US Proposed H-1B Grace Period Policy Change
The Department of Homeland Security moved to eliminate the 60-day window for laid-off H-1B visa holders.
Updated on Oct. 7, 2026 in Remote Work
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Should the US government eliminate the 60-day grace period for laid-off H-1B visa holders?
On September 11, 2026, the US Department of Homeland Security proposed abolishing the 60-day H-1B grace period for workers who lose their employment. This move follows ongoing scrutiny of visa fraud practices in Texas.
Why it matters
The proposal aims to tighten oversight of visa programs, while the Texas Attorney General concurrently pursues investigations into firms allegedly using ghost offices to secure petitions. These combined actions have created significant uncertainty for international workers.
The Texas Attorney General is investigating 30 firms for suspected fraud, including one Dallas location associated with 500 approved petitions. New H-1B visa petitions currently require a $100,000 fee.
The players
US Department of Homeland Security
This federal agency is responsible for public security and the administration of immigration policies including the H-1B visa program.
Texas Attorney General
The state's top law enforcement official is currently leading civil investigative demands against nearly 30 North Texas firms for suspected visa fraud.
KBS Sidhu
A commentator who has publicly analyzed the impact of H-1B visa issues in Texas and called for governmental intervention.
The details
Federal authorities are investigating allegations of fictitious or ghost office operations designed to facilitate fraudulent visa petitions. The US Department of Labor recently conducted door-to-door checks on buildings in Dallas to verify employment claims associated with these petitions.
Timeline
August 13, 2026: US Department of Labor investigators conducted door-to-door checks.
September 11, 2026: DHS published the proposal to abolish the 60-day grace period.
October 6, 2026: KBS Sidhu published an article regarding Texas H-1B issues.
October 7, 2026: KBS Sidhu urged the Indian government to intervene.
November 10, 2026: The public comment window for the proposed policy closes.
Market Landscape
This policy proposal reflects a broader federal effort to increase scrutiny on high-skilled migration and corporate immigration compliance. It follows a tightening regulatory environment that shifts the burden of proof onto companies managing large H-1B workforces.
International workers face a significantly reduced window to secure new employment or finalize departure plans if the 60-day grace period is abolished. Businesses relying on H-1B labor may encounter increased scrutiny and higher compliance costs for new visa petitions.
The takeaway
The move to restrict grace periods signals a more precarious landscape for foreign nationals in the US tech and professional sectors. Workers should monitor the November 10 deadline closely and prepare for potential shifts in their legal residency status.
Further reading
For additional context on how employment policies impact international staff, read more in our Remote Work section.
Live Poll
Should the US government eliminate the 60-day grace period for laid-off H-1B visa holders?
