Proposed Rule Ends Grace Period for Foreign Workers Facing Job Loss
Washington, Saturday, 29 August 2026.
A White House-approved proposal to eliminate the 60-day grace period for unemployed foreign workers could force immediate departures, drastically reshaping talent retention for major technology firms.
Regulatory Review and Publication Timeline
The Department of Homeland Security proposal, identified by regulation number 1615-AD22, successfully cleared review at the Office of Information and Regulatory Affairs on Thursday, 27 August 2026 [1][2]. This administrative milestone signals that the plan is nearing public release, though it is not yet law [1]. The next procedural step requires publication in the Federal Register, which will initiate a public comment period typically lasting between 30 to 60 days [2][3]. Until the rule is finalized following this comment period, current regulations allowing the 60-day window remain in effect [2].
Impact on Workforce and Industry
Elimination of the grace period would fundamentally alter risk calculations for technology firms reliant on international talent, potentially forcing immediate deportations upon job termination [1][3]. Indian nationals, who accounted for 71% of all successful H-1B visa applicants in the 2024 fiscal year, face disproportionate exposure to these regulatory changes [4]. Former White House advisor Ajay Jain Bhutoria characterized the potential change as inhumane, noting that even the existing 60-day window is often insufficient for workers to wrap up lives and manage leases [4].
Broader Policy Context
This proposal aligns with a series of Trump administration measures aimed at reshaping the H-1B program, including a separate reported proposal for a $103,265 fee on certain new hires [1][3]. While the administration frames these actions as necessary for domestic labor protection, corporate leaders warn of operational risks and reduced talent mobility across key sectors [1]. The administration has not yet specified an exact date for the Federal Register publication, leaving stakeholders in a period of uncertainty [2][4].