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State Department Moves to Overhaul J-1 Exchange Visitor Rules and Strip the Grace Period for Terminated Programs
For over 25 years, the regulations governing America’s J-1 Exchange Visitor Program have barely changed. It remained a relic of a paper-based era that predates SEVIS, the government’s electronic tracking system, by four years. That is now set to change.
On last July 30, 2026, the US Department of State published a Notice of Proposed Rulemaking that would rewrite how J-1 programs are terminated, and reinstated. The notice handed the department new discretionary power to end a participant’s status directly. It has also tightened the deadlines for corrections, and, notably, argued for doing away with a grace period. Exchange visitors have long relied on this period to wind down their affairs and leave the country in an orderly way. However, the proposed rule has placed the J-1 into a double jeopardy like never before.
Here, our EB-1A consultants have analysed this update in great detail, and commented on the nuances of the proposed policy. Let’s dive in.
A rule built for the paper era is now finally being rewritten
The J-1 program, which brings researchers, scholars, interns, trainees, camp counselors, au pairs and other cultural and educational exchange visitors to the United States, is governed by Subpart C of 22 CFR Part 62. That section was last substantively updated in 1999 by the former US Information Agency, in a rule the State Department itself now acknowledges “was developed for operation in a paper-based environment.” SEVIS, the web-based platform the Department of Homeland Security and State Department jointly use to track F, M, and J nonimmigrants, wasn’t launched until January 2003. In other words, the current regulatory text has never been fully reconciled with the electronic system sponsors actually use today.
The proposed rule, filed under RIN 1400-AF23, targets three specific regulatory provisions:
- termination of program participation (22 CFR 62.40),
- extension of program (22 CFR 62.43), and
- reinstatement to valid program status (22 CFR 62.45).
The Department is accepting public comments through September 28, 2026, via regulations.gov (Docket ID: DOS-2026-0859) or by email to JExchanges@state.gov. Notably, the State Department has historically treated Exchange Visitor Program rulemaking as exempt from standard notice-and-comment requirements under the Administrative Procedure Act, since it involves “a foreign affairs function of the United States”. However, the Department has stated that it is voluntarily soliciting comments on this proposal regardless.
New grounds for termination and new departmental power
Under current rules, sponsors must terminate a participant’s program for a defined set of reasons, including:
- Failing to pursue their approved activities,
- Being unable to continue the program,
- Violating sponsor rules, or
- Lacking required insurance coverage.
The proposed rule adds a new mandatory trigger: falsifying or failing to provide full and truthful information. In other words, now, if the applicant fails to provide the proper documents or information truthfully, whether during the original application or at any point during the ongoing exchange program, the latter could get terminated.
More significantly, the rule would for the first time give the State Department itself direct authority to terminate a participant’s program in three circumstances:
- When the Department or DHS has revoked or cancelled the exchange visitor’s visa with immediate effect,
- When the exchange visitor engages in unauthorized employment, or
- When they falsify information.
In the visa-revocation scenario, the consequences are immediate. In other words, the rule states the individual “must immediately leave the country or risk removal.”
The rule does build in a limited process for a participant to push back. Upon a finding of unauthorized employment or falsification, the Department must provide at least 30 days’ written notice of intent to terminate. In the aftermath, the exchange visitor then has 10 business days to submit a statement in opposition to the Deputy Assistant Secretary for Private Sector Exchange whose decision is final and not subject to further administrative appeal. Most importantly, the rule specifies that exchange visitors “may not appeal on the basis of hardship or other equitable considerations”. This means personal circumstances, however sympathetic, cannot be used to contest a termination decision on their own.
J-1 visitors whose programs are terminated do not receive the standard 30-day grace period normally available to those who complete their programs successfully. Their SEVIS records shift immediately to terminated status. Moreover, since a J-2 dependent’s status is tied to the principal J-1 holder, an accompanying spouse or child’s status is also affected in tandem. There is no equivalent winding-down window for the family to arrange their departure.
Tighter deadlines for extensions, no exceptions
The proposal also overhauls how program extensions work. Sponsors already have the authority to extend a participant’s program up to the maximum duration allowed for their specific exchange category without additional Department approval. However, the new rule would impose a hard three-month deadline: supporting documentation must reach the Department no later than three months before the desired extension period begins, and the rule is explicit that “there will be no exceptions for late submissions.”
The proposal also eliminates a special, separate extension pathway that has existed specifically for au pairs. The au pair sponsors would now need to submit extension requests 90 days ahead of the program end date, instead of the 30-day window under the current au pair-specific rule.
A simplified but less forgiving reinstatement system
Perhaps the most consequential operational shift involves how sponsors fix a SEVIS record that has drifted out of valid status. The current system sorts violations into three tiers:
- Minor or technical infractions,
- substantive violations, and
- non-reinstatable violations
Minor infractions are given up to 120 days to correct. The proposed rule scraps that tiered structure entirely, and replaces it with a single and simplified 30-day window. Now the sponsors must use a “Correct SEVIS Status” action to fix most errors within 30 days of the status change, with no application or fee required from the Department.
