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US considering end of grace period for foreign workers
The proposal is currently under review and includes H-1B visas

US considering end of grace period for foreign workers

Aug 09, 2026
09:54 am

What's the story

The United States is mulling over a proposal to end a 60-day grace period for certain foreign workers, including H-1B visa holders, after their employment ends. The proposal is currently being reviewed by the White House Office of Management and Budget (OMB). If implemented, it could require these workers and their dependents to leave the country almost immediately after losing their jobs.

Community impact

Significant implications for Indian expatriate community

The proposed rule change could have a major impact on the Indian expatriate community in the US.

According to US Citizenship and Immigration Services (USCIS), 71% of approved H-1B petitions in fiscal year 2024 were for beneficiaries born in India.

Recent estimates based on US Census data also reveal that there are over 5.2 million people of Indian origin living in the country.

Rule overview

Current 60-day rule explained

The current 60-day rule, which came into effect in 2017, offers flexibility to highly skilled foreign workers who lose their jobs.

It allows certain non-immigrant workers and their dependents to stay in the US for up to 60 consecutive days or until the end of their authorized stay period, whichever comes first.

The provision covers several visa categories including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN.

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Transition challenges

Proposed change could create challenges

If the proposed change is implemented, it would make job transitions more difficult for foreign workers.

They would not be able to switch employers or change their immigration status from inside the US unless USCIS intervenes.

This could put additional pressure on families, especially those with dependents who rely on H-1B workers in the US.

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