Trump administration proposes waiving grace period for H-1B holders after job loss

Rule will end 60-day grace period for skilled workers to find new jobs

The Trump administration ​has proposed eliminating a 60-day grace period that allows certain immigrants, including skilled workers on H-1B ‌visas, to stay in the United States and find a new sponsor after losing their job, according to a government notice posted online Thursday.

Under the planned rule change, published in the Federal Register by the US Department of Homeland Security, those with H-1B and certain other ​temporary work visas would have to leave the country as soon as their employment ends — a potential ​blow to top American tech companies that rely heavily on foreign workers.

It is the latest ⁠step by US President Donald Trump to limit legal migration since returning to office in January 2025. His ​administration has also introduced higher visa fees for skilled workers and recently paused immigrant visa appointments at US missions around the world ​while it implements a new training program.

Read: What are H-1B visas for skilled workers and what changes loom?

Companies impacted by the change could see some disruption, DHS wrote in its proposal, but it said the jobs could go to American workers instead. In some situations, immigrant workers who leave could potentially reapply if their employer petitions ​for them, it added.

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

The 60-day grace period, in place since 2017, ‌allows foreign ⁠workers time to find another US job or get their affairs in order — whether selling a home or pulling children out of school — before leaving the country.

H-1B visas, established by Congress in 1990, are especially critical for tech companies seeking talent from India and China, allowing them to fill roles where there is sometimes a lack of qualified ​US workers.

Consultancy companies such as ​Deloitte, PwC and Ernst & ⁠Young, as well as outsourcing giants like Tata Consultancy Services, Infosys, HCL Tech and LTIMindtree are top H-1B sponsors.

Lawyers for Berardi Immigration Law, which specializes in business-related immigration issues, said ​the move would "sharply compress the timeline HR teams have to manage layoffs and offboarding ​for foreign national ⁠employees."

Also Read: Trump administration proposes $100,000 H-1B visa fee

If implemented, the change would also apply to E-1 international trader visa holders; E-2 commercial vehicle operator visa holders; L-1 short-term work for executives or managers with international companies; O-1 visas for people "with an extraordinary ability" in science, sports or ⁠the arts; ​and TN professional workers.

It also would impact H-1B1 skilled worker visa ​holders from Singapore and Chile and E-3 specialty worker visa holders from Australia.

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