H-1B 60-day grace period: Trump admin clears plan to scrap job-loss window

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H-1B 60-day grace period: Trump admin clears plan to scrap job-loss window

Synopsis

The Trump administration has quietly cleared a DHS proposal to eliminate the 60-day grace period that H-1B workers rely on after losing their jobs — a protection that has existed since 2017. With Indian nationals making up the largest share of H-1B holders, the move could force thousands of skilled professionals and their families to leave the US virtually overnight if finalised.

Key Takeaways

The Trump administration completed its White House review of a DHS proposal to eliminate the H-1B 60-day grace period on 27 August .
The review outcome — 'Consistent with Change' — means the proposal cleared OIRA with modifications; the full text has not yet been published.
The existing 60-day grace period , in place since January 2017 , covers H-1B, L-1, O-1 and other temporary work visa holders.
Indian nationals , the largest group of H-1B beneficiaries, face disproportionate impact if the rule is finalised.
Former White House adviser Ajay Jain Bhutoria condemned the proposal and called for public comments once the rule opens in the Federal Register .
In 2023 , Bhutoria had secured unanimous advisory commission support to extend the grace period to 180 days — the opposite of the current proposal's direction.

The Trump administration has completed its White House review of a Department of Homeland Security (DHS) proposal to eliminate the discretionary 60-day grace period granted to H-1B and other foreign professionals following job loss — a move that could leave thousands of Indian workers and their families with no buffer time to secure new employment or arrange their departure from the United States.

The proposal, formally titled 'Eliminating the Discretionary 60-day Grace Period' and carrying Regulatory Information Number 1615-AD22, was submitted to the White House Office of Information and Regulatory Affairs (OIRA) on 6 August. The review concluded on 27 August with the action listed as 'Consistent with Change' — meaning the proposal cleared the White House process with modifications. The full text of the revised proposal has not yet been published, and the existing grace period therefore remains in force.

What the Current Rule Provides

Under regulations that took effect in January 2017, eligible workers on H-1B, L-1, O-1 and several other temporary employment visas may receive up to 60 consecutive days after their employment ends — or until their authorised stay expires, whichever comes first. The window is granted once per authorised validity period, and immigration authorities retain the discretion to shorten or deny it on a case-by-case basis.

The grace period serves a practical function: it gives displaced workers time to find a new sponsoring employer, apply for a change of immigration status, or make arrangements to leave the country. In its absence, a worker whose employment ends would theoretically have no legal buffer to remain in the US.

What Happens Next

The proposal's next step under standard regulatory procedure would be publication in the Federal Register, followed by a mandatory public comment period. US Citizenship and Immigration Services (USCIS), which is developing the rule, would then be required to review all comments before issuing a final rule. The regulatory record classifies the proposal as not economically significant and notes it carries no legal deadline, meaning the timeline for finalisation remains open-ended.

Impact on Indian Professionals

Indian nationals constitute the largest single group of H-1B beneficiaries and would face disproportionate exposure if the proposal advances. The H-1B programme allows US employers to hire foreign professionals for specialised roles requiring advanced expertise, and technology companies are among its heaviest users — sectors where Indian workers are heavily represented.

Critics warn that the practical consequences of eliminating the grace period would be severe. Recruitment in technology, healthcare, and engineering typically involves multiple interview rounds and subsequent visa transfer paperwork, processes that routinely take weeks or months to complete.

Voices Against the Proposal

Ajay Jain Bhutoria, a former member of the President's Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders, strongly criticised the proposed change. '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 would not have adequate time to manage housing, children's schooling, and other personal obligations following an unexpected termination. Bhutoria noted that in March 2023, he had secured unanimous support from the White House advisory commission for a recommendation to extend the grace period from 60 days to 180 days — the opposite direction from the current proposal.

'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 US to mobilise and submit public comments against this regulation as soon as it opens in the Federal Register,' he added.

With the rule yet to be formally published, immigrant advocacy groups and industry bodies are expected to mount a coordinated response once the public comment window opens.

Point of View

High-skilled immigration. The proposal's lack of an economic-significance designation is also notable: it allows the rule to move faster and with less scrutiny, even as its real-world consequences for Indian tech workers and their families are anything but trivial. The public comment period, once opened, will be the only formal check before a final rule — and advocacy groups will need to mobilise quickly.
NationPress
29 Aug 2026

Frequently Asked Questions

What is the H-1B 60-day grace period and why does it matter?
The H-1B 60-day grace period is a regulatory protection, in place since January 2017, that gives foreign professionals on H-1B, L-1, O-1 and other work visas up to 60 days after job loss to find a new employer, change their immigration status, or arrange to leave the US. Without it, a worker whose employment ends would have no legal buffer to remain in the country.
Has the Trump administration finalised the elimination of the grace period?
No. The White House Office of Information and Regulatory Affairs completed its review on 27 August with a 'Consistent with Change' designation, but the proposal has not yet been published. The existing 60-day grace period remains in force until a final rule is issued after a public comment period.
Who is most affected by this proposed change?
Indian nationals, who make up the largest share of H-1B visa holders, would be disproportionately affected. Technology, healthcare, and engineering professionals — sectors where Indian workers are heavily represented — rely on the grace period to navigate multi-stage hiring and visa transfer processes that can take months.
What can affected workers and advocates do now?
Once the proposed rule is published in the Federal Register, a mandatory public comment period will open. Former White House adviser Ajay Jain Bhutoria has urged community organisations and business leaders to submit comments against the regulation during that window. No comment period has opened yet.
What was the earlier recommendation on the grace period?
In March 2023, Ajay Jain Bhutoria secured unanimous support from the President's Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders for a recommendation to extend the grace period from 60 days to 180 days — directly contrary to the current DHS proposal to eliminate it entirely.
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