US Proposes Scrapping 60-Day Grace Period for H-1B Workers After Layoffs

The Trump administration has moved to scrap a 60-day grace period that currently allows laid-off H-1B visa holders and some other temporary workers to remain in the United States while they look for a new employer, according to a notice published in the Federal Register by the Department of Homeland Security.

Under the proposal, workers on H-1B and certain other temporary work visas would be required to leave the country once their employment ends. The change would mark the latest effort by President Donald Trump to tighten legal immigration since he returned to office in January 2025, following higher visa fees for skilled workers and a recent pause on immigrant visa appointments at US missions abroad during a new training programme.

DHS acknowledged that companies affected by the change could face some disruption, but said the positions could instead be filled by American workers. In some cases, the notice added, foreign workers who depart could reapply if an employer files a petition on their behalf. "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.

The grace period, in place since 2017, gives foreign workers time to secure another US job or to wind up their affairs — such as selling a home or withdrawing children from school — before leaving. Immigration lawyers specialising in business-related matters said the proposal would sharply compress the timeline human resources teams have to manage layoffs and offboarding for foreign national employees.

H-1B visas, created by Congress in 1990, are particularly important to technology companies recruiting talent from India and China, allowing them to fill roles where qualified American workers are sometimes scarce. Major sponsors include consultancies such as Deloitte, PwC and Ernst & Young, as well as outsourcing firms including Tata Consultancy Services, Infosys, HCL Tech and LTIMindtree.

If implemented, the change would also cover E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 short-term work visas for executives or managers with international companies, O-1 visas for people with extraordinary ability in science, sports or the arts, and TN professional workers. It would further affect H-1B1 skilled worker visa holders from Singapore and Chile and E-3 specialty worker visa holders from Australia.

The rule is subject to a two-month public comment period before it can be enacted.