The Department of Homeland Security proposes eliminating the 60-day discretionary grace period that let certain foreign workers—like H-1B holders—seeking new employment after job loss quickly find a new sponsor or depart the country.

The rule is not final and would take effect only after the formal regulatory process, public comments, and potential revisions.

If enacted, the change would extend to other visa categories (E-1, E-2, L-1, O-1, TN) as well as H-1B1 and E-3 visa holders.

Advocates emphasize documenting reliance interests with concrete impacts on employers and workers and note firms like Reddy Neumann Brown PC offer to help submit comments.

DHS argues that administrative burdens and the need to align statuses with end of employment outweigh the benefits to workers who lose status.

DHS notes the 3,795 annual figure is an upper-bound estimate and may not capture all workers who used the grace period due to reporting gaps.

Industry groups and firms like Erickson Immigration Group will monitor developments; workers should consult their employer or an EIG attorney for case-specific guidance.

Policy responses raise concerns about workforce flexibility and competitiveness, with the U.S. Chamber of Commerce urging careful consideration and lawyers warning of burdens on terminating employers.

Readers can access the unpublished Federal Register PDF for in-depth details.

Past challenges, such as an Obama-era fee ruling voided and later modified, are noted as context for potential legal pushback to any new rule.

DHS justification centers on statutory alignment of nonimmigrant status with employment end and reduced administrative burdens, while citing court decisions to back the shift.

Public comments are due by November 2026, with guidance to provide data-rich inputs on reliance and actual plans tied to the rule.