US Proposes Scrapping 60-Day H-1B Grace Period After Job Loss

WASHINGTON, Sept 11: The US Government has proposed eliminating the discretionary 60-day grace period currently available to certain foreign workers, including H-1B visa holders, after they lose their jobs, a move that could significantly affect thousands of skilled Indian technology workers.

The Department of Homeland Security (DHS) said the proposed rule, titled “Eliminating the Discretionary 60-day Grace Period,” would end the maximum 60-day period currently available to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN nonimmigrants and their dependents following cessation of employment.

The proposal is scheduled to be published in the Federal Register on Friday, with DHS inviting public comments for 60 days.

If finalised, foreign workers who lose employment before their visa expires would generally have to leave the United States unless they have separate authorisation to remain. Workers finding a new US employer could be required to depart and reapply for admission through a US embassy or consulate.

DHS said the proposal would restore a direct relationship between a nonimmigrant’s status and the employment or activity that formed the basis for admission, while reducing administrative burdens.

The 60-day grace period was introduced in 2016 to improve job portability and provide greater flexibility to highly skilled foreign workers, allowing them to seek new employment, change status or prepare for departure without immediately leaving the US. It applies whether employment ends voluntarily or involuntarily.

DHS estimates that 65,752 primary beneficiaries experienced employment cessation or voluntarily changed employers in 2025, compared with a peak of 80,034 in fiscal 2023.

The US currently allows 65,000 H-1B visas annually, with an additional 20,000 reserved for foreign nationals holding advanced degrees from US higher education institutions.

The proposal is the latest immigration measure under President Donald Trump aimed at tightening legal migration. (Agencies)