US H-1B visa rules may tighten: Trump administration approves review of proposal to end 60-day grace period after layoffs | Today’s news

The White House has completed a review of a proposal that could eliminate the 60-day grace period available to some foreign workers, including H-1B visa holders, after they lose their jobs in the United States.

The proposal was sent by the Department of Homeland Security (DHS) to the Office of Management and Budget (OMB) for review earlier this month. Details of the proposed regulation are not yet public. If the proposal moves forward, it will be published in the Federal Register, followed by a public comment period that typically lasts 30 to 60 days.

The rule would represent a significant change for foreign professionals who depend on employer-sponsored visas to stay in the US legally.

What is the 60 day H-1B grace period?

The 60-day grace period was introduced in 2017 to give certain nonimmigrants and their dependents time to remain in the US after employment ends.

During this period, an H-1B visa holder who is laid off or otherwise loses his or her job can look for another job and possibly change employers without having to immediately leave the country.

The provision applies to several visa categories, including H-1B, H-1B1, L-1, O-1, E-1, E-2, E-3, and TN, as well as eligible dependents.

DHS has the right to reduce or deny a grace period on a case-by-case basis, although immigration advisers say it rarely does.

What happens when the grace period is removed?

If the proposed regulation is finalized and the 60-day protection is eliminated, foreign workers could face a much shorter period — or potentially no automatic grace period — after their employment ends.

Generally, they would be expected to leave the US when their employment ends, unless another immigration option is available or USCIS exercises discretion and waives the loss of status.

This could make it especially difficult for H-1B workers to lose their jobs because their immigration status is generally tied to employment.

Under the current system, a dismissed worker has time to look for another sponsoring employer. Eliminating this window could make it much more difficult to find a new job, complete the required immigration process, and maintain lawful status while remaining in the US.

Why Indians may be particularly affected

The proposed change could have a major impact on Indian professionals, as Indians make up the largest group of H-1B visa recipients.

Indian nationals accounted for 71% of successful H-1B applicants in fiscal year 2024, according to data cited in the report.

This means that a change affecting the post-employment grace period could disproportionately affect Indian technology professionals and other skilled workers employed in the US on H-1B visas.

The impact could be particularly significant during periods of layoffs in industries such as technology, consulting and financial services, where H-1B workers are heavily represented.

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Families can also be affected

The proposal would not only apply to workers. Eligible dependents may also be affected when the main visa holder loses their job.

Therefore, for an Indian H-1B worker with a spouse and children in the US, job loss could create an immediate immigration problem for the entire family.

Without the 60-day window, families could have little time to arrange international travel, housing, children’s schooling and other personal matters.

Former White House adviser Ajay Jain Bhutoria criticized the proposal and called for the grace period to be extended to 180 days, not abolished.

“Removing the 60-day grace period is inhumane and unworkable,” Bhutoria said.

He argued that even 60 days may not be enough for a highly skilled worker who suddenly loses his job, especially if that person has family in the US.

“People won’t even have the time needed to manage their leases, transfer their children from school or take care of personal matters,” he said.

The proposal is not yet a final rule

Importantly, the 60-day grace period has not been removed.

The White House has completed its review, but the proposal has yet to be published in the Federal Register. A public comment period would follow, after which the administration could modify, withdraw or finalize the regulation.

The specific provisions will therefore not be known until the proposal is officially published.

A key concern for Indian H-1B workers is that eliminating the grace period could turn unexpected layoffs into an immediate immigration crisis, leaving significantly less time to secure new employment or make arrangements to leave the US.

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