Trump administration proposes ending H-1B visa grace period after job loss

The Trump administration has proposed scrapping a 60-day grace period for certain immigrants, including skilled workers on H-1B visas, to remain in the U.S. and seek a new sponsor after losing a job, according to a government notice published online on Thursday. The rule change, presented in the Federal Register by the U.S. Department of Homeland Security (DHS), would force H-1B and other temporary work visa holders to depart the country immediately upon termination of employment.

This action could pose a significant challenge for major American tech companies that heavily depend on foreign labor. The proposed change is part of President Donald Trump's ongoing efforts to restrict legal immigration since his re-election in January 2025. The DHS also mentioned other immigration-related measures, such as raising fees for skilled workers and halting immigrant visa appointments at U.S. missions abroad while implementing a new training program.

Companies affected by the proposed rule might experience some disruption but could potentially find American workers to fill the vacant positions. The 60-day grace period, which has been in place since 2017, provides foreign workers with the necessary time to find another U.S. job or arrange their affairs, such as selling a home or withdrawing children from school, before leaving the country.

Many H-1B workers have been in the U.S. for years, and they and their families have integrated into their communities. Gabriel Chin, a professor at the UC Davis School of Law, expressed concern over the potential impact of the proposed rule, stating that there is no valid reason to force these workers to leave simply because they are changing jobs.

Visa sponsors for H-1B visas include tech giants like Deloitte, PwC, Ernst & Young, as well as outsourcing firms such as Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree. Lawyers from Berardi Immigration Law, a firm specializing in business-related immigration issues, warned that the proposed change would compress the timeline for HR teams handling layoffs and offboarding for foreign national employees.

Todd Schulte, president of FWD.us, an immigration advocacy group, emphasized that the implementation of the rule would put additional strain on companies and communities that rely on immigrant workers. The proposed rule would also affect E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 short-term work visas for executives or managers of international companies, O-1 visas for individuals with an extraordinary ability in science, sports, or the arts, TN professional workers, H-1B1 skilled worker visas from Singapore and Chile, and E-3 specialty worker visas from Australia. The rule is currently open for a two-month public comment period before it can be finalized.