H-1B 60-Day Grace Period Ending? What the US Proposals Mean

Published 2026-11-05 · 8 min read · By the Travlys visa team

Three US proposals that worry Indian students and H-1B workers are open for comment until 9 to 13 November 2026. None of them is law yet; here is what each would change and what to do now.

The H-1B 60-day grace period has not ended. On 11 September 2026 the US Department of Homeland Security (DHS) only proposed removing it, and the same is true of the USD 70,000 OPT fee proposed on 8 October and the plan to end deference on H-1B and L-1 extensions proposed on 14 October. All three are open for public comment until 9 to 13 November 2026, and today's rules apply until a final rule is published and takes effect.

At a glance: Grace period proposal: published 11 Sep 2026, docket USCIS-2026-0364, comments close 10 Nov 2026. OPT fee proposal: published 8 Oct 2026, docket ICEB-2026-0100, USD 70,000 for a first OPT and USD 30,000 for later OPT, paid by the school, comments close 9 Nov 2026. Deference proposal: published 14 Oct 2026, docket USCIS-2026-0529, comments close 13 Nov 2026. Legal status: none of the three is law yet. USD 100,000 H-1B fee: vacated by a Massachusetts federal court on 8 Jun 2026 and not being collected. D/S rule for F-1 students: final rule published 17 Jul 2026 but blocked by a court on 14 Sep 2026.

Is the H-1B 60-day grace period ending?

Not yet. The grace period still exists today under 8 CFR 214.1(l)(2), and DHS has only proposed removing it. If DHS publishes a final rule after reading the comments, the change would apply from the date that rule takes effect, not before.

What the grace period is today

Since January 2017, a worker in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 or TN status whose job ends early can stay up to 60 days, or until the I-94 end date if that comes sooner. In that window you can find a new employer who files for you, file to change to another status, or prepare to leave. It can be used once per authorised validity period. Dependants, such as H-4 spouses and children, rely on it too.

What the proposal would change

The proposal, titled Eliminating the Discretionary 60-Day Grace Period (91 FR 57807), would delete that provision. DHS says it would restore its older, long-standing policy. In practice, your status would end when your job ends, unless a new petition or a change of status is already filed. Your H-4 family would be affected in the same way. Some immigration lawyers say it is not yet clear how moving to a new H-1B employer would work in practice without any gap.

The USD 70,000 OPT fee proposal

Published on 8 October 2026 (91 FR 64566, docket ICEB-2026-0100), this proposal would charge a fee each time an F-1 student is recommended for Optional Practical Training (OPT). The amounts are USD 70,000 for a student's first OPT and USD 30,000 for any later OPT.

• Who pays: the SEVP-certified school, not the student directly. The proposal says schools may fund it through contributions from outside parties such as employers.
• When: the full amount must be paid before the school issues the OPT recommendation.
• First OPT: USD 70,000, whether it is pre-completion or post-completion OPT.
• Later OPT: USD 30,000. The DHS analysis treats a STEM OPT extension as a later OPT.
• Example: a student who does pre-completion OPT and then post-completion OPT would cost the school USD 100,000 in total.
• Not settled: whether schools would absorb the fee, pass it on, or recommend fewer students for OPT. The proposal does not decide this.
• Deadline: comments must be received by 9 November 2026.

Ending deference on H-1B and L-1 extensions

The third proposal, published on 14 October 2026 (91 FR 65119, docket USCIS-2026-0529), would remove 8 CFR 214.1(c)(5). Today that rule says USCIS generally defers to an earlier approval when the same employer files an extension on the same facts. It covers all Form I-129 extensions, including H-1B, L-1, O-1 and TN, so it is wider than H-1B and L-1.

If it becomes final, an officer could review your extension almost like a fresh case. That can mean more Requests for Evidence (RFEs) and slower decisions, even when nothing about your job has changed. Comments close on 13 November 2026.

