H-1B visa issue: Trump administration proposes to scrap 60-day grace period, Indian techies to be affected | Today’s news
Donald Trump’s administration has proposed a new rule for all H-1B visa holders in the US. If approved, the government would eliminate the 60-day grace period that allows some foreign workers on H-1B visas, including skilled workers, to remain in the U.S. and look for a new sponsor if they lose their jobs. The government published a notice of the new proposal online on Thursday.
Proposal to end the 60-day grace period for H-1B visas
Under the proposed rule, published in the Federal Register by the U.S. Department of Homeland Security (DHS), H-1B and certain other temporary work visa holders would have to leave the country after their employment ends. The move could disrupt major U.S. technology companies that rely heavily on foreign workers, including those from India.
In this case, if someone is laid off, as has become common practice in the era of increasing AI-led layoffs, workers, including engineers from India, will have to return to their countries without a two-month cushion. Usually, H-1B visa holders can use the grace period to secure other employment or leave the country.
The proposal is the latest move by the US president to curb legal migration since he returns to office in January 2025. His administration has raised visa fees for skilled workers and recently suspended visas for immigrants at US missions around the world as it implements a new training program.
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Who will be affected?
DHS acknowledged that several companies may be affected if the new proposed rule goes into effect. But it also argued that the affected jobs could be filled by American workers instead of foreigners. In some cases, foreign workers who leave the country can reapply if their employer files a new petition on their behalf.
“DHS anticipates that they will either offer the same job to equally qualified US workers or go through the I-129 petition process depending on their workforce requirements,” the announcement said, according to Reuters.
Read also | H-1B visa: US approves review of proposal to end 60-day post-dismissal grace period
A 60-day grace period was introduced in 2017. It gives foreign workers time to find another job in the US or arrange to leave the country. This may include selling the house, moving things, or withdrawing the children from school.
The H-1B visa was established by Congress in 1990. It remains particularly important for US technology companies that recruit skilled workers from countries such as India and China. The visa program allows companies to hire foreign workers for specialized positions where they may face a shortage of skilled American workers.
Major H-1B sponsors include consulting firms such as Deloitte, PwC, and Ernst & Young, as well as outsourcing companies including Tata Consultancy Services, Infosys, HCLTech, and LTIMindtree.
Lawyers at Berardi Immigration Law, which specializes in business-related immigration, told Reuters the proposed change would “significantly shorten the timeline HR teams have to manage layoffs and departures of foreign national employees.”
Who else does this rule apply to?
If implemented, the change would also apply to E-1 international business visa holders, E-2 commercial vehicle operators, L-1 visa holders working as executives or managers of international companies, O-1 visa holders with exceptional ability in fields including science, sports or the arts, and TN professional workers.
The proposal would also affect H-1B1 skilled workers from Singapore and Chile and E-3 specialty workers from Australia.
The proposed rule is subject to a two-month public comment period before being finalized by the administration.
(with inputs from Reuters)
