Trump moves to scrap H-1B visa 60-day grace period: Why Indian workers face a new risk

The Trump administration has proposed eliminating a key safety net for skilled foreign workers in the US, including H-1B visa holders, who lose their jobs.

Under the proposed rule, workers could lose the 60-day window currently available to find a new employer, change their immigration status or prepare to leave the country. The proposal, issued by the US Department of Homeland Security (DHS), is part of the administration’s broader push to tighten rules governing legal immigration and employment-based visas.

The move could have an outsized impact on Indian professionals, who make up the largest share of H-1B beneficiaries.

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

The 60-day grace period was introduced in 2017 for certain employment-based non-immigrant visa holders. It allows eligible workers to remain lawfully in the US for up to 60 days after their employment ends, or until their authorised stay expires, whichever comes first.

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For an H-1B worker who is laid off, the period can be crucial. It provides time to secure another sponsoring employer, file a new petition, explore a change of status or make arrangements to leave the US.

DHS now wants to remove this discretionary grace period from the regulations. The proposal argues that the current rule effectively separates a worker’s immigration status from the employment that forms the basis for that status.

What changes if the rule takes effect? 

If finalised, losing an H-1B job could trigger a much tighter timeline. Instead of having up to 60 days to find another employer, a worker would generally have to leave the US once the employment underlying the visa status ends, unless another legal basis allows them to remain.

That would make layoffs considerably more consequential for foreign workers. A person who has spent years building a career in the US could have little time to secure another sponsorship, particularly during periods of hiring freezes or widespread layoffs.

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The proposal would not only affect H-1B workers. DHS is seeking to remove the grace-period provision for several employment-based non-immigrant categories, including E-1, E-2, E-3, H-1B1, L-1, O-1 and TN visas.

Why Indian professionals could be hit hardest 

The proposed change is particularly significant for Indians because they dominate the H-1B programme. Indian-born workers accounted for about 71% of approved H-1B petitions in fiscal 2024.

Indian technology professionals working for US companies or Indian IT services firms could therefore face greater uncertainty if they lose their jobs.

The impact would extend beyond the employee. H-1B workers often have spouses, children, housing commitments and other financial obligations in the US. A sudden loss of status could force families to make decisions about relocation within a very short period.

US tech companies may also feel the pressure 

The proposal could complicate workforce planning for US technology companies that rely on foreign professionals.

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Employers facing layoffs would have less flexibility to give affected workers time to transition to another company. Companies hiring H-1B workers could also face pressure to complete immigration-related processes quickly if they want to retain talent displaced by another employer.

Critics argue that eliminating the grace period could make the US less attractive to highly skilled foreign professionals, while supporters of tighter immigration controls contend that employers should prioritise American workers. The administration sees the change as part of a broader effort to tighten the employment-based immigration system.

Is the 60-day grace period already over? 

No. This is an important distinction. The Trump administration has proposed eliminating the grace period; the change is not yet the law.

The proposal must go through the federal rulemaking process, including a public-comment period, before DHS can issue a final rule. Until then, eligible H-1B workers continue to have access to the existing grace-period framework.

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The proposal comes as the administration is simultaneously pursuing other major changes to the H-1B programme. In August, DHS proposed a $103,265 fee for new H-1B filings, adding another potential barrier for employers seeking to hire foreign skilled workers.