The U.S. Department of Homeland Security (DHS) has proposed eliminating a 60-day grace period that currently allows certain non-immigrant visa holders to remain in the country after losing their jobs. The draft proposal, published in the Federal Register on September 10, 2025, targets visa categories including H-1B, L-1, O-1, E-1, E-2, E-3, H-1B1, and TN visas, as well as their dependents.
Under the existing policy, introduced in 2016, these visa holders are granted up to 60 days to find new employment, change visa status, or prepare to leave the U.S. after job termination. The proposed rule argues that this grace period disconnects visa status from employment-based eligibility, stating that it "goes against the employment-linked nature of these immigration classifications."
Key details of the proposal:
- Immediate departure required: Visa holders would no longer have a grace period and would be required to leave the U.S. immediately upon job loss unless they secure new employment or another legal status.
- Affected visa categories: H-1B (skilled workers), L-1 (intra-company transfers), O-1 (extraordinary ability), and others.
- Rationale: DHS claims the current policy imposes administrative burdens and fails to align visa status with employment conditions.
- Potential impact: Thousands of jobs could go unfilled by specialty foreign workers if the rule is finalized, according to DHS estimates.
Policy shift reverses 2016 rule
The proposed change marks a reversal of a 2016 DHS policy that introduced the 60-day grace period. At the time, the agency stated that allowing workers time to find new employment benefited both foreign workers and U.S. employers. The new proposal acknowledges that scrapping the grace period would carry human and economic costs, including potential disruptions for employers reliant on foreign talent.
DHS Secretary Markwayne Mullin stated in the proposal that the grace period was not sufficiently considered in its original implementation, noting that it created additional administrative burdens for immigration officers. The rule argues that visa status should terminate immediately when employment ends, aligning with other non-immigrant visa categories where status is tied directly to specific conditions.
Reactions and implications
The proposal has drawn attention from both advocacy groups and industry stakeholders. Tech companies, particularly those in the U.S. that rely on H-1B visa holders—often from India and China—could face disruptions if the rule is enacted. Consulting firms like Deloitte, PwC, Ernst & Young, and Tata Consultancy Services are among those that frequently sponsor H-1B visas for skilled workers.
DHS has suggested that companies may instead hire equally qualified U.S. workers or go through the I-129 petition process to sponsor foreign workers. The agency also noted that affected workers could potentially reapply for visas if a new employer petitions for them.
Administrative and legal considerations
The proposal is part of a broader effort by the Trump administration to limit legal migration, including higher visa fees for skilled workers and pauses in immigrant visa appointments at U.S. missions worldwide. The rule is expected to undergo a public comment period before potential finalization.
DHS has stated that eliminating the grace period would reduce administrative burdens, as determining eligibility for the grace period has been described as "time-consuming and complex" for immigration officials. The agency also argues that the change would promote program integrity by ensuring visa status aligns strictly with employment conditions.
Background on visa categories
- H-1B visas: Established by Congress in 1990, these visas allow U.S. employers to sponsor skilled workers with at least a bachelor’s degree. They are critical for tech companies facing shortages of qualified U.S. workers.
- L-1 visas: Used for intra-company transfers, allowing multinational companies to move employees to U.S. offices.
- O-1 visas: Granted to individuals with extraordinary ability in sciences, arts, education, business, or athletics.
- TN visas: Available to Canadian and Mexican citizens under the USMCA (formerly NAFTA) for certain professional occupations.
The proposed rule would apply to these and other non-immigrant visa categories, fundamentally altering the post-employment options for thousands of foreign workers in the U.S.