US Proposal to End H-1B Grace Period Clears Review

Aug 29, 2026

82 min

Aug 29, 2026 12:30

US plan to scrap H-1B grace period clears key review

## Proposal Overview

The US government is moving forward with a proposal to eliminate the 60-day grace period for H-1B visa holders who lose their jobs. This grace period currently allows foreign workers, including many from India, to find new employment or adjust their immigration status after being laid off.

## Review Process

The proposal, titled "Eliminating the Discretionary 60-day Grace Period," was reviewed by the White House Office of Information and Regulatory Affairs. The review concluded on August 27, 2026, with the proposal marked as "Consistent with Change," indicating it passed with modifications. However, the proposal has not yet been published, and the existing grace period remains in effect.

## Implications for Workers

If implemented, the change could significantly impact Indian nationals, who make up a large portion of H-1B visa holders. The current rule allows a 60-day period for affected workers to secure new employment or prepare to leave the US. Critics argue that eliminating this period would leave many without sufficient time to manage personal and professional transitions.

## Opposition and Recommendations

Ajay Jain Bhutoria, a former member of the President’s Advisory Commission on Asian Americans, has criticized the proposal, calling it "inhumane and unworkable." He advocates for extending the grace period to 180 days, citing the lengthy recruitment and visa transfer processes in sectors like technology and healthcare.

## Next Steps

The proposal will be published in the Federal Register, followed by a public comment period. The Department of Homeland Security will then review the comments before issuing a final rule. The H-1B program is crucial for US companies hiring skilled foreign professionals, particularly in technology fields.

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