Trump administration proposes waiving grace period for H-1B holders after job loss
WASHINGTON: 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 Thursday.
On Thursday, the Trump administration unveiled a proposal to abolish a 60-day grace period for specific immigrants, such as H-1B visa holders, upon job loss, according to an online government notice. This move, set to be published in the Federal Register by the US Department of Homeland Security, would compel these individuals to depart the country immediately upon termination of employment.
The potential impact of this rule alteration could be significant for prominent American tech firms that heavily rely on foreign labor. The administration, led by President Donald Trump, has been actively tightening immigration policies since taking office in January 2025. The DHS's proposal also includes an increase in visa fees for skilled workers and a pause in immigrant visa appointments at US missions worldwide, while implementing a new training program.
Companies affected by this change might face temporary disruptions, but the Department claims the jobs could be filled by American workers instead. During the 60-day grace period, currently in effect since 2017, foreign workers have been granted time to secure another US job or arrange their affairs, including selling property or withdrawing children from school.
The H-1B visa, approved by Congress in 1990, is crucial for tech companies seeking talent from India and China, as it allows them to fill positions where qualified US workers are scarce. Consultant firms like Deloitte, PwC, and Ernst & Young, as well as global outsourcing giants like Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree, are major H-1B sponsors.
It is anticipated that the decision to implement this change would impact E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 short-term work visas for executives or managers in international companies, O-1 visas for individuals with extraordinary abilities in science, sports, or the arts, TN professional workers, H-1B1 skilled workers from Singapore and Chile, and E-3 specialty workers from Australia. The proposal is subject to a two-month public comment period before it can become law.
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