The White House Office of Information and Regulatory Affairs completed its review of the Department of Homeland Security's proposed rule "Eliminating the Discretionary 60-day Grace Period" on 27 August 2026, according to the regulatory-review records published on reginfo.gov. The proposal, filed under RIN 1615-AD22, was sent to OIRA on 6 August and came back marked "Consistent with Change", the label used when an agency revises its draft during review. Clearance is the last step before a proposed rule can be printed in the Federal Register and opened for public comment. Nothing changes for visa holders yet: the 60-day grace period in 8 CFR 214.1(l)(2) remains fully in force. For workers in the United States on E, H-1B, H-1B1, L-1, O-1 and TN status, and their dependants, the wait to see what DHS actually proposes is now measured in days or weeks.
Background
The grace period comes from a DHS regulation finalised in late 2016 and in force since January 2017. When a worker in one of the covered categories loses their job before their authorised stay ends, the regulation treats them as maintaining status for up to 60 consecutive days, or until their I-94 expires if that comes first, once per authorised validity period. During that window they can find a new sponsor and have a transfer petition filed, change to another status, or arrange an orderly departure. On 6 August 2026 DHS sent a draft proposed rule to OIRA, the office inside the Office of Management and Budget that reviews significant regulations before publication (see /news/us-60-day-grace-period-elimination-proposal-2026).
What exactly changed
OIRA's public dataset of completed reviews now lists the rule as received on 6 August and completed on 27 August, decision "Consistent with Change". That designation means DHS edited the draft during the three-week review; it does not say what the edits were, and the text of the proposal is still not public. The record also shows the rule was not classified as economically significant. According to Fragomen's summary of the agency's own description, the proposal would end the automatic grace period for E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN nonimmigrants and their dependants, so that a worker whose employment ceases "would generally be required to depart the United States immediately, unless USCIS exercises its separate discretion to forgive the lapse in status". Whether DHS is proposing outright elimination, a shorter window, or new conditions will only be known when the Federal Register notice appears.
Where the rulemaking stands
- Current rule: up to 60 days of maintained status after job loss, once per petition validity period (8 CFR 214.1(l)(2), in force since January 2017). Still in force.
- Proposed rule: RIN 1615-AD22, sent to OIRA 6 August 2026, review completed 27 August 2026 ("Consistent with Change").
- Next: publication in the Federal Register as a proposed rule, followed by a public comment period, typically 30 or 60 days. Not on the Federal Register public-inspection list as of 29 August.
- Reference point: the H-1B cap-fee proposal (RIN 1615-AD20) cleared OIRA on 19 August and was published on 25 August, six days later.
- After comments: DHS must review them and issue a final rule with its own effective date, a process that normally takes months.
Who it affects
Every worker in the covered categories, plus the spouses and children whose status depends on theirs. An H-1B engineer caught in a layoff today has 60 days to secure a new employer and get a transfer petition on file; under the proposal as described, that engineer would have no automatic window and would depend on a discretionary USCIS decision to excuse the gap. An L-1 manager whose parent company closes its US office, a TN accountant from Canada or Mexico whose contract is not renewed, an O-1 researcher whose grant ends early and an E-2 employee of a treaty-country firm are all in the same position. Employers are affected too: the grace period is what lets a competitor hire a laid-off H-1B worker through a routine transfer. Permanent residents and people with adjustment-of-status applications pending are outside the scope of this rule.
What to do now
There is no deadline attached to anything and no reason to change status or leave the country. The useful step is preparation. Know your I-94 expiry date, keep copies of pay stubs and employment letters, and think through the first week after a job loss: which employers could file a transfer quickly, and whether a change to another status is realistic. When the proposed rule is published, anyone can file a comment, and comments from affected workers describing concrete harm form part of the record a court would later examine. Employers running restructurings this autumn should note that a final rule cannot take effect until after the comment period and DHS's review of the comments, so the 60-day window still applies to layoffs in the coming months. Our United States guide (/country-guides/united-states) explains the status categories involved.
When it takes effect
Not yet. OIRA review concluded 27 August 2026 (reginfo.gov). The proposal has not been published, no comment period has opened, and the 60-day grace period remains available to anyone who loses a job today.
What is not yet confirmed
The text of the proposal is unknown, including whether DHS proposes full elimination or a shorter or conditional window, and whether people already in the United States would get any transition period. The publication date and comment-period length are not announced. "Consistent with Change" confirms edits were made during review but not their substance.
Key Takeaway
The DHS proposal to remove the 60-day post-layoff grace period cleared White House review on 27 August 2026 and can be published at any time; nothing changes for H-1B, L-1, O-1, TN and E-visa holders until a final rule is issued months from now, but the details of what is proposed should be public within weeks.