US H-1B visa rules may tighten: Trump administration clears review of proposal to end 60-day grace period after layoffs

The US administration has finalized its review of a proposal that could eliminate the 60-day grace period granted to foreign workers, including those with H-1B visas, after losing their jobs in the United States. The Department of Homeland Security (DHS) submitted the proposal to the Office of Management and Budget (OMB) for review earlier this month, though the specifics of the regulation have not been made public yet.

If implemented, the regulation would undergo a public comment period lasting between 30 to 60 days before being published in the Federal Register. This proposed change represents a notable alteration for foreign professionals who rely on employer-sponsored visas to maintain their legal status in the US. Currently, the 60-day grace period allows H-1B visa holders who have lost their jobs to search for new employment and potentially switch employers without immediately having to leave the country.

This provision applies to various visa categories, such as H-1B, H-1B1, L-1, O-1, E-1, E-2, E-3, and TN, as well as eligible dependents. However, if the proposed regulation is finalized and the 60-day protection is removed, foreign workers may face a significantly shorter window or no automatic grace period upon employment termination.

This change could pose significant challenges for H-1B workers, as their immigration status is typically tied to their employment. With the grace period eliminated, these workers may experience difficulty finding new employers, completing the required immigration process, and maintaining legal status while remaining in the US. The proposal could disproportionately affect Indian professionals, as they constitute the largest group of H-1B visa beneficiaries, accounting for 71% of successful H-1B applicants in fiscal 2024.

The elimination of the grace period could have a particularly significant impact during periods of layoffs in sectors like technology, consulting, and financial services, where H-1B workers are heavily represented. Additionally, eligible dependents of an Indian H-1B worker who loses their job could face immediate immigration issues, including challenges related to international travel, housing, and children's schooling.

Former White House adviser Ajay Jain Bhutoria has criticized the proposal, arguing that it is both inhumane and unworkable, emphasizing that even 60 days may be insufficient for highly skilled workers who suddenly lose their jobs.