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H-1B Workers May Lose Their 60-Day Safety Net: What the New DHS Proposal Means for Indian Professionals
For around a decade, the 60-day grace period has quietly functioned as one of the most important safety valves in America's high-skilled immigration system. It is a modest cushion that gives H-1B workers time to find a new job or switch visa status. If nothing else, it is a great window to wind down their lives in the US after a layoff. That cushion may now be about to disappear.
On August 6, 2026, the Department of Homeland Security sent 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. This is the standard first step before any federal regulation is published for public comment. The rule, if finalized, would strip away the grace period that has allowed laid-off workers on H-1B, H-1B1, L-1, O-1, E-1, E-2, E-3 and TN visas, along with their dependents, to remain lawfully in the United States for up to 60 days after their job ends.
The contents of the proposal are not yet public, and the regulation is still under executive review. But the mere fact that DHS is pursuing this change has sent a jolt of anxiety through immigrant communities. And, no group would feel the impact of this policy more acutely than Indian professionals.
As always, our EB-1A consultants have discussed this proposed policy in great detail and highlighted what could be the possible consequences of it.
What the grace period usually does and why 2017 mattered
The 60-day grace period was created by DHS in January 2017, near the end of the Obama administration, as part of a broader package of reforms for high-skilled workers. Before that date, there was no formal cushion at all: the moment a foreign worker’s job ended, their legal status could technically end with it. This urgency would force an immediate scramble to leave the country or resolve their status.
Under the rule as it exists today, eligible nonimmigrant workers whose employment ceases before their authorized stay expires can remain in the US for whichever is shorter: 60 consecutive days, or the remainder of their authorized stay as reflected on their Form I-94.
The grace period is available once per authorized petition validity period. It applies whether the job loss is voluntary or involuntary, and gives workers three practical paths:
- Find a new employer willing to file a fresh H-1B petition,
- Apply to change to another non-immigrant status, or
- Prepare to depart the US in an orderly way
Notably, DHS has always retained discretion to shorten or deny the grace period, but as immigration specialists are nowadays pointing out, it has rarely exercised that power.
Why Indian professionals are the most vulnerable group
Indian nationals comprised roughly 71 percent of all approved H-1B beneficiaries in fiscal year 2024, according to data cited by immigration analysts. This is so among the roughly 65,000 new H-1B visas that are issued each year under the regular cap, with another 20,000 reserved for advanced-degree holders.
Indian professionals take up the overwhelming majority of these slots. That concentration means any tightening of grace-period rules functions almost like a policy aimed squarely at Indian nationals, even though it is nominally nationality-neutral. Losing a job today, however disruptive, still leaves two months of breathing room. Losing a job under a rule with no grace period could mean falling out of status the same day and with no built-in window to find a new sponsor. This would pose an insurmountable obstacle in the path of adjusting status, or even arranging logistics like selling a car, or pulling children out of school.
What immigration experts and advocates are saying
The reaction from immigration attorneys has been scathing in this changed circumstances. Ana Gabriela Urizar, an attorney with the immigration firm Manifest Law, described the grace period as a lifeline tied directly to the realities of settled life in America. She said the 60-day window gives H-1B workers “a critical window to find a new employer and continue the lives they have built in the United States.” Without that cushion, she warned, “an unexpected layoff would not simply mean losing a job, it could immediately put a family’s ability to remain in the United States into question.”
Ajay Jain Bhutoria, a former White House advisor on Indian-American affairs, was equally blunt, calling the proposal “a severe regression that directly harms legal immigrants who have contributed significantly to the United States’ technological and economic leadership.” He argued that hundreds of thousands of South Asian professionals in tech, healthcare and engineering hold H-1B status, and that removing the grace period would trigger “extreme psychological distress, financial ruin, and school disruptions” for families with US-raised children. He also noted the change would ripple back onto American employers themselves, since the grace period currently gives workers room to give proper notice to a current employer while a new H-1B filing is processed.
What happens next?
For the time being, the policy has not materialized and instead, remained at the level of proposal. The rule remains under OMB/OIRA review, a process that can take weeks or months with no fixed deadline. If it clears that review, DHS must publish it in the Federal Register and open a public comment period. Some reports suggest the change could take effect as early as mid-September 2026 if the process moves quickly, though nothing has been confirmed yet. Existing H-1B holders continue to be covered by the current 60-day grace period unless and until the new rule is formally adopted.
