The Current 60-Day Lifeline
Since 2017, US immigration regulations have provided a crucial safety net for high-skilled foreign workers who are laid off. This rule grants a discretionary grace period of up to 60 consecutive days for individuals on visas like the H-1B, L-1, and O-1.
For the large contingent of Indian tech professionals in the US, this 60-day window is more than just a number; it's a lifeline. It offers a fighting chance to find a new sponsoring employer, transfer their visa, and avoid the monumental disruption of uprooting their families and lives at a moment's notice. This period allows for H-1B portability, where a worker can begin a new job once a transfer petition is filed, rather than waiting for its approval. Without this buffer, navigating the complex and competitive US job market becomes a nearly impossible task.
A Drastic New Proposal Emerges
The “fresh look” at this policy has taken a sharp and unexpected turn. On September 11, 2026, the U.S. Department of Homeland Security (DHS) published a Notice of Proposed Rulemaking to completely eliminate this 60-day grace period. The proposal doesn't suggest reducing the timeframe; it recommends scrapping the provision entirely. The proposed rule applies not just to H-1B holders, but also to a range of other nonimmigrant work visas, including E-1, E-2, E-3, L-1, O-1, and TN, affecting a wide spectrum of foreign professionals and their dependent family members. This move represents a significant policy shift from the 2017 rule, which was specifically designed to enhance job flexibility and stability for high-skilled workers.
What Happens If This Rule Passes?
The implications of this proposal, if it becomes law, are severe. A laid-off professional would effectively be considered out of status the day after their employment ceases. This would remove the entire buffer currently used for job hunting, interviewing, and securing a new sponsored role. The pressure on H-1B portability would become immense; a new petition would likely need to be filed no later than the final day of employment to maintain status, a logistical nightmare for both employees and employers. The change would also directly impact families. Dependent visa holders, such as those on H-4 or L-2 visas, would simultaneously lose their legal status along with the primary worker, jeopardizing their ability to remain in the country and, for some, their authorization to work. In essence, a layoff could trigger an immediate requirement to depart the United States.
The Government’s Stated Rationale
The DHS has offered two primary reasons for this proposed change. First, the agency argues that it would restore a direct and strict relationship between a foreign national's visa status and their active employment, which it believes is more aligned with congressional intent. Second, DHS claims that eliminating the grace period would reduce the administrative burden on immigration officers, who currently have to assess whether the grace period applies in individual cases. However, critics and immigration attorneys have questioned these justifications, suggesting that the claims of reducing administrative complexity are misleading and that the move could instead shift burdens onto other parts of the immigration system, such as removal proceedings.
The Road Ahead: What Happens Now?
It is critical for all Indian professionals on work visas to understand that this proposal is not yet law. As of today, the 60-day grace period remains in effect. The proposal has entered a 60-day public comment period, which is set to close on November 10, 2026. During this window, individuals, companies, and advocacy groups can submit feedback on the proposed rule. After the comment period ends, DHS must review the submissions before it can issue a final rule. This process takes time, and legal experts predict that a final rule, if it moves forward, would likely not be published until sometime in 2027. The situation is evolving, but no immediate change to the current system has occurred.
