As of September 10, 2026, DHS has released an advance copy of a proposed rule that would eliminate the discretionary grace period of up to 60 days currently available to certain nonimmigrant workers after their employment or qualifying activity ends.
If finalized, the proposal would apply to individuals in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status, as well as their dependent family members. The rule is scheduled for publication in the Federal Register on September 11, 2026, under DHS Docket No. USCIS-2026-0364. In the meantime, however, the proposal has not taken effect, and the current grace-period regulation remains in place.
The Current 60-Day Framework
Under 8 CFR 214.1(l)(2), DHS may consider eligible workers in the affected classifications, and their dependents, to have maintained status for up to 60 consecutive days after the cessation of qualifying employment or activity, or until the end of the authorized validity period, whichever is shorter. DHS may shorten or eliminate that period as a matter of discretion. The grace period does not itself authorize employment.
What DHS Is Proposing
DHS proposes to eliminate the current 60-day grace period. Under the proposed framework, an affected worker whose qualifying employment or activity ends would generally be expected to depart the United States unless another lawful basis to remain applies.
DHS describes the proposal as a return to the framework in place before January 2017. The agency states that the affected classifications are tied to specific qualifying employment or activities, that the grace period is not required by statute, and that determining whether it applies creates administrative complexity in benefit adjudications.
What Could Change?
If finalized, the proposal would reduce the transition time currently available after qualifying employment or activity ends. DHS acknowledges that some affected individuals could incur costs associated with departure, travel, relocation, lost income, or time spent outside the United States. The extent of any effect would depend on the circumstances of the individual case.
What Happens Next?
The proposal is scheduled for publication in the Federal Register on September 11, 2026, opening a 60-day public comment period. Importantly, the proposal does not change the current rules, and the existing 60-day grace period remains available while the proposed changes are considered. Any modification would require further action through the rulemaking process. For now, therefore, the current framework remains in place, and the ultimate outcome of the proposal has not yet been determined.
As the rulemaking process continues, the information in this article reflects the proposal and related developments available as of the date of publication and may change as the process moves forward. We will continue to monitor developments from DHS and USCIS. This article is provided for general informational purposes only and does not constitute legal advice.