The grace period currently applies to workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN classifications, as well as their dependents. It was introduced to give these workers time to find new work or pursue other immigration options while remaining lawfully in the country. DHS originally created the grace period so "aliens who ceased work prior to the end of the petition's validity period could remain in the United States to pursue other immigration options" and to help employers manage work changes more easily. That reasoning appears in a 2016 Federal Register notice cited in this proposal.
But DHS now argues the grace period creates a disconnect between a worker's legal status and the work that forms the basis of that status. By statute, these nonimmigrant classifications are directly tied to specific work or activity. An E-2 investor must invest capital. An H-1B worker must work for the petitioning employer. An L-1 worker must perform intracompany duties. When that work ends, DHS contends, the legal basis for the visa ends too. The agency states that "an alien's lawful status in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, or TN nonimmigrant classification is directly connected to and contingent upon the alien conducting certain work activities or otherwise providing services in the United States that is generally tied to a petitioning employer."
Under current rules, DHS decides whether to shorten or eliminate the grace period when workers apply to extend their stay or change status after job loss. The agency says removing the grace period would "better align the regulations with the statutory provisions" and reduce administrative burden on USCIS. The document does not specify what that administrative burden consists of, only that the grace period requires DHS to make these decisions.
The proposed rule would require an alien to "depart from the United States immediately upon his or her failure to maintain the work or activity that was the basis for the nonimmigrant classification or status (unless otherwise authorized to lawfully remain in the United States). This language leaves open the question of what "otherwise authorized" means—whether a worker could, for instance, have a pending application for a different visa category or employment authorization document that would allow continued presence.
The eight affected classifications cover distinct worker categories. E-1 and E-2 visas are for treaty traders and investors. E-3 visas are for Australian specialty workers. H-1B and H-1B1 visas cover specialty workers and Chilean and Singaporean professionals. L-1 visas are for intracompany transferees. O-1 visas are for individuals with extraordinary ability. TN visas are for Canadian and Mexican professionals under NAFTA. The proposal does not address other nonimmigrant categories or permanent residents.
The document does not say whether workers could change employers during any shift to a new status, or what happens to dependents whose principal visa holder loses work. It also does not clarify whether the rule would apply retroactively to workers who have already lost work, or only to future job losses.
DHS acknowledges "reliance interests and potential impact of this rule" but does not elaborate on what those impacts might be. The agency notes that it "considered alternatives" to outright elimination but does not detail what those alternatives were or why it rejected them.
Comments on the proposed rule must be submitted by November 10, 2026, at midnight eastern time through the Federal eRulemaking Portal at regulations.gov. The docket number is USCIS-2026-0364. Comments must be in English or include an English translation, reference a specific portion of the proposed rule, explain the reason for any recommended change, and include supporting data or authority. DHS will not accept comments submitted by email, mail, hand delivery, courier, or on digital storage devices. The agency also will not accept mailed comments at this time. If you cannot submit through regulations.gov, you can contact the Regulatory Coordination Division, Office of Policy and Strategy, U.S. Citizenship and Immigration Services, at (240) 721-3000 for alternate instructions.
General information, not legal, immigration or tax advice. Confirm the details with Homeland Security Department before you act.
