The US Department of Homeland Security is set to propose a new rule that could eliminate the 60-day window reserved for international workers in the United States on H-1B visas to find a new job after losing their previous one.

Since Donald Trump’s return to the presidential office in 2025, his administration has vowed to seriously overhaul the H-1B visa program, which helps US employers recruit high-skilled foreign workers, in a bid to reduce what it describes as the “replacement” of American employees. In recent years, Indian nationals have received the majority of the H-1B work visas, accounting for over 70% of all annual approvals.

This drastic crackdown has seen the Republican leader’s government double down on numerous policy changes and brand new executive orders targeting the ‘specialty occupations’ non-immigrant visa category. However, another rule, currently in the “proposed” stage (RIN: 1615-AD22), could severely impact international workers’ ability to remain in the United States if they lose their job at a time when the job market is already uncertain and overshadowed by the artificial intelligence takeover.

What is the 60-day grace period for H-1B workers?

Created by regulation a decade ago, the 60-day grace period went into effect in early 2017. So far, under this rule, E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants and their dependents have been granted a safety net of 60 days or until the principal’s I-94 (Arrival/Departure record) expiration date, if that comes earlier, if the candidate’s employment ceases.

For this brief period, the visa holders of the aforementioned categories are not considered to have failed to maintain their nonimmigrant status after they lose their job. While the DHS has always had the discretion to refuse or shorten the grace period, it allows impacted foreign nationals to seek employment in the same nonimmigrant category. They may also change status without departing the US.

What’s the current status of the new DHS rule?

Although currently merely a proposed regulation, the rule is under review at the federal Office of Management and Budget (OMB). However, if implemented, it would eliminate this grace period offered to certain visa holders and their dependents after the principal applicant loses employment before their period of stay expires.

Consequently, impacted foreign nationals and their dependents would be forced to immediately leave the US. They would no longer be accorded the ability to change status or look for new employment opportunities, given the direct hit to their legal status in the country.

After clearing the OMB review, the proposal will be published in the Federal Register for public comments.

More about Trump admin’s H-1B program overhaul

Last September, Donald Trump signed a proclamation to impose an additional $100,000 fee for new H-1B applications to curb what his White House described as “large-scale replacement of American workers through systemic abuse of the program.”

For the time being, however, a federal court ruling has blocked the implementation of the hefty fee, branding it unlawful.

Additionally, the US State Department introduced the expansion of screening and vetting for H-1B and Dependent H-4 visa applicants in December, making it mandatory for them to adjust their privacy settings on all social media profiles to “public.”

Although the Trump administration’s plan to impose a $100,000 fee on new H-1B petitions is currently in limbo, another proposed rule could significantly raise the fee for H-1B extensions.

Homeland Security is expected to soon publish a long-planned regulation to expand the  U.S. Customs and Border Protection (CBP) 9-11 Response and Biometric Entry-Exit Fee (9-11 response fee) to H-1B and L-1 extension petitions filed by employers.

“The regulatory changes correct DHS’s interpretation of statutory language to require that covered employers submit the 9-11 Biometric Fee for all extension of status petitions, regardless of whether the related fraud prevention and detection fee applies, which includes extension of status petitions that do not involve a change of employer,” states the draft of a Federal Register slated to be formally published on August 10. The rule will go into effect 30 days after the date of publication.

Several Republican lawmakers have even introduced legislation demanding a complete end to the H-1B program, pushing for the ‘America First’ and ‘Make America Great Again’ agendas heavily advocated by President Trump. 

Disclaimer: This article is for general informational purposes only and does not constitute legal, immigration, or tax advice. Immigration laws and government policies are subject to frequent change without notice. While we strive to provide accurate updates, readers are strongly advised to verify the latest requirements with the official embassy, consulate, or government portal of the respective country. Financial Express is not responsible for any decisions made based on this information. For personalised guidance, please consult a qualified immigration attorney or a certified professional advisor.