On September 11, 2026, the Department of Homeland Security published a notice of proposed rulemaking, Federal Register document 2026-18631, that would eliminate the discretionary 60-day grace period currently available to H-1B and other employment-based nonimmigrants and their dependents upon cessation of employment. The grace period, established in 2016 and codified at 8 CFR 214.1(l)(2), currently allows affected workers and their families to remain in the United States for up to 60 days after job loss to seek new sponsorship, change status, or depart without immediately falling out of lawful status [1, 2]. The proposed rule would require these nonimmigrants and their dependents to depart immediately unless separately authorized to remain, potentially forcing H-4 dependent children to withdraw from school mid-year with no transition buffer. The rule is not yet final; the public comment period closes November 10, 2026, according to the Federal Register notice [1].
Current grace period and proposed change
The 60-day grace period was established by DHS in 2016 through a final rule to enhance job portability and flexibility for high-skilled workers, the agency stated at the time [3]. Before that rule, no grace period existed. The current proposal would restore the pre-2016 policy, and DHS argues the grace period disconnects lawful status from the statutory basis of the visa classification [1]. During the grace period, workers may apply to change nonimmigrant status, adjust status, or file for a compelling circumstances Employment Authorization Document [4]. USCIS policy guidance on compelling circumstances EADs provides an illustrative example in which a principal applicant with extended U.S. residence, an approved immigrant visa petition, school-aged children, and a mortgage could be found to face compelling circumstances if job loss would require the family to sell their home at a loss, pull their children out of school, and relocate to their home country [7, 10]. Under the proposed rule, the grace period during which such applications could be filed would be eliminated [1].
DHS's analysis also acknowledges that dependents of affected workers would be impacted and that some individuals may be issued Notices to Appear, incurring costs estimated at $204 to $300 per person for attending immigration hearings [1]. The analysis does not separately quantify impacts on dependent children's education or school continuity [1].
Comparison with pre-2016 policy and other visa categories
Before the 2016 final rule, there was no grace period for terminated nonimmigrant workers, according to DHS's rulemaking history [3]. The 2016 rule created the grace period, and the current proposal would eliminate it and restore the earlier policy [1]. Other visa categories already have varying grace periods under existing regulations. Under DHS's SEVIS framework, F-1 students whose records are terminated as an Authorized Early Withdrawal receive a 15-day grace period to depart, while M-1 students receive no grace period and must depart immediately, DHS's Study in the States guidance states [6, 8, 9]. For terminations based on a status violation, no grace period exists in either category [8].
Evidence and analysis
The 2016 rule that established the grace period was premised on the finding that it would enhance job portability, stability, and flexibility for high-skilled nonimmigrant workers and help U.S. employers facilitate changes in employment, according to the Federal Register notice outlining that rule [3]. In the current proposed rule, DHS argues that this rationale is no longer sufficient and that the grace period disconnects lawful status from the statutory basis of the visa [1]. DHS's own qualitative regulatory impact assessment recognizes that dependents of affected principal nonimmigrants would be impacted by the elimination of the grace period, but it does not separately quantify the effects on dependent children's education or school continuity [1]. ICE guidance confirms that H-4 children may attend elementary and secondary school under derivative status without a separate student visa, and their lawful presence is contingent on the principal worker maintaining valid status [11]. Because the proposed rule would require the entire family to depart immediately upon the principal's job loss unless separately authorized to remain, the elimination of the 60-day grace period would remove the transition period during which a family could arrange school transfers or other continuity measures before leaving the United States. The analysis estimates some individuals may also be issued Notices to Appear, initiating removal proceedings [1].