain Bhutoria, a former White House advisor, said in a public statement: "Scrapping the existing 60-day grace period entirely represents a severe regression that directly harms legal immigrants who have contributed significantly to the United States' technological and economic leadership." He urged regulators to reconsider: "I urge DHS and the administration to withdraw this proposal immediately and instead adopt a compassionate, pragmatic 180-day grace period that respects human dignity and protects America's competitive edge." Bhutoria warned eliminating the grace period would create "extreme psychological distress, financial ruin, and school disruptions" for families with children raised in the U.S.
Sarah Schroeder, an immigration attorney at DiRaimondo & Schroeder, said that if finalized, the proposal would leave workers and their dependents with "significantly less ability to remain in the US while pursuing a new employer or another immigration option." Klasko Immigration Law Partners issued a similar warning that eliminating the grace period would leave affected workers with little time to respond to an unexpected job loss.
Attorneys are also flagging a workforce-planning dimension. American immigration attorney Adrian Pandev pointed out that founders and employees currently rely on the grace period to file change-of-status petitions discreetly when starting new ventures. Without it, he said, "the employee is incentivised to not mention anything to their current employer until the new petition is filed or even approved."
What happens next
For now, the rule remains a proposal under federal review, not law. Once published in the Federal Register, it will open a formal public comment window. Until then, the existing 60-day window continues to apply, even as reports of expedited NTAs suggest enforcement realities on the ground may already be shifting ahead of any formal rule change.
The coming months carry unusual stakes for India's vast H-1B workforce. Stay tuned to GCEB1, as our EB-1A consultants bring every fresh minute of updates right to you. We wish you a safe and stress free immigration journey ahead.
Frequently asked questions
1. What is the H-1B 60-day grace period?
It's a discretionary window, up to 60 days, or until a worker's authorized stay expires, whichever is shorter, during which an H-1B worker (and certain other employment-based visa holders) who loses their job is not considered to have violated their immigration status.
2. Has the grace period actually been eliminated yet?
No. DHS has only submitted a proposed rule for review; it has not been published in the Federal Register or finalized. The current 60-day grace period remains fully in effect.
3. Which visa categories would be affected if the rule is finalized?
The proposal would affect H-1B, H-1B1, L-1, O-1, TN, E-1, E-2 and E-3 nonimmigrants, as well as their dependents whose status is tied to the principal visa holder.
4. Why are Indian professionals especially affected?
Indian nationals received 71% of approved H-1B petitions in FY2024, making them the largest single nationality group in the program and disproportionately exposed to any change in post-termination rules.
5. What happens if a worker's employment ends and the grace period is eliminated?
According to Fragomen, affected workers would generally be considered to have failed to maintain status and would be required to depart the U.S. immediately, unless USCIS separately chooses to exercise discretion to forgive the lapse.
6. What is the next procedural step for this rule?
The proposal must be published in the Federal Register, opening a public comment period, usually 30 to 60 days, during which affected parties can formally respond before any final rule is adopted.
7. Are workers already being affected before the rule is finalized?
Some visa holders and immigration lawyers report that Notices to Appear have been issued well before the current 60-day window ends, in some cases within about two weeks of job loss.
8. What alternatives do H-1B workers have if the grace period is eliminated?
Advocacy and legal sources point to options such as applying for a change of nonimmigrant status, seeking adjustment of status, applying for a "compelling circumstances" employment authorization document, or filing a non-frivolous petition to change employers, though attorneys note these become harder without a formal grace window.
9. What are advocates asking DHS to do instead?
Rather than eliminating the grace period, some advocates, including former White House advisor Ajay Jain Bhutoria, are urging DHS to expand it, proposing a 180-day grace period instead of scrapping the existing 60-day provision.
Sources & further readings
- Berardi Immigration Law. "DHS Moves to Eliminate the 60-Day H-1B Grace Period: What Employers and Workers Need to Know." August 2026. Read article
- Deccan Herald. "1 in 6 NRIs on H-1B Visa Under Sudden Threat of Deportation, Consider Returning to India: Survey." Deccan Herald, 2026. Read article
- Fragomen, Del Rey, Bernsen & Loewy LLP. "United States: DHS to Propose Elimination of 60-Day Nonimmigrant Grace Period." August 2026. Read article
- Higher Ed Dive. "DHS to Propose End of 60-Day Grace Period for H-1B Visa Holders." Higher Ed Dive, 2026. Read article
- India Weekly. "End of H-1B Grace Period? Proposed US Rule Could Force Laid-Off Indian Tech Workers to Leave Immediately." India Weekly, 2026. Read article
- Mondaq. "H-1B Workers Could Lose 60-Day Grace Period Under DHS Proposal." Mondaq, 2026. Read article
- Moneycontrol. "H-1B Shock for Indians: US Clears Plan to Scrap 60-Day Grace Period for Foreign Workers." Moneycontrol, 2026. Read article
- National Law Review. "60-Day Grace Period Under DHS Proposal May Be Lost by H-1B Worker." National Law Review, 2026. Read article
- Team Blind. "1 in 6 NRIs on H-1B Under Sudden Threat of Deportation, Pushing Nearly Half to Consider Returning to India." Team Blind Blog, August 2025. Read article
- The Business Standard. "H-1B Shock? US May End 60-Day Job-Loss Grace Period for Foreign Workers." Business Standard, August 31, 2026. Read article
- The Workers Rights. "H-1B Grace Period: Risks for Indian Workers." The Workers Rights, 2026. Read article
- Visas Update. "US DHS 60-Day Grace Period Elimination Proposal 2026: Key Impacts." Visas Update, August 28, 2026. Read article
