The Trump administration has formally proposed eliminating the 60-day grace period that allows H-1B visa holders and several other categories of foreign workers to remain in the United States after losing their jobs, a change that could significantly increase uncertainty for thousands of Indian professionals employed in the American technology sector.
The proposal, published by the US Department of Homeland Security (DHS), would remove a provision in place since 2017 that gives eligible non-immigrant workers up to 60 days after termination of employment to find another sponsoring employer, change their immigration status or make arrangements to leave the country. If the proposal becomes final, affected workers could be required to leave the US as soon as their employment ends unless they have another lawful basis to remain.
The change is not yet in force. It will undergo a two-month public comment period before the administration can proceed towards a final rule.
Indians could face major impact
The proposed change is particularly significant for Indian professionals because H-1B visas are extensively used by the technology and consulting industries to employ skilled foreign workers. Major consulting and IT services companies are among the largest sponsors of H-1B employees.
The existing grace period provides an important buffer when workers are laid off because H-1B status is tied to employment with a sponsoring company. A worker who finds another employer can generally move through the H-1B petition process without first leaving the United States, provided immigration requirements are met.
Removing that window could sharply compress the time available to foreign workers and employers following layoffs. It could also create difficulties for families who may have to deal with housing, children's schooling and other arrangements at short notice.
The change would extend beyond H-1B professionals. DHS has proposed removing the grace period for several other temporary employment categories, including L-1 intra-company transferees, O-1 workers with extraordinary ability, TN professionals and E-1, E-2 and E-3 visa holders, as well as H-1B1 workers from Chile and Singapore.
DHS cites jobs for Americans
DHS acknowledged that eliminating the grace period could cause disruption for companies employing foreign professionals but argued that positions vacated by departing workers could potentially be offered to qualified American employees.
The department said employers that continued to require foreign workers could use the appropriate petition process, including filing Form I-129, to seek permission to employ them.
Immigration specialists have warned that eliminating the grace period could make layoffs considerably more complicated for employers. Human resources departments currently have a limited but important window to manage the immigration consequences when foreign employees lose their jobs.
The proposal is part of a broader tightening of legal immigration under President Donald Trump since his return to the White House in January 2025. His administration has pursued higher costs and additional restrictions affecting skilled-worker immigration while arguing that US immigration policy should give greater priority to American workers.
60-day protection dates to 2017
The grace period was introduced in 2017 to address a particular vulnerability faced by employment-based visa holders. Because their legal status can depend directly on their jobs, an unexpected termination could otherwise leave workers with little opportunity to secure alternative employment or organise their departure.
Under the existing system, eligible workers can receive up to 60 consecutive days following termination, or until the end of their authorised period of stay, whichever is shorter. The grace period itself does not authorise employment; a worker must obtain the necessary sponsorship and approval to resume work.
For H-1B professionals, the proposed removal would therefore fundamentally alter the consequences of losing a job. Instead of having a two-month window to secure another sponsor, workers could face immediate immigration consequences after termination.
The proposal will now face public scrutiny before any final regulation is issued. Until that process is completed and a new rule takes effect, the existing 60-day grace period remains applicable.