US Reviews Proposal to End 60-Day Grace Period for Certain Foreign Workers

Mangalore Today News Network

Washington, August 9, 2026: The United States is reviewing a proposal that could eliminate the existing 60-day grace period available to certain foreign workers after their employment ends. The proposal is currently under review by the White House Office of Management and Budget (OMB) and has not yet been finalised as an official regulation.

If approved, the change could require affected workers and their dependants to leave the US soon after their employment ends, unless they secure another lawful immigration option. The current rule allows eligible workers to remain in the country for up to 60 consecutive days, or until their authorised stay expires, whichever comes first.

Major impact on Indian workers: The proposed change could have significant implications for the Indian expatriate community in the US. Indian nationals are the largest group of beneficiaries of the H-1B skilled-worker programme. According to US Citizenship and Immigration Services (USCIS), 71% of approved H-1B petitions in fiscal year 2024 were for individuals born in India.

More than 5.2 million people of Indian origin currently live in the US, according to recent estimates based on US Census data.

What is the 60-day rule?

Introduced in 2017, the rule was intended to give highly skilled foreign workers time to find new employment or explore other lawful immigration options after losing their jobs.

The provision applies to certain non-immigrant visa categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN, as well as their dependants.

The grace period allows eligible workers to seek a new employer, change visa status or pursue other lawful options without having to leave the country immediately.

If the proposal is finalised and adopted, affected workers could lose this flexibility and may no longer be able to change employers or adjust their immigration status from within the US after their employment ends, unless USCIS exercises its discretionary authority.

The proposed change would apply not only to H-1B visa holders but also to workers in the E-1, E-2, E-3, H-1B1, L-1, O-1 and TN categories.