H1B Visa News: The Donald Trump administration is seeking to scrap a provision that allows certain foreign workers to remain in the United States for up to 60 days after losing their jobs, according to a notice posted online by the US Department of Homeland Security (DHS) on Thursday.
The proposed change would have major implications for H-1B visa holders and other foreign professionals whose legal status is tied to employment. If implemented, workers covered by the rule would generally be required to leave the US as soon as their qualifying employment ends, unless they have another legal basis to stay.
At present, eligible workers on several temporary employment visas can use a 60-day grace period to look for another job or make arrangements to leave the country after their employment is terminated.
The DHS proposal would eliminate that window. The department acknowledged that the change could cause short-term difficulties for businesses, while arguing that vacant positions could instead be taken up by American workers.
The agency also pointed out that some foreign workers could potentially return to the US if a new employer submits a fresh petition on their behalf.
DHS defended the proposed rollback by arguing that the existing provision "disconnects the alien's lawful status from the very basis of eligibility" associated with employment-based visas. The department said the proposed policy would restore an earlier approach under which workers were expected to leave the US when their sponsoring employment ended.
The proposed regulation would extend beyond H-1B workers. It covers several temporary employment-related categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN visas, as well as eligible dependents.
Under the proposed framework, individuals whose qualifying employment or activity comes to an end would ordinarily have to depart the country unless another form of lawful status allows them to remain.
The affected categories serve different groups of foreign professionals. L-1 visas, for instance, are commonly used to transfer executives, managers and specialised employees within multinational companies. O-1 visas are available to individuals recognised for "extraordinary ability" in areas including science, athletics and the arts.
The proposal would also cover H-1B1 professionals from Singapore and Chile, E-3 specialty occupation workers from Australia and TN professionals covered under North American trade arrangements.
The H-1B programme, established by Congress in 1990, has become particularly important to the US technology industry. Companies use the programme to recruit specialised professionals, including workers from India and China, for positions where employers say suitably qualified domestic talent can be difficult to find.
Large consulting and technology services companies are among the major users of the programme. Deloitte, PwC and Ernst & Young, along with Tata Consultancy Services, Infosys, HCL Tech and LTIMindtree, are among the prominent H-1B sponsors.
Ending the grace period could therefore put additional pressure on employers and foreign workers dealing with sudden layoffs. Workers would have considerably less time to secure another qualifying position or arrange their departure from the country.
The proposal represents another step in the Trump administration's broader effort to tighten legal immigration routes following Donald Trump's return to the White House in January 2025.
His administration has already introduced other measures affecting skilled foreign workers, including higher visa costs and a temporary suspension of immigrant visa interviews at US diplomatic missions as officials implement a new training system.
However, the proposed elimination of the grace period is not yet final. The regulation must first be published in the Federal Register and will then be subject to a two-month public comment period before the administration can move towards implementation.
