The Department of Homeland Security has sent a proposed rule to the White House for review that would eliminate the 60-day grace period H-1B workers currently get after losing a job.

The proposal landed at the Office of Information and Regulatory Affairs on Thursday, according to Bloomberg Law and the immigration firm Fragomen. It has not been finalized, and its exact language will only become public once it clears the Federal Register.

Right now, an H-1B worker who is laid off or fired gets up to 60 calendar days of authorized stay in the US to find a new sponsoring employer, switch to another visa category, or wind down their affairs before leaving. The grace period is technically discretionary, but US Citizenship and Immigration Services has granted it in nearly every case since it was introduced.

Losing that window would compress an already tight timeline. Visa holders often need weeks just to line up a new employer willing to sponsor an H-1B transfer, on top of paperwork that can take months to clear on its own. Without the grace period, a termination could mean packing up and leaving the country within days instead of months.

The proposal lands at a moment when H-1B enforcement has already tightened under the current administration. Outlets covering the Indian tech workforce, which holds a large share of H-1B visas issued each year, have flagged the change as one worth watching closely, since layoffs at US tech firms have not slowed down in 2026.

Nothing changes yet. The rule still needs to clear White House review and a public comment period before it can take effect, and immigration attorneys expect legal challenges if it does move forward.

For now, lawyers are advising clients on H-1B status to keep their documentation current and have a backup plan ready, given how quickly the rule could advance once it clears the White House review stage.