Daijiworld Media Network – Washington
Washington, Sep 11: The United States has proposed eliminating the discretionary 60-day grace period currently available to certain foreign workers, including H-1B visa holders, after they lose their jobs.
The proposed rule could have a significant impact on skilled foreign workers, particularly Indian technology professionals employed by US companies under the H-1B programme.
The H-1B visa allows US companies to employ foreign workers in specialised occupations requiring theoretical or technical expertise. Technology companies rely heavily on the programme to recruit thousands of skilled workers from countries including India and China.
Under the existing rules, eligible foreign workers whose employment ends can remain in the United States for up to 60 days to seek new employment, change their immigration status or prepare for departure.
The Department of Homeland Security (DHS) has proposed scrapping this provision through a rule titled 'Eliminating the Discretionary 60-day Grace Period'. The proposal will be published in the Federal Register, following which the public will have 60 days to submit comments.
If finalised, foreign workers who lose their jobs before their visas expire would generally have to leave the United States unless they have separate authorisation to remain.
The proposed rule would eliminate the discretionary grace period for E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN non-immigrants, as well as their dependents, whose employment ends.
The 60-day grace period was introduced in 2016 during the Obama administration to provide greater job portability, stability and flexibility for highly skilled foreign workers. It allowed eligible workers to seek new employment in the same visa category, change their status or make arrangements to leave the country.
The grace period currently applies whether the employment ends voluntarily or involuntarily.
According to DHS estimates, 65,752 primary beneficiaries experienced employment cessation or voluntarily changed employers in 2025. The figure was 80,034 in fiscal year 2023 and 40,959 in fiscal year 2021.
Between fiscal years 2021 and 2025, only 5.77 per cent of the 328,758 primary beneficiaries who either lost employment or changed employers had a new petition filed on their behalf by another employer.
If the proposal is implemented, workers who lose their jobs may have to leave the United States and apply for a new visa at a US embassy or consulate after securing employment with another American employer.
The US currently permits 65,000 H-1B visas annually, with an additional 20,000 reserved for foreign nationals holding advanced degrees from US higher education institutions.
The proposed change is the latest immigration-related move by President Donald Trump’s administration as it seeks to tighten rules governing legal migration.