SUMMARY
The Trump administration has proposed eliminating the 60-day grace period that allows certain foreign workers, including H-1B visa holders, to remain in the United States after losing their jobs while looking for a new employer or arranging their departure. The proposal from the Department of Homeland Security is not yet final. If adopted, affected workers could face a much shorter timeline to leave the country after their employment ends, creating major challenges for workers, families and companies that rely on skilled foreign talent.
The proposal, issued by the U.S. Department of Homeland Security, would significantly reduce the amount of time affected workers have to find another employer willing to sponsor them, change their immigration status or prepare to leave the country.
The move represents another major shift in the Trump administration's approach to legal immigration and could have a significant impact on technology companies, consulting firms and other businesses that depend heavily on foreign skilled workers.
What Is the 60-Day Grace Period?
The 60-day grace period was introduced in 2017 to give certain nonimmigrant workers additional time after their employment ends.
Under the current system, eligible workers can generally remain in the United States for up to 60 days after their employment is terminated, or until the end of their authorized stay if that comes sooner.
During that period, an H-1B worker can search for another job, potentially have a new employer file the necessary petition, seek another eligible immigration option or make arrangements to leave the United States.
For many workers, the period provides an important buffer after an unexpected layoff.
What Would Change?
Under the proposed rule, the government would eliminate this discretionary 60-day grace period for affected temporary workers.
That could mean a worker whose employment ends would no longer automatically receive the same amount of time to find another sponsor or organize a departure from the United States.
The change would make layoffs particularly difficult for foreign workers because their immigration status is closely connected to their employment.
A U.S. worker who loses a job can generally search for another position without their right to remain in the country being tied directly to that employment. H-1B workers face a different situation because their authorization is connected to a sponsoring employer.
Which Visa Holders Could Be Affected?
The proposal is broader than H-1B visas alone.
According to the Department of Homeland Security proposal, the change could also affect several other temporary employment-based visa categories, including E-1, E-2, L-1, O-1 and TN workers.
It would also cover H-1B1 workers from Singapore and Chile as well as E-3 workers from Australia.
This means the proposal could affect a wide range of foreign professionals working legally in the United States, including executives, highly skilled professionals and workers with specialized abilities.
Why H-1B Workers Are Important to the U.S. Tech Industry
The H-1B program has become particularly important to America's technology sector.
U.S. technology companies use the program to recruit specialized workers in areas such as software engineering, artificial intelligence, data science and other technical fields.
Workers from India and China make up a particularly large share of the H-1B workforce, while major consulting and outsourcing companies are also among the program's leading sponsors.
Companies such as Deloitte, PwC and Ernst & Young, as well as Indian technology firms including Tata Consultancy Services, Infosys, HCLTech and LTIMindtree, have historically sponsored large numbers of H-1B workers.
Why the Administration Supports the Change
The Trump administration argues that reducing the grace period could encourage companies to prioritize qualified American workers.
The Department of Homeland Security said companies could offer affected positions to equally qualified U.S. workers or use the existing immigration petition process if they still need foreign talent.
The proposal is consistent with the administration's broader effort to tighten legal immigration and place greater emphasis on American workers.
The administration has already pursued other measures affecting skilled immigration, including higher costs for some H-1B petitions and changes to the selection process.
Why Workers and Companies Are Concerned
Immigration lawyers and worker advocates warn that removing the grace period could create serious practical problems.
A worker who suddenly loses employment may need time to find another company willing to sponsor an H-1B transfer. That process can involve interviews, negotiations, immigration paperwork and coordination between employers and immigration lawyers.
Without the existing 60-day window, companies could be forced to make decisions much faster, while workers could face the possibility of leaving the country before securing another position.
The change could also affect families. Foreign workers may have homes, children in schools, leases and other commitments in the United States that cannot easily be reorganized within a very short period.
Layoffs Could Become More Complicated
The proposed rule could also change how American companies manage layoffs involving foreign workers.
Immigration lawyers have warned that human-resources departments would have to manage the immigration consequences of layoffs much more quickly.
For employers, ending an H-1B worker's employment could potentially trigger an urgent immigration process involving the worker, the company and government agencies.
For workers, the difference between having 60 days and having to leave much sooner could determine whether they have a realistic opportunity to remain in the United States.
It Is Not Yet Final
One of the most important points is that the proposal does not immediately eliminate the 60-day grace period.
The Department of Homeland Security's proposal must go through the federal rulemaking process, including a public comment period. The current grace-period rules therefore remain in effect while the proposed change is considered.
The administration is expected to receive comments from businesses, immigration lawyers, workers, industry groups and other interested parties before deciding whether to finalize the rule.
What Could Happen to Workers Who Lose Their Jobs?
If the proposal eventually becomes final in its current form, workers who lose employment could face a much more urgent decision.
They could need to secure another immigration option quickly or leave the United States rather than relying on the existing 60-day period to organize their next step.
In some circumstances, a worker who leaves the country could potentially return later if an employer files a new petition and the worker qualifies for the relevant visa requirements.
But leaving the country can create significant personal and financial disruption, particularly for workers who have spent years building careers and families in the United States.
Another Pressure Point for H-1B Workers
The proposed grace-period change comes at a time when the H-1B system is already facing other significant policy changes.
The administration has pursued higher immigration-related costs and tighter controls around skilled-worker visas. These measures have increased uncertainty for companies planning their workforce and for foreign professionals considering careers in the United States.
The combined effect could make the U.S. immigration system more expensive and less predictable for companies that depend on international talent.
What Happens Next?
The proposal will now move through the federal rulemaking process and face a period of public comment.
Businesses and immigration groups are likely to argue that eliminating the grace period could make it harder for U.S. companies to retain skilled workers, particularly during periods of layoffs or economic uncertainty.
Supporters of the change are likely to argue that American employers should prioritize domestic workers whenever qualified candidates are available.
The final outcome could therefore become part of the wider debate over how the United States balances the protection of domestic employment with its need for highly skilled international workers.
Conclusion
The Trump administration's proposal to eliminate the 60-day grace period would represent a major change for H-1B workers and other temporary foreign professionals in the United States.
For workers, losing a job could become far more urgent because the existing period for finding another sponsor or preparing to leave the country could disappear.
For American companies, particularly technology and consulting firms, the change could make workforce planning more complicated and increase the pressure to move quickly when foreign employees are laid off.
But for now, the proposal is not yet the law. The existing 60-day grace period remains available while the government considers public comments and determines whether to finalize the proposed rule.
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