The single most important safety net for laid-off visa holders in the United States is now on the chopping block.
U.S. Citizenship and Immigration Services has sent a proposed rule to the White House Office of Management and Budget that would eliminate the discretionary 60-day grace period currently available to employment-based nonimmigrant workers whose jobs end. The proposal, identified as RIN 1615-AD22, was received for review on August 6, 2026, according to federal regulatory records.
What the grace period does today
Under a regulation created in 2016 and effective in early 2017, workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN status are not treated as having fallen out of status simply because their employment ended.
The cushion runs for the shorter of 60 days or the remaining validity on the worker’s I-94. Dependents in derivative status get the same protection.
In practice, that window is what allows a laid-off H-1B engineer to interview, receive an offer, and have a new employer file a transfer petition without leaving the country. It is also what keeps a spouse’s work authorization and a child’s school enrollment from collapsing the day a termination letter arrives.
What eliminating it would mean
If the grace period disappears, a worker whose employment ceases would generally stop maintaining status immediately.
The consequences cascade quickly. A person out of status is generally required to depart the United States and would be unable to change status or change employers from within the country, unless USCIS chooses to forgive the lapse as a matter of discretion. Immigration attorneys note that discretionary forgiveness is not a plan, because it is unpredictable and cannot be counted on when signing a lease or enrolling a child in school.
Time out of status also carries downstream risk. Accrued unlawful presence can trigger multi-year bars on returning, which is why the difference between a 60-day cushion and zero days is not a paperwork detail.
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Who is affected
The proposal reaches well beyond H-1B. E-2 investors and their employees, L-1 intracompany transferees, O-1 extraordinary-ability workers, TN professionals from Canada and Mexico, and every dependent family member attached to those categories fall within the same regulatory provision.
Tech and consulting workers face the most concentrated exposure, given the layoff volatility in those sectors. But the rule would apply the same way to a Canadian nurse on TN status or an Australian architect on E-3.
What this means for you
The rule is not in effect. It is under OMB review, has not been published, and would still require a public comment period before anything final. Nothing changes for anyone today.
Keep your I-94 and status documents current and accessible, and know your actual expiration date rather than assuming it matches your visa stamp.
Build a bench of employer options before you need one. Under a no-grace-period regime, speed of a new petition filing becomes everything.
Maintain a departure-ready financial cushion. Advisors increasingly recommend planning for a scenario where relocation is not optional.
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Talk to counsel before a termination becomes final, not after. Timing of the last day worked can matter.
This article is for general information only and is not legal advice.
What happens next
OMB review has no fixed deadline. If the rule clears review, DHS would publish a notice of proposed rulemaking, take comments, and then issue a final rule. That process typically takes months, and any final rule would almost certainly face litigation.
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