Trump administration proposes waiving grace period for H-1B holders after job loss

The Trump administration has proposed removing the 60-day grace period for certain immigrants, including those on H-1B visas, to remain in the United States and seek new employment after losing a job, according to a government notice posted online on Thursday. This proposed rule change, published in the Federal Register by the US Department of Homeland Security (DHS), would require H-1B and other temporary work visa holders to leave the country immediately upon the end of their employment.

This decision, which aligns with President Donald Trump's efforts to restrict legal immigration since his inauguration in January 2025, could disrupt top American tech companies that heavily rely on foreign workers. DHS predicts that some companies may face disruption, but it asserts that US jobs could be offered to equally qualified American workers instead.

During this grace period, foreign workers typically use the time to find another US job or settle affairs, such as selling a home or removing children from school before departing. H-1B visas, instituted by Congress in 1990, are particularly crucial for tech firms seeking talent from India and China, as they enable them to hire individuals where US talent is often scarce.

Notable H-1B employers include consulting firms like Deloitte, PwC, and Ernst & Young, as well as outsourcing companies such as Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree. If the proposed rule is enacted, it would also apply to E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 short-term work visas for executives or managers with international companies, O-1 visas for individuals with extraordinary abilities in science, sports, or the arts, TN professional worker visas from Canada and Mexico, H-1B1 skilled worker visas from Singapore and Chile, and E-3 speciality worker visas from Australia. The rule is currently under a two-month comment period before it can become official.