Trump administration proposes ending 60-day H-1B grace period after job loss, TechGig

The Trump administration has proposed ending a 60-day grace period that allows H-1B visa holders and other temporary skilled workers to remain in the United States to find a new sponsor after losing their jobs. This rule change, published by the U.S. Department of Homeland Security (DHS) in the Federal Register, would mandate that these workers leave the country as soon as their employment ends.The current grace period, in effect since 2017, provides foreign workers time to organise their affairs, such as selling a home or managing children’s schooling, before departing the country.

Impact on Tech Companies and Indian Talent

The proposed change could significantly affect top American tech companies that heavily rely on foreign skilled workers, particularly from India and China, to fill roles where qualified U.S. workers may be scarce. Consultancy firms like Deloitte, PwC, and Ernst & Young, along with outsourcing giants such as Tata Consultancy Services (TCS), Infosys, HCL Tech, and LTIMindtree, are among the top H-1B sponsors who would be impacted.

Lawyers specialising in business immigration issues noted that this move would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees.”

The DHS presumes that companies will either offer these jobs to equally qualified U.S. workers or go through the I-129 petition process for immigrant workers depending on their workforce requirements.

This is the latest step by U.S. President Donald Trump to limit legal migration since returning to office, following earlier measures like higher visa fees for skilled workers and pausing immigrant visa appointments globally for a new training program.

The proposed rule would also apply to E-1, E-2, L-1, O-1, TN, H-1B1 (from Singapore and Chile), and E-3 (from Australia) visa holders. The rule is currently subject to a two-month public comment period before it can be enacted into law.