Trump Administration Proposes Ending H-1B 60-Day Grace Period: What It Means For Indian Workers

The Donald Trump administration has proposed eliminating the 60-day grace period that allows H-1B and certain other foreign workers to remain in the US after losing their jobs while they seek new employment or arrange to leave the country. The proposal could particularly affect Indian professionals, who make up a large share of H-1B workers.

The change is not yet in effect and remains subject to public comment before a final decision.

What Is The H-1B 60-Day Grace Period?

The grace period was introduced in 2017. It allows eligible H-1B workers up to 60 days after employment ends to find another employer/sponsor, change status or prepare to leave the US. The period can also end earlier if the person's authorised stay expires. It is up to 60 days, not automatically guaranteed in every circumstance.

The 60-day grace period, introduced in 2017, gives foreign workers a window to secure another job in the US or arrange their departure. This can include handling practical matters such as selling a home or making arrangements to take their children out of school.

Created by Congress in 1990, the H-1B visa programme plays a key role for technology companies hiring skilled workers from countries such as India and China, particularly for positions where qualified US workers may be in short supply. Major H-1B sponsors include consulting firms Deloitte, PwC and Ernst & Young, along with outsourcing companies such as Tata Consultancy Services (TCS), Infosys, HCLTech and LTIMindtree, as per Reuters.

How Could The Proposed Change Affect Indian H-1B Workers?

Indian professionals are major beneficiaries of the H-1B programme. Losing the grace period would mean workers facing layoffs could have to leave the US much sooner rather than having two months to find another sponsor. It could make layoffs much more difficult for companies employing foreign workers.

Major H-1B sponsors include Indian IT companies such as TCS, Infosys, HCLTech and LTIMindtree, according to Reuters. The proposal would also affect some L-1, O-1, TN, E-1, E-2, H-1B1 and E-3 workers.

The proposed measure would also cover H-1B1 visa holders from Singapore and Chile, as well as Australians working in the US under E-3 specialty occupation visas. The proposal will go through a 60-day public comment period before the government can make it final.

The proposal will undergo a public-comment period before DHS can finalise it. If implemented, workers losing their jobs could face a much shorter window to find another route to remain in the US.

"DHS presumes that they will either offer the same jobs to equally qualified U.S. workers or go through the I-129 petition process depending on their workforce requirement," the notice said.

Lawyers at Berardi Immigration Law, a firm specialising in business immigration, told Reuters that the proposed change would “sharply compress the timeline” available to HR teams to handle layoffs and the offboarding of foreign national employees.