The US government is moving towards a proposal that could end the 60-day grace period for H-1B visa holders after their employment ends. If finalised, the H-1B rule change could have a major impact on Indian professionals working in the US, particularly those who depend on their jobs to maintain visa status while waiting for an employment-based green card.The H-1B 60-day grace period has not been removed yet. As of August 9, 2026, the existing rule remains in force. The Department of Homeland Security (DHS) has reportedly moved the proposal into the regulatory review process, but detailed proposed rules have not yet taken effect.Also Read| US may end H-1B job-loss grace period for foreign workers; Indians could face impactWhat is the H-1B 60-day grace period?Under current US immigration rules, eligible H-1B workers whose employment ends before their authorised stay expires can get a grace period of up to 60 consecutive calendar days, or until their authorised stay expires, whichever comes first.This period gives an H-1B visa holder time to find another employer willing to sponsor them, seek an eligible change of immigration status or prepare to leave the US.The grace period itself does not allow an unemployed H-1B holder to work.However, separate H-1B portability rules allow eligible workers to start working for a new employer after the new company properly files a qualifying H-1B petition with US Citizenship and Immigration Services (USCIS).What is changing in the H-1B grace period?The reported DHS proposal seeks to remove the protection that currently provides eligible workers up to 60 days after employment ends.If the H-1B grace period is eliminated, a worker who loses a job could face an immigration-status problem much sooner.Consider an Indian software professional who is laid off while their H-1B approval remains valid for another two years. Under the current system, the worker may have up to 60 days to find another H-1B sponsor.Without this window, the worker could need a new employer and immigration filing much closer to the date their existing employment ends.That could make an unexpected H-1B layoff significantly harder to manage.Will H-1B workers have to leave the US immediately after losing a job?Not under the rules currently in force.The proposed regulation has not yet been published in final form. It is therefore too early to conclude that every H-1B worker would have to leave the US immediately after a layoff.The eventual rule could contain exceptions, transition provisions or other protections.For now, eligible H-1B holders continue to have access to the existing 60-day grace-period framework.Also Read|H-1B visa extensions could soon come with a hefty new price tag under new Trump plan Can H-1B workers still change employers?Yes.The proposed change to the 60-day grace period does not mean the US is abolishing H-1B employer transfers.An eligible H-1B professional can move from one employer to another under the H-1B portability framework if the immigration requirements are met.The key issue is what happens when there is a gap between the two jobs.The current 60-day period gives a laid-off worker time to search for another job and arrange an H-1B filing. Removing that period could make unexpected employment gaps much more difficult.What happens if an H-1B worker resigns?The issue is not limited to layoffs.Under the existing framework, the grace period can apply following voluntary or involuntary cessation of employment.If the 60-day protection is removed, an H-1B holder considering resignation may need to ensure that the next employer and immigration filing are ready before leaving the existing job.How could the H-1B change affect H-4 spouses and children?The impact could extend to the worker's family.Spouses and children of H-1B workers often stay in the US under H-4 dependent status. Their immigration position is linked to the principal H-1B holder's status.If the H-1B worker cannot maintain status following the loss of employment, dependent family members could also face immigration consequences.The current grace period therefore gives families time to arrange another H-1B employer, seek another eligible immigration status or plan their departure.Does an approved I-140 protect an H-1B worker after a layoff?Not automatically.Many Indians waiting for employment-based green cards have an approved I-140 immigrant petition.An approved I-140 can help qualifying workers extend their H-1B status beyond the normal six-year limit while waiting for a green card.But an approved I-140 does not by itself give an H-1B worker unrestricted permission to remain employed or stay indefinitely in the US after losing the job supporting their non-immigrant status.That distinction is particularly important for Indian workers facing long EB-2 and EB-3 queues.Is the H-1B 60-day grace period ending in 2026?Not yet.As of August 9, 2026, the H-1B 60-day grace period remains available under existing US immigration rules. The reported change is still going through the regulatory process.The next important development will be publication of the proposed rule. That should clarify whether DHS wants to eliminate the full 60-day period, shorten it, provide exceptions or introduce transition arrangements for existing H-1B workers.Until a new rule takes effect, H-1B workers should not assume that the grace period has been abolished.