U.S. Prepares to Eliminate H-1B 60-Day Grace Period: What Happens When White House Review Is Complete
The Core Signal
On August 27, 2026, the U.S. Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) concluded its review of a proposed rule by U.S. Citizenship and Immigration Services (USCIS).
The rule’s title is blunt:
“Eliminating the Discretionary 60-day Grace Period.”
This rule, proposed by the Department of Homeland Security (USCIS), has completed White House OIRA review. The conclusion on August 27 was:
“Consistent with Change.”
The current stage remains: Proposed Rule. It has not yet taken effect. ([reginfo.gov][1])
So the real question is not whether the U.S. is changing H-1B rules again. It is:
When the 60-day safety cushion is gone, how much time do foreign workers have to find a new employer, change status, or leave the United States after being laid off?
Layer 2: What the Current 60-Day Rule Protects
Under current U.S. regulations, holders of certain work-based nonimmigrant visas, including H-1B and L-1, may receive:
Up to 60 consecutive days, or the remainder of their approved stay period, whichever is shorter,
after their employment ends. During this time, they are not immediately considered out of status simply because they lost their job.
USCIS has previously explained that this period allows displaced workers to:
* Find a new U.S. employer;
* Have a new company file an H-1B petition;
* Change to another lawful status;
* Or make arrangements to depart the United States. ([USCIS][2])
In plain terms:
Being laid off does not mean your immigration status becomes invalid the next day.
The 60-day window is one of the most important safety cushions for foreign workers in the U.S.
The new rule’s title expresses a clear policy direction: this cushion is being dismantled.
Layer 3: An Important Boundary — This Has Not Happened Yet
It is crucial to state what has and has not happened.
The 60-day grace period has not been cancelled.
What happened on August 27 was:
The White House OIRA completed its review of the proposed rule.
The next steps typically include:
> DHS/USCIS publishes the proposed rule
> → Federal Register notice
> → Public comment period
> → Government review
> → Final rule
> → Effective date.
The regulatory system still clearly marks:
Stage: Proposed Rule. ([reginfo.gov][1])
So the most accurate description right now is:
> Preparing to eliminate / proposing to eliminate / moving to eliminate
Not:
> Has eliminated.
Layer 4: This Is Not a Standalone Change — the U.S. Is Restructuring the Entire H-1B System
More notably, the regulatory system shows two additional H-1B-related actions in progress.
On August 24, the U.S. government submitted:
“Reforming the H-1B Nonimmigrant Visa Classification Program”
to White House regulatory review.
This one is marked:
Economically Significant
meaning the U.S. government itself judges it may have major economic impact. ([reginfo.gov][3])
Additionally, a rule titled:
“Fee for Certain H-1B Petitions”
completed White House review on August 19 and was also marked:
Major / Economically Significant. ([reginfo.gov][4])
So the story is not just about one rule. The U.S. is simultaneously restructuring H-1B costs, eligibility, and the post-layoff identity safety net.
Layer 5: Why This Matters for North America
Canada has previously created a specific policy to attract H-1B holders from the U.S.
In 2023, Canada opened:
10,000 spots for an open work permit for H-1B holders
The spots filled rapidly after opening.
Canada.ca still clearly states the policy goal was:
> “keep highly skilled workers in North America”
People with a valid H-1B living in the U.S. could receive an open work permit for up to 3 years. ([Canada.ca][5])
Although this 10,000-person program is now closed, Canada still allows some people who received shorter-validity H-1B open work permits to:
Apply for extensions until December 15, 2026
to complete up to three years. ([Canada.ca][6])
So if the U.S. ultimately eliminates the 60-day buffer, the effect is not just:
> “H-1B is stricter in the U.S.”
It also creates a very real question:
Will these displaced technical workers again become targets for Canadian talent competition?
Layer 6: Practical Impact on All Visa Holders
This is not just about H-1B. The 60-day grace period applies to several nonimmigrant categories.
Under current regulations, the 60-day discretionary grace period is available to:
* H-1B, H-1B1, E-3 specialty occupation workers;
* L-1 intracompany transferees.
For each of these categories, the grace period is limited to 60 days or the remainder of the approved stay period, whichever is shorter. ([8 CFR 214.1(l)(2)])
If the final rule eliminates this buffer, the practical effect for all affected visa holders is:
The time to “find a new job” becomes the time to “maintain legal status.”
This is especially consequential for:
* Tech workers in sectors experiencing layoffs;
* Workers who have filed I-140 petitions but face long green card backlogs;
* Families whose spouses and children derive status from the primary applicant;
* People who have already bought homes, enrolled children in school, and cannot leave quickly.
This is not an abstract immigration rule. It changes how many people plan their entire lives after a layoff.
What Comes Next
The proposed rule has not been published in the Federal Register yet. The final text has not been released.
When it is, the critical details to watch are:
* Who is affected — will all work visa categories lose the grace period, or only some?
* When does it start — is there a transition period for people currently in the U.S.?
* Are there exceptions — for example, for workers with approved I-140s or pending adjustment of status?
* Does it affect the H-1B transfer filing window — can a new employer still file while the worker is out of status?
Until then, the current 60-day grace period remains in effect. ([8 CFR 214.1(l)(2)])
Data Sources
* OIRA Conclusion — Eliminating the Discretionary 60-day Grace Period (RIN: 1615-AD22): https://www.reginfo.gov/public/do/eoDetails?rrid=1496261
* OIRA Conclusion — Fee for Certain H-1B Petitions (RIN: 1615-AD20): https://www.reginfo.gov/public/do/eoDetails?rrid=1505911
* Pending Review — Reforming the H-1B Nonimmigrant Visa Classification Program (RIN: 1615-AD00): https://www.reginfo.gov/public/do/eoDetails?rrid=1505714
* USCIS on STEM H-1B visas (grace period explanation): https://www.uscis.gov/sites/default/files/document/foia/Science_Technology_Engineering_and_Mathematics_H-1B_visas-Representative_Eshoo.pdf
* Canada.ca — H-1B visa holder work permit: https://www.canada.ca/en/immigration-refugees-citizenship/services/work-canada/special-instructions/h1b.html
* Canada.ca — H-1B open work permit extensions: https://www.canada.ca/en/immigration-refugees-citizenship/services/work-canada/special-instructions/h1b/after/extensions.html
* 8 CFR 214.1(l)(2) — Current grace period regulation