Trump Administration Proposes Axing Grace Period for H-1B Visa Holders After Job Loss

The Trump administration has proposed eliminating the 60-day grace period that allows H-1B and certain other foreign workers to remain legally in the United States after losing their jobs.

The Department of Homeland Security's proposal would significantly shorten the time available to workers to find a new employer, change immigration status or prepare to leave the country. The proposal is part of a broader effort by the administration to tighten rules governing employment-based immigration.

What the Current 60-Day Rule Allows

Under rules introduced in 2017, eligible H-1B workers who are terminated or otherwise lose qualifying employment can generally remain in the U.S. for up to 60 days, or until their authorized stay expires, whichever comes first.

That window gives workers time to search for another employer willing to sponsor them, file for a different immigration status or make arrangements to leave the United States.

Under the new proposal, that flexibility would largely disappear. Workers could face the loss of their lawful status immediately after their employment ends unless another valid immigration arrangement is already in place.

More Visa Categories Could Be Affected

The proposed change would not apply only to H-1B workers.

DHS is also proposing changes affecting holders of several other employment-related nonimmigrant visas, including H-1B1, E-1, E-2, E-3, L-1, O-1 and TN visas. These categories cover skilled professionals, executives, intracompany transfers and other specialized workers.

That means the impact could extend well beyond the technology sector and affect workers in areas such as finance, engineering, healthcare, management and other specialized professions.

Tech Companies Could Face New Hiring Challenges

The proposal could create additional pressure for U.S. companies that rely on foreign professionals.

American technology firms have traditionally used H-1B visas to employ highly skilled workers in fields such as software development, engineering and data science. Removing the grace period could make layoffs more complicated for employers and leave workers with much less time to transition between jobs.

Employers may also become more cautious about hiring workers who require visa sponsorship if the consequences of a job loss become significantly more immediate.

Indian Professionals Could Be Hit Hard

The proposal is particularly significant for Indian professionals because Indian nationals make up a large share of H-1B workers in the United States.

For those who lose their jobs, finding a new sponsoring employer can already be difficult within the existing 60-day window. Removing that buffer could increase the risk that workers have to leave the country before securing another opportunity.

The issue can also affect families, particularly when workers are supporting spouses, children or other dependents who have built their lives in the U.S.

Part of a Broader Immigration Overhaul

The proposed grace-period change is not an isolated policy move.

The Trump administration has also pursued other measures aimed at reshaping the H-1B system, including higher proposed fees and changes intended to favour higher-paid and more specialized foreign workers. In August, DHS proposed a $103,265 fee for H-1B cap-subject petitions, with public comments open until September 24.

Taken together, the measures signal a broader shift toward making employment-based immigration more restrictive and more expensive for employers.

Proposal Is Not Yet Final

Importantly, the grace-period change is still a proposal and has not taken effect.

DHS must go through the federal rulemaking process, including a public comment period, before the measure can be finalized. The final version could be changed or challenged before becoming enforceable.

Until then, the existing 60-day grace period remains the applicable rule for eligible workers.

A Major Change for Foreign Workers

If ultimately adopted, the proposal would represent one of the biggest changes to the job-loss protections available to H-1B and other employment-based visa holders in years.

For workers, the difference is straightforward but significant: losing a job could move from being a difficult employment problem to an immediate immigration crisis.

For U.S. companies, meanwhile, the change could make workforce planning more complicated at a time when many industries already depend heavily on international talent. The coming public comment and rulemaking process will determine whether the Trump administration's proposal becomes a permanent part of the U.S. immigration system.

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