kritika 
The US Department of Homeland Security (DHS) is proposing to get rid of the H-1B grace period, which at present allows visa holders to remain in the United States legally following the expiration of their employment. For Indian professionals (71% of all H-1B approvals), that could mean a potential jeopardy of immigration status the day after they are terminated. So, here’s a complete picture of the potential consequences.
Quick Facts
| What | Detail |
| Current rule | Employers are required to give H-1B workers 60 days after they are terminated to find a new sponsor or switch their status. |
| What’s proposed | DHS would like to get rid of this 60-day H-1B grace period altogether |
| Who’s most affected | To the extent that the data has been disclosed, 71% of the H-1B cases approved in FY2024 have been filed by Indian nationals. |
| Current status | Under review (not yet in law). |
| Advocate position | Experts have argued for a longer time, up to 180 days, rather than a shorter one. |
What is the H-1B Grace Period?
The H-1B grace period refers to a provision in the regulations that allows foreign workers with H-1B visas to take some time after their visas expire to find a new employer to sponsor them, change their immigration status or complete their affairs before leaving the United States.
If the H-1B worker did not have this buffer, he or she would lose legal status the day after his or her employment ended. A severe issue in a nation where hiring cycles frequently last for several months.
Why This Proposal Matters More for Indians
H-1B is a program that is powered by Indian tech workers. Indian nationals were granted 71% of all H-1B petitions for FY 2024 — a significantly higher percentage than any other nation, and indicative of decades of Indian talent being brought into the United States for technology, healthcare, and engineering roles.
Any change in the H-1B visa policy in 2026 will impact Indian immigrants in the USA disproportionately. In this community, the H-1B 60-day grace period is not a luxury, but rather the only window of opportunity between a layoff notice and a legal challenge.
What Happens After H-1B Job Loss Right Now?
According to the current H-1B grace period regulations, if an employee is terminated, he or she will have 60 days to:
- Find a new employer and submit a new H-1B transfer petition
- Seek immigration status change (such as an O-1 change or get started on the EB green card process)
- Utilise any leftover approved stay time.
- If none of the above applies, get ready to go out of the country.
It is because of the fact that immigration processes take time. Paperwork, collecting employer documents, waiting for government processing – that doesn’t occur overnight.
What Changes If the 60-Day Rule Ends?
If DHS is pursuing its plans to end the H-1B visa grace period, it will have several ripple effects:
For Workers
H-1B workers would be terminated as soon as the employment ends. A delay in finding a new sponsor, even for a day, could result in unlawful presence, which could affect future visa applications and permanent residency status.
For Indian Families
There are equally a lot of Indian professionals with complicated family circumstances, which include spouses on H-4 visas, kids in US schools, and pending green card applications that have been in the works for years. The loss of the grace period may lead to an impact on all these at one time — financial hardship, school changes, and psychological strain.
For Employers
The switch could have a downside for U.S. companies, too. Legalists have pointed out that new immigration plans could begin to be “hidden” from the workforce by professionals while they are in the process of arranging new immigration programs before leaving an employer, thereby decreasing workforce transparency and making it more challenging for business planning.
The Case for Keeping (or Extending) the Grace Period
But the extension of the grace period isn’t necessarily what immigration advocates and policy experts think is happening, because they believe the grace period should be extended instead of eliminated, and that it should be expanded from 60 days to 180 days.
Their reasoning is simple. For highly skilled industries, the hiring process often requires several rounds of interviews, background checks, approvals and visa transfer applications. Sixty days is already “seven days” short. The 180-day period would better reflect the actual employment process in the United States, and allow skilled workers to continue to benefit the American economy while obtaining employment.
This is not a marginal issue: It is said that the Biden administration endorsed this at the White House level.
Comparison: 60-Day Grace Period vs. No Grace Period
| Scenario | A period of grace of 60 days. | No Grace Period (Proposed) |
| Time to find new employer | Up to 60 days | Zero days |
| H-1B Transfer due to Layoff | Possible within window | Immediate out-of-status risk |
| Areas of family visa stability (H-4) | Maintained during window | Disrupted immediately |
| Employer change flexibility | Feasible | Severely limited |
| Unlawful presence is a risk factor. | Low (if acted within 60 days) | High |
| Impact on Indian workers | Manageable | Severe |
What Are H-1B Workers’ Options If the Grace Period Is Remove
Without the H-1B grace period, employees would have to make much more extensive planning:
- Bargain for notice periods — considerably more notice can be advantageous, considering that formal termination is coming.
- If there is any advance notice of a layoff, start H-1B transfers in advance of termination.
- Investigate H-1B alternatives following the loss of a job, such as O-1 or EB-1 visa or self-petition green card options.
- Contact an immigration lawyer as soon as possible — the odds of a mistake would become virtually impossible to avoid.
- Think about leaving the country — if you don’t have a legal way to leave, an orderly departure would be a lot better than gaining unlawful presence.
None of these would be perfect substitutes for the existing framework that provides some structure for employees to act.
What’s the Status of the Proposal?
As of August 2026 the DHS proposal is not in policy. The proposal is under review and it has not yet been released into the Federal Register.
That’s important because it provides a way for employers, advocacy groups, immigration attorneys and affected workers to respond to the public comment process. Immigration advisors have pleaded for people to come into that process once the proposal is officially submitted.
FAQs
Q: Has the H-1B grace period already been revoked?
No. The H-1B grace period will still remain until August 2026, while the proposal to revoke it is yet being considered.
Q: What is the duration of the current H-1B grace period?
Under the 60-day grace period for H-1Bs, the individual gets a 60-day period to stay legally in the US post their job.
Q: Can an H-1B visa be transferred after termination of employment?
Yes – currently, H-1B visas can be transferred in the 60-day window after termination. However, removal of this window makes such a transfer considerably harder to perform.
Q: What are H-1B visa alternatives?
Alternatives include transfer to O-1 visa, EB-1 self-petition, L-1 visa (where appropriate) and return to one’s homeland with application for H-1B visa.
Q: Have there been any requests for extension of grace period?
Yes. Certain advocates of the policy believe that this period should be increased to 180 days.
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