The Department will generally only consider reinstatement requests filed within five months of the status lapse. It is a sharp tightening from the current rule’s much more permissive 270-day consideration window. Requests are barred outright for participants who didn’t maintain their original program objective or let required insurance lapse.
What immigration lawyers are telling clients
Jeff Joseph, President of Immigration Strategy at Manifest Law and the 79th president of the American Immigration Lawyers Association, laid out the practical shape of the changes for stakeholders and urged early engagement with the rulemaking process. “For now, J-1 participants and sponsors are on notice as to what the intended rule is designed to achieve,” Joseph said. “Stakeholders who are impacted by the rule should make sure to submit comments before the deadline.”
Erickson Immigration Group described the proposal as “one of the most substantial updates to Exchange Visitor Program regulations in more than two decades,” noting that if finalized, it “would increase sponsors’ responsibilities for monitoring participant compliance while expanding the government’s authority to terminate J-1 participation based on visa revocations, unauthorized employment, and misrepresentation.”
Likewise, Berry Appleman & Leiden’s BAL Immigration News framed the Department’s own stated goals plainly: the changes are intended “to improve program integrity, data accuracy, participant oversight and national security while updating regulations that have not been significantly revised since 1999.”
What happens next
For now, none of these changes are in effect. The current J-1 participants and sponsors continue operating under the existing 1999-era rules unless and until the Department finalizes new regulations.
The Department has stated it will review all public feedback after the September 28, 2026 comment deadline closes and “publish a final rule as soon as possible” thereafter, though no firm timeline has been set. Interestingly, the Department estimates roughly 1,400 designated sponsors operate under the Exchange Visitor Program, and that more than 1,700 individual exchange visitor records were terminated in 2024 alone. Hence, the sheer scale of the population that would eventually be governed by these new procedures is substantial.
At GCEB1, our EB-1A experts are constantly staying updated on all the latest policy changes in the US immigration landscape. Stay tuned to us to get all the latest updates.
Frequently asked questions
1. Has this rule taken effect yet?
No. This is a Notice of Proposed Rulemaking published July 30, 2026. It is not yet in effect, and current J-1 participants and sponsors should continue following the existing 1999-era regulations unless the State Department issues new guidance or finalizes the rule.
2. What new authority would the State Department gain over J-1 terminations?
For the first time, the Department itself, not just sponsors, could directly terminate an exchange visitor’s program in cases involving an immediately effective visa revocation or cancellation, unauthorized employment, or falsified information or documentation.
3. Can a terminated J-1 participant appeal the decision?
Only in limited circumstances. Participants facing termination for unauthorized employment or falsification get 30 days’ written notice and 10 business days to submit a statement of opposition, but they explicitly cannot appeal on the basis of hardship or other equitable considerations, and the resulting decision is final.
4. Do terminated J-1 visitors get a grace period to leave the US, like those who complete their programs?
No. Unlike participants who successfully complete their program and receive a standard 30-day grace period, those whose programs are terminated do not receive that same winding-down window and generally must depart more abruptly.
5. How would the extension process change?
Extensions beyond a program category’s maximum duration would require supporting documentation to reach the Department at least three months before the extension period begins, with no exceptions permitted for late submissions: a stricter deadline than under current rules.
6. What happens to the special extension rule for au pairs?
It would be eliminated. Au pair extensions, currently governed by their own 30-day-advance-notice provision, would instead fall under the general extension rules, requiring submission 90 days before the program end date.
7. How would the reinstatement process for lapsed SEVIS records change?
The current three-tier violation system (minor, substantive, non-reinstatable) would be replaced by a single 30-day self-correction window using a “Correct SEVIS Status” action. Missing that window triggers a formal reinstatement process with a $367 fee, sponsor documentation, and a five-month filing deadline; down from the current 270-day window.
8. What happens to a J-2 dependent if the primary J-1 holder's status is terminated or lapses?
A J-2 spouse or dependent’s status generally mirrors that of the principal J-1 exchange visitor, so a termination or an uncorrected SEVIS status lapse affecting the J-1 holder will typically affect accompanying family members as well.
9. Can the public still weigh in on this rule?
Yes. The State Department is accepting public comments through September 28, 2026, via regulations.gov (Docket ID: DOS-2026-0859) or by email to JExchanges@state.gov with “RIN 1400-AF23” in the subject line. Immigration attorneys are encouraging affected sponsors and stakeholders to submit comments before that deadline.
Source: https://www.federalregister.gov/documents/2026/07/30/2026-15450/exchange-visitor-program-termination-of-program-participation-extension-of-program-and-reinstatement
