US Proposes Scrapping 60-Day Grace Period After Job Loss For H-1B Holders, Set To Hit Indians Hard

The Trump administration has proposed scrapping the current 60-day grace period for H-1B workers who lose their jobs, potentially leaving laid-off foreign workers with far less time to find a new employer or secure another immigration status.

The proposal by the Department of Homeland Security (DHS) would remove the regulation that currently allows eligible H-1B and certain other employment-based visa holders, along with their dependents, to remain in the US for up to 60 days after their employment ends.

H-1B Workers Could Have to Leave US Immediately

If finalised, workers whose employment or qualifying activity ends would generally be required to leave the United States immediately, unless they have another legal basis to remain in the country.

Under the existing rule, eligible workers can stay for up to 60 days, or until the end of their authorised validity period if it comes earlier. The grace period is discretionary and can also be shortened or eliminated by DHS.

Proposal Would Reverse 2016 Rule

The grace-period provision was introduced in 2016 and took effect in January 2017 to provide greater job portability, stability and flexibility to high-skilled foreign workers whose employment ended before their visa petition expired.

The current rules also allow some workers to seek a change or extension of status, adjustment to permanent resident status or a new employer-sponsored petition while remaining in the US.

Nearly 66,000 Workers Affected Annually

DHS data cited in the proposal shows that an average of 65,752 primary beneficiaries in the affected employment-based visa categories either lost jobs or changed employers annually between fiscal years 2021 and 2025. Nearly 99 per cent were H-1B workers.

The department estimated that around 3,795 workers annually had a new Form I-129 petition filed by another employer during the existing grace period.

DHS Acknowledges Potential Income Loss

DHS acknowledged that the proposed change could cause some workers to lose income if they need additional time to search for a job but are forced to leave the US before starting new employment.

The department said the move would better align immigration regulations with statutory requirements, reduce administrative burdens and strengthen programme integrity by reconnecting a worker's legal status directly to the employment or activity that formed the basis of their admission.

The proposal is not yet a final rule. DHS has invited public comments before any final decision is made.

What the Move Could Mean for Indian H-1B Workers

The proposed change could have a significant impact on Indian professionals, who make up the largest share of H-1B visa holders. Under the current 60-day grace period, an Indian worker who loses a job can use the window to search for another employer, have a new H-1B petition filed and, in eligible cases, continue staying in the US while the immigration process moves forward.

If the proposal is finalised, that cushion could largely disappear. Indian H-1B workers laid off by their employers could be required to leave the US immediately, unless they have another valid basis to remain. This would put greater pressure on workers to secure a new job and complete the necessary immigration process without the benefit of the existing 60-day window.