DHS Proposes Ending H-1B Layoff Grace Period, Forcing Departures After Job Loss

The Department of Homeland Security proposed a rule to eliminate the 60‑day grace period that has allowed H‑1B (and some related visa) workers to stay in the U.S. after layoffs, requiring laid-off workers to leave or seek a new sponsor via consular processing. DHS argues the change reduces administrative burdens and better aligns status with employment, though it could shift visa processing to the State Department and raise costs for employers. DHS estimates about 65,752 workers are affected annually (2021–2025), with only a small share finding new sponsorship within the window. A 60‑day public comment period will follow the proposal’s Federal Register publication.