Trump Administration Proposes Eliminating 60-Day Grace Period for H-1B Visa Holders After Job Loss

The Trump administration has proposed eliminating a 60-day grace period that allows skilled foreign workers on H-1B and other temporary visas to remain in the U.S. after losing their jobs. According to a government notice, the change would require these individuals to leave the country as soon as their employment is terminated.

Details of the Proposal

The planned rule change was published in the Federal Register on Thursday by the U.S. Department of Homeland Security (DHS). The current regulation, in place since 2017, provides a two-month window for visa holders to find a new sponsoring employer or arrange their personal affairs before departing the U.S.

The DHS acknowledged in its proposal that the change could cause disruption for companies. However, it argued that the vacated jobs could be filled by American workers. The notice also stated that employers could petition for the immigrant workers to return if a workforce requirement exists.

Market and Sector Impact

The proposal represents a potential blow to the U.S. technology and consulting sectors, which rely heavily on the H-1B visa program to fill roles where they face a shortage of qualified domestic applicants. Key sponsors of H-1B visas include major IT and outsourcing firms such as Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree, as well as global consultancies like Deloitte, PwC, and Ernst & Young.

Immigration law experts noted the significant operational challenges the rule would create. Lawyers at Berardi Immigration Law stated the move would "sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees."

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Context and Next Steps

This proposal is the latest in a series of actions by the Trump administration aimed at limiting legal immigration. Other recent measures include higher visa fees for skilled workers and a pause on certain immigrant visa appointments.

If implemented, the elimination of the grace period would affect a wide range of visa categories beyond the H-1B, including:

• E-1, E-2, and E-3 visas for traders, investors, and specialty workers
• L-1 visas for intracompany transferees
• O-1 visas for individuals with extraordinary abilities
• TN visas for professionals from Canada and Mexico

The proposed rule is now subject to a two-month public comment period before it can be finalized and enacted into law.