The Trump administration is reportedly considering scrapping the 60-day grace period that currently allows laid-off H-1B, L-1, and O-1 visa holders to find new employment or adjust their immigration status while remaining lawfully in the United States. The proposed regulation, identified as RIN 1615-AD22, is under review by the federal Office of Management and Budget (OMB), according to material shared by an Indian-American community leader.

What the Proposed Rule Would Change

Under the current framework, non-immigrant visa holders whose employment is terminated are granted up to 60 days to secure a new job offer, transfer their visa status, or obtain another lawful non-immigrant classification. The proposed Department of Homeland Security (DHS) regulation, if enacted, would eliminate this window entirely — leaving affected workers with no buffer period upon losing their jobs.

The rule has not yet been formally published in the Federal Register, meaning the public comment period has not begun. It remains under regulatory review and has not taken effect.

Who Would Be Affected

Indian nationals stand to bear the sharpest impact. They have historically received the largest proportion of H-1B visas issued by the United States, particularly in technology, engineering, and healthcare sectors. A sudden removal of the grace period would leave thousands of workers — along with their spouses and dependent children — with no legal transition time following an unexpected job loss.

This comes amid a broader tightening of immigration enforcement under the current administration, with several visa-related policy reviews already under way across federal agencies.

Community Leader Condemns the Proposal

Ajay Bhutoria, a former member of the President's Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders (AANHPI), has urged the administration to withdraw the proposal immediately.

'I strongly condemn and slam this proposed DHS policy,' Bhutoria said. 'Eliminating the 60-day grace period is inhumane and unworkable. When a 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 warned that the consequences would extend well beyond the individual worker. 'People will not even have time to sell their homes, manage their leases, or transition their children out of schools,' he said. 'Families will be uprooted overnight, thrown into chaos through no fault of their own after dedicating years of hard work and tax contributions to this country.'

The Case for a 180-Day Extension

Bhutoria argued that the hiring process for specialised roles — particularly in technology and engineering — routinely involves four to five rounds of interviews, background checks, and extensive US Citizenship and Immigration Services (USCIS) paperwork that cannot be compressed into a rigid short window.

'When I served on the President's AANHPI Commission, I specifically authored and pushed a recommendation to extend the grace period to 180 days precisely because the hiring process for specialized technology and engineering roles involves four to five rounds of interviews, background checks, and extensive USCIS paperwork that cannot be squeezed into a rigid window, let alone done overnight,' he said.

He described the measure as a threat to both immigrant families and the competitive capacity of American companies to retain highly skilled workers, calling on South Asian organisations, business leaders, and advocacy groups to prepare public comments if the proposal is formally published.

What Happens Next

The proposal must be formally published in the Federal Register before it can invite public comment or move toward implementation. Industry groups and immigration advocates are expected to mount opposition if and when that publication occurs. The outcome of the OMB review will determine whether the rule advances to that stage.