H-1B workers who lose their jobs could soon face a much shorter path to leaving the US under a new Trump administration proposal that would eliminate the 60-day grace period currently available after employment ends.
The Department of Homeland Security proposal would remove the window that has allowed eligible foreign workers to remain in the country while searching for a new employer.
The proposed change could have a significant impact on Indian professionals, who account for the largest share of H-1B beneficiaries approved by the US.
Trump plan could end 60-day H-1B grace period
The 60-day grace period was introduced under regulations that took effect in 2017. It allows eligible H-1B workers to remain in the US for up to 60 days after their employment is terminated, giving them time to find another employer, change their status or make arrangements to leave the country.
DHS is now proposing to eliminate that discretionary grace period. The agency said the move would reduce administrative burdens and restore a more direct relationship between a foreign worker's immigration status and the employment that formed the basis for admission to the US.
{{/usCountry}}DHS is now proposing to eliminate that discretionary grace period. The agency said the move would reduce administrative burdens and restore a more direct relationship between a foreign worker's immigration status and the employment that formed the basis for admission to the US.
{{/usCountry}}If the proposal becomes final, workers who lose their jobs would no longer have the 60-day cushion to secure another sponsor while remaining in the US. Laid-off workers who later receive a new job offer could instead have to leave the country and undergo processing at a US embassy or consulate before returning.
The proposal would also affect certain other temporary workers who currently have access to the same grace period, including L-1 intracompany transferees and O-1 workers.
Indians are the biggest H-1B beneficiary group
The proposed change comes as Indian nationals make up the largest group among H-1B beneficiaries approved by US authorities.
USCIS data for fiscal year 2024 showed that 283,397 approved H-1B beneficiaries were born in India, accounting for 71% of all approved beneficiaries, according to figures from the agency's H-1B data. That puts Indian-born workers far ahead of the next-largest group, workers born in China.
The scale of India's presence in the program means changes to the rules governing what happens after an H-1B job ends are particularly relevant to Indian professionals working in the US.
The new proposal does not specifically target Indian workers, and DHS has not said that Indians would be subject to different rules. Rather, Indian workers could be affected because they constitute the largest group within the H-1B population covered by the proposed change.
What happens if an H-1B worker is laid off?
Under the existing system, an eligible worker who is terminated can use the grace period to look for another sponsoring employer without immediately having to leave the US. The proposal would remove that option.
DHS estimates that an average of 65,752 workers covered by the 60-day grace period experienced a job loss or changed employers each year between 2021 and 2025. During that period, just under 6% had a new employer file to sponsor them within the grace period, while another 1.7% filed to extend or change their status, according to the agency.
The proposal could also increase costs for employers that terminate foreign workers because companies are required to cover transportation costs to an employee's home country, Bloomberg Law reported.
The proposal is not yet final. DHS will allow a 60-day public comment period after the rule is published in the Federal Register.