United States: DHS to Propose Elimination of 60-Day Nonimmigrant Grace Period
August 7, 2026
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At a glance
- A proposed rule now under review at the Office of Management and Budget would seek to eliminate the 60-day grace period accorded to certain nonimmigrants whose employment ceases.
- When the proposal clears federal review, it will be published for a public comment period of 30 to 60 days. The regulation will not take effect until it is finalized, which typically takes several months.
The issue
The federal Office of Management and Budget (OMB) is currently reviewing a proposed regulation that, if finalized, would eliminate the 60-day grace period accorded to certain principal nonimmigrants and their dependents if the principal’s employment ceases before their period of stay expires.
Once the proposal clears OMB review, it will be published in the Federal Register for comments from the public.
Details of the proposal will not be known with specificity until publication. If the 60-day grace period is eliminated, foreign nationals whose employment ceases prematurely (and their dependents) would no longer be maintaining status and would generally be required to depart the United States immediately and would be unable to change status or change employers within the United States, unless USCIS exercises its discretion to forgive the lapse in status.
Background
The 60-day grace period was created by regulation in 2016 and took effect in early 2017. Under the rule, E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN nonimmigrants and their dependents are not considered to have failed to maintain nonimmigrant status solely because the principal’s employment ceased. The grace period lasts for the shorter of 60 days or until the principal’s I-94 expiration date. It is available once during each authorized petition validity period. DHS has the discretion to refuse or shorten the grace period but rarely did so until recent months, with grace period refusals becoming more common.
The grace period was instituted to mitigate the negative immigration consequences of employment loss. It allows affected individuals to seek other employment in the same nonimmigrant category or change status without the need to depart the United States, or to prepare for departure. The grace period applies whether the employment cessation is voluntary or involuntary.
What’s next for the proposal
When the proposal to eliminate the grace period clears federal review – which could take several months or more – it will be published for a public comment period of 30 to 60 days. The regulation would not take effect until the rule is finalized, which typically takes several months.
Once the proposal is published, feedback from employers will be important to inform the government of the impact of the proposal on the business community. If your organization wishes to comment, Fragomen’s Government Strategies Group can assist.
This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.
