US moves to end H-1B visa 60-day grace period: What Indian professionals need to know

The Trump administration has moved closer to eliminating the discretionary 60-day grace period available to H-1B and certain other foreign workers after job loss. A Department of Homeland Security (DHS) proposal titled “Eliminating the Discretionary 60-day Grace Period” has cleared White House regulatory review.

However, the proposal has not yet taken effect. The proposed move could have a significant impact on Indian professionals, who accounted for 71 per cent of approved H-1B petitions in fiscal 2024, according to official US figures.

Why the 60-day grace period is important

An unexpected job loss can become a major immigration crisis for an H-1B worker. Under the current rules, eligible workers can generally remain in the US for up to 60 consecutive days after their employment ends, or until the end of their authorised validity period, whichever comes earlier.

The window gives workers time to find another employer willing to sponsor them, change to another eligible immigration status or make arrangements to leave the United States.

“Eliminating the 60-day grace period would turn an unexpected job loss into an immediate immigration emergency. The purpose of the grace period is to give H-1B workers a reasonable opportunity to find another qualifying employer or pursue another lawful immigration option. Without that window, workers who have spent years building careers and lives in the United States could be forced into rushed decisions simply because they lost their job. Any change should recognize that an employment transition and an immigration transition cannot always be completed overnight,” immigration attorneys Gnanamookan Senthurjothi and Veena Vijay Ananth, founders of The Visa Code, told Financial Express (Digital) exclusively.

The attorneys said the grace period acts as an important safety net for workers who unexpectedly lose their employment.

“Losing a job is already a significant professional and financial disruption; requiring a worker to leave the United States almost immediately would add an immigration crisis to an employment crisis,” they said.

The 60-day period allows workers to search for another qualifying H-1B employer, complete the immigration process for a new job or explore another lawful immigration option if eligible.

“This is particularly important for professionals who may have spent many years building their careers, families, homes and lives in the United States,” they added.

What could change for H-1B workers

If the 60-day period is eliminated or substantially reduced, workers who lose their jobs could face significantly greater pressure to immediately resolve their immigration status.

Workers may be forced to make hurried decisions about their careers and families, while employers could lose experienced talent because there is not enough time to complete an immigration transition.

“If the 60-day period were eliminated or substantially curtailed, the practical consequence would be increased uncertainty and pressure on both workers and employers. Workers could be forced into hurried decisions that may not necessarily be in their professional or family’s best interests, while employers could lose experienced talent simply because the immigration timeline does not allow sufficient time for a transition,” Senthurjothi and Ananth said.

They added that any policy change should be assessed not only from an immigration-enforcement perspective but also for its impact on workforce continuity and families.

“Any policy change in this area should therefore be evaluated not only from an immigration-enforcement perspective, but also in terms of its impact on workforce continuity, families and the ability of highly skilled workers to make an orderly transition after an unexpected job loss,” they told Financial Express (Digital).

Proposal clears White House review

The DHS submitted the proposed rule, identified as RIN 1615-AD22, to the White House Office of Information and Regulatory Affairs (OIRA) on August 6.

According to an update on the OIRA website, the proposal cleared White House review on August 27. However, the rulemaking process is not complete. The text of the proposal is not yet public, it has not appeared in the Federal Register, and there has been no public-comment period so far.

This means the existing grace period under 8 CFR 214.1(l)(2) continues to apply for eligible workers. The current regulation covers several employment-based non-immigrant categories, including H-1B, E-1, E-2, E-3, L-1 and O-1 visa holders, along with qualifying dependents in applicable cases.

Kevin J. Andrews, Principal Immigration Attorney at Kevin J. Andrews LLC, said the grace period was itself created through the regulatory process in 2016.

‘We’ve been bracing for this’

“DHS created the 60-day grace period by regulation in 2016, through notice and comment. USCIS can generally dismantle the same way if their proposal is published with a real record and a reasoned explanation for killing the grace period. And we’ve been bracing for this since the first Trump administration,” Andrews told Financial Express (Digital) exclusively.

The possible removal of the grace period also comes amid broader concerns about the direction of US immigration policy for skilled foreign workers. For workers already living and working in the US, the impact of a job loss extends beyond employment. Many have homes, financial commitments, families and children in the country.

The grace period does not create a new pathway for people to enter the United States. Instead, it provides temporary time for people already legally present in the country to make an orderly transition after losing a job.

Indian professionals could be disproportionately affected

Indian nationals remain the largest group of beneficiaries under the H-1B programme. According to official US data, 71 per cent of approved H-1B petitions in fiscal 2024 were for workers born in India.

This means any major change to the rules governing H-1B workers could have a disproportionate impact on Indian professionals and their families. The proposal to eliminate the 60-day grace period is also emerging amid other potential changes to the H-1B system.

The Trump administration has been pursuing a broader overhaul of policies affecting skilled foreign workers, including proposals that could significantly increase the cost for employers to hire workers under the H-1B programme.

Current rule remains in effect

Workers who lose their jobs are still covered by the existing rules. The current grace-period provision became effective in January 2017 as part of a broader regulation covering high-skilled immigrant and non-immigrant workers. The H-1B programme allows US companies to hire foreign professionals for specialised occupations that require specialised knowledge and skills.

After a job loss, the current 60-day window can give an H-1B worker time to secure a new sponsored position, seek another immigration classification if eligible or prepare to depart the US. The proposal to remove this protection has therefore raised concerns among immigration lawyers and foreign professionals.

What happens next?

The proposed elimination of the grace period is not yet law or an effective regulation. DHS must first publish the proposed rule and provide details of the planned changes. The proposal would then go through the public-comment process before the agency can finalise the regulation. Until then, the existing 60-day grace period remains in effect for eligible workers.

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 personalized guidance, please consult a qualified immigration attorney or a certified professional advisor.