What is already decided, and what is blocked

USD 100,000 H-1B fee: blocked in court

The USD 100,000 payment from the September 2025 proclamation was vacated by the US District Court for the District of Massachusetts on 8 June 2026, in a case brought by 20 states. On 24 July 2026 the First Circuit Court of Appeals refused to put it back in force while the appeal continues. According to law firm Ogletree Deakins, it is not being collected, a California federal court separately blocked it on 30 September 2026, and USCIS has said it intends to collect it if the court orders are lifted. Separately, a presidential proclamation of 18 September 2026, published in the Federal Register on 23 September, extended the payment requirement until 21 September 2027; whether USCIS can collect it still depends on the court orders. The appeal is still pending, so this can change.

D/S rule for F-1 students: published, then paused

DHS did publish a final rule on 17 July 2026 (91 FR 44976) to replace duration of status (D/S) with a fixed admission end date for F, J and I visa holders, due to start on 15 September 2026. On 14 September 2026 a federal judge in Massachusetts granted a nationwide preliminary injunction, so the rule has not taken effect. Students continue under the D/S system for now, but the case is ongoing.

EAD automatic extensions: final

One related change is final. A DHS rule effective 14 October 2026 confirmed the end of automatic extensions for certain work permits (EADs) while a renewal is pending. If you or your spouse hold an EAD, check your category and file renewals as early as the rules allow.

Proposals are not law: how the process works

• Proposed rule: published in the Federal Register with a comment window. Nothing changes yet.
• Comments: DHS must consider the comments and respond to significant points in any final rule.
• Final rule: DHS can finalise, change or drop the proposal. A final rule states its own effective date.
• Courts: final rules can be challenged, as the D/S rule and the USD 100,000 fee show.

There is no fixed timeline. A final rule could come within months, or much later. Be careful with social media posts that say a rule starts next week without pointing to a Federal Register notice.

What students planning Fall 2027 should do now

• Do not cancel plans over a proposal. Current OPT rules still apply.
• Ask each shortlisted university in writing how it would handle the OPT fee if it becomes final: absorb it, recover it from employers or students, or limit recommendations.
• Build two budgets: one with OPT income as it works today, one where OPT is harder to get. Check that you could still repay an education loan.
• Look at timing: a two-year master's starting in Fall 2027 reaches post-completion OPT around mid-2029, so the final shape of these rules matters more than today's headlines.
• Keep a backup country on your list. Our posts on UK student changes 2026-27 and Australia student visa rules cover current post-study work options.
• Plan your F-1 visa interview early once you have your I-20. Our post on US visa appointment wait times explains current waits.

What current H-1B and L-1 holders should do now

• The grace period still applies today. If you lose your job now, the current 60-day window is available.
• Keep an emergency fund and an updated CV, so you can move fast if a final rule removes the gap.
• Keep records together: pay slips, I-797 approval notices, I-94 records and offer letters.
• For extensions, prepare as if it were a new petition: detailed job duties, degree evaluation and client letters where relevant. File well before your status ends.
• H-4 families: your status follows the main visa holder's, so plan together.
• Speak to a US immigration attorney before changing jobs, travelling while a case is pending, or if you are laid off.

How to submit a comment on regulations.gov

Anyone can comment, including students, parents and workers in India. Comments are published, so do not share passport numbers, A-numbers or other private details.

• Go to regulations.gov and search the docket ID: USCIS-2026-0364 (grace period), ICEB-2026-0100 (OPT fee) or USCIS-2026-0529 (deference).
• Open the proposed rule and click Comment.
• Write in plain English. Explain how the change would affect you, with facts such as costs, dates and family situation.
• Submit and save the tracking number you receive.
• Deadlines run on US Eastern time. The grace period and deference dockets accept comments until midnight Eastern at the end of 10 November and 13 November, which is about 10:30 am IST the next day. OPT fee comments must be received by 9 November. Do not leave it to the last hour.

A comment is not a vote. DHS weighs reasons and evidence, so one specific, factual comment counts for more than a copied template.

How Travlys helps

Travlys does not give legal advice on US immigration status; for that, consult a licensed US immigration attorney. What we do is file US visa applications from ₹19,940 (service fee, government fees extra), check your documents before your interview and track rule changes on our travel news page. We have filed 5,000+ visas with a 98% approval rate. WhatsApp us on +91 82009 18967.

Last checked: Rules were checked on 5 November 2026 against the Federal Register notices, regulations.gov dockets and court reports listed below. Proposals can change or be withdrawn, so check the Federal Register before you act.