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