Trump administration proposes axing grace period for H-1B visa holders after job loss
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 on Thursday.
Under the planned rule change, published in the Federal Register by the U.S. 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 U.S. President Donald Trump to limit legal immigration 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 U.S. missions globally while it implements a new training program.
Companies affected 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 U.S. 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 U.S. job or get their affairs in order, whether selling a home or pulling children out of school, before leaving the country.
"Many H-1B workers have been here for years, and they and their families have established themselves in their communities," said Gabriel Chin, a professor at the UC Davis School of Law. "I see no legitimate reason to force them to leave because they are changing jobs."
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 U.S. workers.
Consultancy companies such as Deloitte, PwC and Ernst & Young as well as outsourcing firms such as 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."
"It seems like every week this administration announces a new step to make life more difficult for immigrants in the U.S. and the companies and communities that rely on them," said Todd Schulte, president of FWD.us, an immigration advocacy group.
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 would also affect 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 finalized.
(Reporting by Susan Heavey; Additional reporting by Kristina Cooke and Anzar Mehraj; Editing by Jesse Mesner-Hage, Andrea Ricci, Rod Nickel)
