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India-US relations

US proposes ending 60-day grace period for H-1B workers who lose their jobs

10 Sept 2026 · 2 outlets · 1 min read

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In 30 seconds
  1. DHS proposed on 10 September 2026 to end the 60-day grace period for H-1B holders who lose their jobs.
  2. Workers would have to leave the US as soon as their job ends; the plan is open for 60 days of public comment.
  3. It came days after the US Labor Department halted Cognizant's new PERM filings and H-1B processing, Financial Express reported.

The US Department of Homeland Security (DHS) on 10 September 2026 proposed scrapping a 60-day grace period that lets H-1B and some other temporary work-visa holders stay in the US to find a new sponsor after losing a job. Under the plan, they would have to leave as soon as their job ends. The proposal is open for 60 days of public comment before DHS decides whether to finalise it. DHS said affected jobs could go to American workers instead.

What it means for India

Indians rely heavily on the H-1B 'specialty occupation' visa for US tech jobs. If the rule is finalised, an Indian worker laid off in the US would lose the time now allowed to find a new employer before having to leave.

Checked

Claim by claim

✓Verified

DHS has proposed eliminating the discretionary 60-day grace period for H-1B and certain other work-visa holders who lose their jobs.

Reuters and Financial Express both report the proposed rule, posted on 10 September 2026 for publication in the Federal Register.

Reuters · The Financial Express
✓Verified

The proposal would also apply to some temporary work-visa categories other than H-1B.

Reuters says it covers H-1B and certain other temporary work visas; Financial Express says it would reach well beyond the H-1B pool.

Reuters · The Financial Express
?Unverified

Jobs held by affected visa holders could go to American workers instead.

Said by US Department of Homeland Security

This is DHS's stated rationale and a prediction; our sources contain no data testing it.

Reuters
Honest gaps

Not yet known

  • ?Whether DHS finalises the rule after the comment period, and in what form.
Who reported this

Sources

Centre · 1International · 1

2 outlets across the spectrum. Leanings are a rough guide to who reported it, not a verdict on accuracy.

  1. ReutersTrump administration proposes waiving grace period for H-1B holders after job loss
  2. The Financial ExpressEnd of H-1B safety net? How Trump administration's new proposal could impact Indians

Spasht writes original summaries. Follow the links to read each outlet's own report. Revision 1.