Trump Administration Moves to End H-1B 60-Day Grace Period After Job Loss

The Trump administration has proposed eliminating the 60-day grace period that allows certain H-1B visa holders and other temporary foreign workers to remain in the United States after their employment ends.

If finalized, the Department of Homeland Security (DHS) proposal would require affected workers to leave the US when their qualifying employment ends unless they have another lawful basis to remain.

The proposal is particularly significant for Indian professionals, who make up a large share of the H-1B workforce. It could also affect US technology companies and other employers that depend on foreign skilled workers.

Importantly, the 60-day grace period has not yet been eliminated. The proposal must go through the federal rulemaking process, including a public-comment period, before any final change takes effect.

What DHS Is Proposing

The existing H-1B rules generally give eligible workers up to 60 days after employment termination—or until the end of their authorized stay, whichever comes first—to find another job, change status or prepare to leave the country.

DHS now wants to remove that flexibility and establish a closer link between a foreign worker's immigration status and the specific employment that supported their admission or status.

The proposal covers more than H-1B workers. Other temporary employment-based categories that could be affected include L-1, O-1, E-1, E-2, TN, H-1B1 and E-3 visas.

If the rule becomes final, workers whose employment ends could face significantly less time to arrange a new employment-based immigration option from inside the US.

Why Indian H-1B Workers Could Be Hit Hard

Indian professionals are likely to be among the most affected because India has historically accounted for the largest share of H-1B beneficiaries.

Under the current system, a worker who is laid off can use the grace period to interview with other employers and complete the process for a new H-1B sponsor.

Removing that window could make layoffs much more disruptive. A worker who loses a job may have to leave the US while a prospective employer completes the required petition process, depending on the circumstances and final rules.

The impact could extend to families, particularly where workers have spouses, children, housing commitments or other long-term ties in the country.

Potential Impact on US Employers

The proposed change could also affect companies that rely on foreign skilled workers, particularly in technology, consulting and other specialized industries.

Employers may have less flexibility to retain experienced foreign workers after layoffs or during job transitions. Companies could also face greater pressure to make hiring and sponsorship decisions quickly.

DHS, however, argues that positions affected by the change could instead be offered to qualified US workers. The agency has also indicated that employers could continue using the existing petition process when they need foreign talent.

Part of a Broader Immigration Crackdown

The proposal is the latest in a series of immigration measures introduced by the Trump administration.

The administration has also pursued higher costs and tighter requirements for skilled-worker visas. In August, DHS proposed a $103,265 fee for certain H-1B cap-subject petitions, adding to concerns among employers about the cost of hiring foreign professionals.

Together, these measures point toward a broader effort to make the US skilled-worker immigration system more restrictive and more closely tied to specific employment.

The Rule Is Not Yet Final

For current H-1B workers, the distinction between a proposal and a final rule is crucial.

The existing 60-day grace period remains available while the proposed change goes through the regulatory process. The final version could also contain changes, exceptions or transition provisions that are not yet known.

Workers facing a job loss should therefore not assume that the proposed immediate-departure requirement is already in effect.

Key Takeaways

• The 60-day grace period remains in effect for now: DHS has proposed ending it, but the rule is not final.
• H-1B workers could face faster departures: If approved, losing qualifying employment could leave workers with far less time to arrange another legal status.
• Indian professionals could be disproportionately affected: India is the largest source of H-1B beneficiaries.
• Several visa categories are included: The proposal extends beyond H-1B to categories such as L-1, O-1, E-1, E-2 and TN.
• US companies could face greater hiring pressure: Employers dependent on foreign talent may have less flexibility during workforce changes.

Why This Matters

Ending the H-1B grace period would significantly change how foreign professionals manage layoffs and job changes in the United States. The current 60-day window provides a limited but important opportunity to find another employer or make immigration arrangements without immediately leaving the country.

For Indian workers and US companies that rely heavily on international talent, removing that cushion could make employment disruptions considerably more difficult. However, the proposal is still subject to the federal rulemaking process, so its final impact will depend on the regulation ultimately adopted by DHS.