As the H-1B visa is exposed to a flurry of attacks from several policies, we encourage industry professionals to explore more secure and stable immigration pathways like the EB-1A green card, or O-1 visa. That way you won’t have to rely on the volatility of the H-1B or the unpredictable policy trends. We wish you a safe and stress-free immigration journey ahead.
Frequently asked questions
1. Has the 60-day H-1B grace period actually been eliminated yet?
No. As of now, the proposal is only under review at the White House’s Office of Information and Regulatory Affairs (OIRA). It has not been published in the Federal Register, has not gone through public comment, and has not been finalized. Current H-1B holders still have the existing 60-day protection.
2. Which visa categories does the proposed rule affect?
The rule targets the discretionary grace period available to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN nonimmigrant categories, along with their dependents.
3. Why would this hit Indian professionals harder than other nationalities?
Indian nationals accounted for about 71 percent of approved H-1B beneficiaries in fiscal year 2024; far more than any other country. Because Indian workers make up such a large share of the H-1B pool, a nationality-neutral rule change still lands disproportionately on them.
4. What could an affected worker do if they lose their job and there's no grace period?
Without the grace period, a worker’s ability to fall out of status could become immediate. USCIS has indicated that recently unemployed workers may still, depending on circumstances, seek to change to another nonimmigrant status or pursue other immigration relief; but attorneys note the practical room to use such options would shrink considerably without the built-in time cushion.
5. When did the 60-day grace period start, and why?
DHS introduced it in January 2017 to address a long-standing gap: previously, a worker’s legal status could effectively end the moment their job did, with no formal transition period. The rule gave laid-off workers time to find new sponsorship, change status, or leave in an orderly way.
6. Does DHS already have power to shorten or deny the grace period?
Yes; that discretion has existed since 2017, but according to immigration law sources, DHS has rarely used it. The new proposal would go further by eliminating the grace period as a standard offering altogether, reverting to pre-2017 practice.
7. What has India's IT industry body Nasscom said about the broader wave of H-1B changes?
While Nasscom’s most detailed public statements this year have focused on the separate H-1B wage-weighted selection proposal and the $100,000 fee, it has consistently flagged that Indian IT professionals and India-linked companies face disproportionate impact from H-1B policy shifts, warning of disrupted business continuity, higher costs, and workforce planning uncertainty for firms tied to client delivery schedules.
8. Are there reports of workers already facing enforcement action during their grace period?
Yes. Some laid-off H-1B holders have reportedly received Notices to Appear; the first step in deportation proceedings, while still technically within their current 60-day grace period, a practice immigration lawyers describe as inconsistent with existing USCIS policy and a sign of rising enforcement pressure even under current rules.
9. What should H-1B holders do while the rule is pending?
Immigration attorneys generally recommend staying informed as the rule moves through federal review, keeping documentation and financial affairs in order, discussing contingency plans with an immigration attorney, and not assuming the current 60-day cushion will remain available indefinitely, since the regulation could be finalized with limited advance notice once it clears OIRA review.
This is a developing regulatory story. The proposed rule’s exact text is not yet public, and its final scope, effective date, and any transition provisions will only become clear once DHS publishes it in the Federal Register.
Sources & further readings
- Economic Times. “US Moves to Scrap 60-Day H-1B Grace Period: What It Could Mean for Indians.” The Economic Times, August 10, 2026. Read article
- Economic Times. “US May End H-1B Job-Loss Grace Period for Foreign Workers; Indians Could Face Impact.” The Economic Times, August 8, 2026. Read article
- Fragomen. “DHS to Propose Elimination of 60-Day Nonimmigrant Grace Period.” Fragomen, August 7, 2026.
- Times of India. “From H-1B to H-1Bye-bye: Trump Targets 60-Day Grace Period for Laid Off Foreign Workers.” The Times of India, August 8, 2026. Read article
- Times of India. “Under US Government’s New Proposed Rule, H-1B Visa Workers Would Be Required to Leave US Immediately and Cannot Change Their Status or Employers Unless USCIS…” The Times of India, August 8, 2026. Read article
- U.S. Citizenship and Immigration Services. “Options for Nonimmigrant Workers Following Termination of Employment.” USCIS, January 24, 2025. Read alert
- U.S. Citizenship and Immigration Services. “Letter to the Honorable Anna G. Eshoo Regarding Technology-Sector Layoffs and the 60-Day Grace Period.” USCIS, May 15, 2023. Read document
- U.S. Citizenship and Immigration Services. “Letter Regarding Technology Sector Layoffs and the 60-Day Grace Period for Certain Employment-Based Nonimmigrant Workers.” USCIS, January 25, 2023. Read document
