US clears plan to scrap H-1B job-loss grace period

The Trump administration has completed its review of a proposal to eliminate the 60-day grace period available to H-1B and other foreign workers after job loss. The existing protection remains in force until the proposed rule completes the regulatory process.

Washington: The Trump administration has completed its review of a proposal to eliminate the discretionary 60-day grace period available to H-1B and other foreign professionals after their employment ends, potentially affecting thousands of Indian workers and their families.

The Department of Homeland Security proposal, titled “Eliminating the Discretionary 60-day Grace Period”, was submitted to the White House Office of Information and Regulatory Affairs on August 6.

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The review concluded on August 27 with the action listed as “Consistent with Change”, according to the official regulatory record. The designation means the proposal cleared the White House review process with changes.

The proposal has not been published, and its full provisions remain unavailable. The existing 60-day protection therefore remains in force.

The next step would ordinarily be publication of the proposed rule in the Federal Register, followed by a public comment period. DHS would then have to consider the comments and issue a final rule before any change could take effect.

The proposal carries Regulatory Information Number 1615-AD22 and is being developed by US Citizenship and Immigration Services. The regulatory record describes it as a proposed rule that is not economically significant and has no legal deadline.

Under the current regulation, eligible workers may receive up to 60 consecutive days after their employment ends, or until the expiration of their authorised stay, whichever period is shorter.

The window allows affected workers to find another employer willing to sponsor them, seek a change of immigration status or prepare to leave the United States. It covers people holding H-1B, L-1, O-1 and several other temporary employment visas.

Indian nationals, who constitute the largest group of H-1B beneficiaries, could face particular uncertainty if the administration proceeds with the proposal.

Ajay Jain Bhutoria, a former member of the President’s Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders, condemned the proposed change and called for the existing grace period to be extended rather than eliminated.

“I strongly condemn and slam this proposed DHS policy. Eliminating the 60-day grace period is both inhumane and unworkable. When a high-skilled worker faces a sudden termination, 60 days was already dangerously short. Stripping away this protection entirely leaves thousands of law-abiding individuals with zero time to wrap up their lives,” Bhutoria said.

He warned that affected families may not have sufficient time to manage their homes, children’s education and other personal matters after an unexpected termination.

Bhutoria said he had secured unanimous support from the White House advisory commission in 2023 for a recommendation to extend the grace period from 60 days to 180 days.

He argued that recruitment in technology, healthcare and engineering frequently involves several interviews, followed by immigration paperwork required to transfer a worker’s status to a new employer.

“Eliminating the 60-day grace period for retrenched H-1B workers is a drastic step backward. When I presented my recommendation to the White House AANHPI Commission in March 2023 to extend the window to 180 days, it was grounded in the reality of corporate hiring, where multi-stage interview cycles and visa transfer paperwork take months to complete,” Bhutoria said.

“Removing this window entirely will force skilled Indian professionals and their families out of the country overnight. I call on community organisations and business leaders across the U.S. to mobilise and submit public comments against this regulation as soon as it opens in the Federal Register,” he added.

The 60-day provision became effective in January 2017 as part of a broader regulation covering high-skilled immigrant and non-immigrant workers. It permits the grace period once during each authorised validity period but allows immigration authorities to shorten or deny it as a matter of discretion.

The H-1B programme permits American employers to hire foreign professionals for specialised occupations requiring advanced knowledge. Technology companies are among its largest users, and Indian nationals have consistently accounted for a substantial majority of approved H-1B beneficiaries.