US proposes ending H-1B 60-day grace period after job loss: What changes

Indian technology workers on H-1B visas could face a much shorter deadline to leave the United States if they lose their jobs under a new proposal by the Donald Trump administration. The US Department of Homeland Security (DHS) has proposed eliminating the discretionary 60-day grace period that currently gives certain foreign workers time to find another job or arrange their departure.

The proposal, reported by news agency PTI, could affect Indian professionals working for technology companies, which are among the largest users of the H-1B programme.

The proposed rule, titled "Eliminating the Discretionary 60-day Grace Period", is expected to be published in the Federal Register. DHS has invited public comments for 60 days before deciding whether to finalise the change.

What happens if the rule is approved?

At present, an eligible H-1B worker whose employment ends can generally remain in the US for up to 60 days, or until the end of their authorised stay, whichever comes first. This period can be used to look for a new employer, change immigration status or prepare to leave the country.

The proposed change would remove this discretionary grace period.

If it becomes final, a foreign worker whose employment ends could be required to leave the US immediately unless they have another independent legal basis to remain in the country.

This would significantly change the options available to workers who lose their jobs unexpectedly, particularly during layoffs.

The worker could no longer simply rely on the 60-day window to find another US employer while remaining in the country. Instead, they may have to leave the US and later seek admission again after securing a new job and completing the required immigration process.

Why is this important for Indian H-1B workers?

The H-1B programme is widely used by US employers to hire foreign professionals for speciality occupations requiring technical or theoretical expertise. Indian nationals account for a large share of H-1B beneficiaries, particularly in the technology sector.

For such workers, the 60-day period has provided an important cushion after job loss. Finding a new employer involves more than securing an offer because the prospective employer also needs to complete the relevant immigration process.

Removing the grace period could therefore make an involuntary job loss more disruptive.

It could also reduce the flexibility that workers have had to switch employers without first leaving the US.

Which visa categories would be affected?

The proposed rule is broader than H-1B visas. DHS wants to eliminate the discretionary maximum 60-day grace period for several categories, including:

• H-1B and H-1B1 workers
• L-1 workers
• O-1 workers
• E-1 and E-2 workers
• E-3 workers
• TN workers

Dependants of workers in these categories

The current grace-period framework was introduced in 2016 during the Barack Obama administration. Its objective was to provide greater job portability and flexibility to highly skilled foreign workers and make it easier for US employers to retain or hire such workers.

Risk of deportation proceedings

The proposal could also have more serious immigration consequences for some workers.

Immigration law firm Fragomen said the removal of the grace-period regulation could result in some affected foreign nationals receiving a Notice to Appear. This is the government's first formal step towards starting removal proceedings.

The risk could be higher for visa categories where employers are required to promptly notify the government when a foreign worker's employment ends.

For an H-1B professional, this means that losing a job could become an immigration issue much more quickly than under the existing system.

How many workers could be affected?

DHS estimates that the number of primary beneficiaries who either experienced a cessation of employment or voluntarily changed employers was 65,752 in 2025. The figure was as high as 80,034 in fiscal year 2023 and fell to 40,959 in fiscal year 2021.

Between fiscal years 2021 and 2025, only 5.77 per cent of 328,758 primary beneficiaries who lost employment or changed employers had a new petition filed for them by another employer.

The figures indicate how difficult it can be for affected foreign workers to transition quickly to another employer.

What should Indian workers know?

The proposal is not yet a final rule. H-1B workers will continue to have the existing framework while the US government considers public comments and decides whether to implement the change.

If finalised, however, workers on H-1B and other affected visas would need to plan for a much faster exit after employment ends. Those who subsequently secure a US job could potentially need to complete the required visa process through a US embassy or consulate before returning.

The proposal is part of the Trump administration's broader efforts to tighten legal migration rules since returning to office in January 2025.