Big H-1B shock for Indians? Trump admin moves to scrap 60-day grace period, foreign workers may have to leave US after job loss

The Donald Trump administration is considering a major change to the rules for foreign workers in the US. Under the proposed plan, H-1B visa holders and some other temporary foreign workers could lose the 60-day grace period they currently get after losing their jobs, Reuters reported.

At present, eligible workers can stay in the US for up to 60 days after their employment ends. During this time, they can search for another employer, get a new sponsor or make arrangements to leave the country.

The proposed change could have a major impact on Indian technology professionals, who account for a large share of H-1B visa holders and work across the US technology and services industry.

What happens if the rule changes?

The proposal was published by the US Department of Homeland Security in the Federal Register on Thursday. If it takes effect, H-1B workers whose employment ends would generally have to leave the US instead of getting the current 60-day window to find another job.

The grace period has been available since 2017. It was introduced to give foreign workers some time to deal with the sudden loss of employment.

For many workers, those 60 days are also important for practical reasons, including finding a new home, moving families and making arrangements for children’s schooling.

Why Indian IT workers could be hit hard

Indian professionals are among the biggest groups benefiting from the H-1B programme. The visa is widely used by the US technology industry to hire highly skilled workers, particularly from India and China.

Major Indian IT companies such as Tata Consultancy Services, Infosys, HCLTech and LTIMindtree are among the companies that sponsor H-1B workers.

Large consulting firms, including Deloitte, PwC and Ernst & Young, are also major sponsors.

If the proposal becomes law, Indian professionals who lose their jobs could have much less time to find another employer willing to sponsor them.

Immigration lawyers have warned that the proposed change could put additional pressure on companies and foreign workers.

For workers, the biggest concern would be the shorter window to secure another job and complete the required immigration process.

Trump administration tightens immigration rules

The proposal is part of a wider push by the Trump administration to tighten legal immigration rules after Trump returned to the White House in January 2025.

The administration has already introduced higher visa-related fees for skilled workers. It has also paused immigrant visa appointments at US missions in several countries while rolling out a new training programme.

The latest proposal could further increase uncertainty for foreign professionals working in the US.

More visa holders could be affected

The proposed rule would not apply only to H-1B workers. It could also affect certain holders of other temporary work visas, including:

  • E-1: International traders
  • E-2: Certain commercial vehicle operators
  • L-1: Executives and managers working for international companies
  • O-1: People with extraordinary ability in areas such as science, sports and the arts
  • TN: Professional workers from Canada and Mexico
  • H-1B1: Skilled workers from Singapore and Chile
  • E-3: Specialty workers from Australia

What Happens Next?

The proposal is not yet a final rule. It will now go through a two-month public comment period. The administration will review feedback before deciding whether to introduce the change.

The Department of Homeland Security has acknowledged that companies could face some disruption if the rule is implemented. However, it argued that some of the affected jobs could instead be filled by American workers.

Under the proposal, employers could offer positions to “equally qualified U.S. workers” or use the I-129 petition process if they need to continue employing foreign workers.



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