DHS Proposes Scrapping 60-Day Grace Period; H-2B Cap Reached; Salvadoran TPS in Limbo
The Department of Homeland Security proposed eliminating the 60-day grace period for certain nonimmigrant workers after employment ends, affecting categories like H-1B, L-1, and O-1, with comments due by November 10, 2026. USCIS announced it has met the H-2B cap for the first half of fiscal year 2027, rejecting new petitions filed after September 4 for start dates before April 1, 2027. Temporary Protected Status for Salvadorans remains uncertain after its September 9 expiration, while USCIS extended TPS benefits for Sudan and Ukraine until October 19, 2026.
The proposed elimination of the 60-day grace period would affect several employment-based visa categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN classifications. Under current rules, workers in these categories may remain in the U.S. for up to 60 days after losing their jobs, providing time to find new employment or adjust status. The public comment window closes November 10, 2026.
Separately, the H-2B cap for the first half of fiscal year 2027 has been reached, with September 4, 2026, as the final receipt date for new petitions seeking start dates before April 1, 2027. Meanwhile, TPS for Salvadorans remains unresolved past its September 9 expiration, though USCIS has indicated protections continue informally. TPS for Sudan and Ukraine, however, has been formally extended through October 19, 2026.
These developments could create significant uncertainty for employers and foreign workers alike. Eliminating the grace period may pressure nonimmigrant workers to depart quickly after job loss, potentially disrupting families and careers. The H-2B cap reaching early could strain seasonal industries that depend on temporary labor. Salvadoran TPS holders face prolonged limbo, affecting over 170,000 individuals whose work authorization and residency status remain unclear. Together, these policies may reshape labor markets and immigrant communities, with ripple effects on businesses, households, and local economies that rely on these workers.