The Donald Trump administration has proposed scrapping the 60-day grace period that currently allows certain foreign workers, including skilled professionals on H-1B visas, to remain in the US and search for a new sponsor after losing their jobs, Reuters reported.
The proposed change could significantly affect Indian technology professionals, who account for a large proportion of H-1B visa holders and work extensively across the US technology and services industry.
According to the proposal published by the US Department of Homeland Security in the Federal Register on Thursday, H-1B and some other temporary work visa holders would have to leave the US once their employment ends, instead of receiving up to 60 days to find another job or make arrangements to depart.
Introduced in 2017, the 60-day grace period gives foreign workers time to secure a new US employer willing to sponsor them or prepare to leave the country. It also allows them to handle practical issues such as finding housing and making arrangements for their children’s education.
INDIAN TECH PROFESSIONALS AMONG THE MOST AFFECTED
H-1B visas play a crucial role in the US technology sector, which depends heavily on skilled professionals from countries such as India and China.
Indian IT companies including Tata Consultancy Services, Infosys, HCLTech and LTIMindtree are among the major H-1B sponsors. Consulting companies such as Deloitte, PwC and Ernst & Young are also prominent sponsors.
For Indian professionals employed in the US, the proposed rule could substantially shorten the period available to find a new employer following a layoff.
Lawyers at Berardi Immigration Law said the proposal would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees”.
TRUMP ADMINISTRATION MOVES TO RESTRICT LEGAL MIGRATION
The proposal represents the latest step by the Trump administration to tighten legal immigration rules since Trump returned to the White House in January 2025.
The administration has raised visa fees for skilled workers and recently suspended immigrant visa appointments at US missions globally while introducing a new training programme.
The Department of Homeland Security recognised that implementing the proposed change could cause some disruption for companies, but argued that the affected positions could instead be filled by American workers.
Under the proposal, employers would either be required to offer positions to “equally qualified U.S. workers” or use the I-129 petition process when they need to continue employing foreign workers.
OTHER VISA CATEGORIES MAY ALSO BE IMPACTED
The proposed rule would extend beyond H-1B visa holders.
It would also apply to certain E-1 international traders, E-2 commercial vehicle operators, L-1 executives and managers employed by multinational companies, O-1 visa holders with extraordinary abilities in areas such as science, sports and the arts, and TN professional workers.
H-1B1 skilled professionals from Singapore and Chile, along with E-3 specialty workers from Australia, could also come under the proposed changes.
The proposal will now undergo a two-month public comment period, after which the administration can decide whether to proceed with implementing the rule.
