Trump administration proposes to end 60 day H-1B grace period after job loss; Indian workers to get impacted

The Donald Trump administration has proposed a major change to the rules governing foreign workers in the United States. The proposal would end the current 60 day grace period available to some temporary visa holders after they lose or leave their jobs.

The US Department of Homeland Security (DHS) has proposed the rule change, which could put greater pressure on Indian professionals holding H-1B and certain other temporary work visas. Under the proposed system, workers would be required to leave the US once their employment ends.

What the proposed rule would change

At present, eligible foreign workers can generally remain in the US for up to 60 days after a layoff or termination, or until their authorised stay expires, whichever comes first. The period can allow them to search for another employer, apply for a change of status such as a transition to a B visitor visa, or prepare to leave the country.

The proposed change would remove that flexibility and directly link a worker's non-immigrant status to the employment or activity that supported their admission or status in the US.

“This proposal restores a direct relationship between an alien’s non-immigrant status and the specific employment or activity that formed the basis of his or her admission or grant of status in the United States and reduces administrative burden,” the DHS said in a statement on Thursday.

The proposal would also affect American technology companies and other businesses that depend on foreign workers. The DHS acknowledged the potential impact on companies but said the affected positions could instead be offered to American workers.

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Policy introduced in 2016 could be reversed

The proposed rule represents a reversal of a policy introduced by DHS in 2016. The agency had then recognised that workers could lose their jobs through circumstances beyond their control and allowed skilled foreign workers additional time to secure new employment.

The DHS said some workers who leave the US could potentially return if their employer later files a petition on their behalf.

"DHS presumes that they will either offer the same jobs to equally qualified U.S. workers or go through the I-129 petition process depending on their workforce requirement," the notice said.

The proposal comes as the Trump administration continues to tighten rules around legal migration after returning to office in January 2025. The administration has also introduced higher visa fees for skilled workers and recently paused immigrant visa appointments at US missions worldwide while it rolls out a new training programme.