US Moves to Scrap H-1B’s 60-Day Grace Period: Know What It Means for Indian Workers

The United States Department of Homeland Security has proposed eliminating the 60-day post-employment grace period for non-immigrant workers, striking a heavy blow to thousands of Indian professionals across America.

The Office of Information and Regulatory Affairs has reportedly cleared the regulatory review, bringing the proposal one step closer to public release. While the measure has not yet taken effect, its publication will open the door to a public scrutiny period before any final regulation is implemented.

What the Proposal Entails

Introduced in 2017, the existing 60-day grace period allows foreign workers who lose their jobs to remain in the US for up to 60 consecutive days or until their authorised stay expires. This buffer provides crucial time to secure new employment, change immigration status, or make travel arrangements.

The DHS measure seeks to remove this discretionary period. Beyond H-1B visa holders, the change will also impact foreign workers under several other categories, including E-1, E-2, E-3, H-1B1, L-1, O-1, and TN visas, alongside their dependents as per reports.

Because the full text of the proposal remains unpublished, specific details such as potential exceptions or alternative arrangements remain unknown. However, without a comparable buffer, laid-off workers will face severely restricted timelines to secure another qualifying position or alter their status from within the US.

Why It Matters to Indian Skilled Workers

Indian nationals represent the largest demographic of beneficiaries under the US skilled-worker visa programme. Indian citizens accounted for 71% of all approved H-1B petitions in fiscal year 2024.

If finalised, the policy change will leave workers who experience sudden job losses with little room to navigate complex administrative procedures or secure fresh sponsorships.

Severe Backlash from Policy Experts

Former White House adviser Ajay Jain Bhutoria has reportedly condemned the proposal, describing the move to scrap the buffer as "inhumane and unworkable".

Bhutoria, who advised former US President Joe Biden, advocated for extending the window instead. He argued that the grace period should be expanded to 180 days to give workers and their families adequate time to manage housing, children's schooling, and career transitions after an unexpected job termination.

What Comes Next

The current 60-day framework remains operational for now. Once the DHS officially publishes the proposed rule, public stakeholders will be granted an opportunity to submit feedback. The agency must review these comments before deciding whether to issue a final regulation and set an effective implementation date.