H-1B holders’ 60-day grace period may be ended by Trump
The Trump administration has put forth a proposal to abolish a 60-day grace period that currently permits specific immigrants, such as skilled workers on H-1B visas, to remain in the United States and seek a new sponsor following job loss, as indicated by a government notice released online Thursday. Under the proposed regulatory amendment, as detailed in the Federal Register by the U.S. Department of Homeland Security, individuals holding H-1B and specific other temporary work visas would be required to exit the country immediately upon the termination of their employment. This could pose a significant challenge to leading American technology firms that depend extensively on foreign labour. It represents the most recent action taken by U.S. President Donald Trump to restrict legal migration following his return to office in January 2025.
His administration has also implemented increased visa fees for skilled workers and has recently suspended immigrant visa appointments at U.S. missions globally as it rolls out a new training program. Companies affected by the change could experience some disruption, as noted in the proposal by DHS, which also indicated that the jobs could be allocated to American workers instead. In certain circumstances, it is possible for immigrant workers who depart to reapply, contingent upon their employer submitting a petition on their behalf, it noted. “DHS presumes that they will either offer the same jobs to equally qualified U.S. workers or go through the I-129 petition process depending on their workforce requirement,” the notice said. The 60-day grace period, established in 2017, provides foreign workers with the opportunity to secure alternative employment in the U.S. or to manage their personal affairs-such as selling a home or withdrawing children from school-prior to their departure from the country.
H-1B visas, established by Congress in 1990, play a vital role for tech companies in their pursuit of talent from India and China, enabling them to occupy positions where there is often a shortage of qualified U.S. workers. Consultancy firms including Deloitte, PwC, and Ernst & Young, along with outsourcing leaders such as Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree, rank among the foremost sponsors of H-1B visas. Attorneys representing Berardi Immigration Law, an entity focused on business-related immigration matters, indicated that the action would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees.”
If implemented, the change would also apply to E-1 international trader visa holders; E-2 commercial vehicle operator visa holders; L-1 short-term work for executives or managers with international companies; O-1 visas for people “with an extraordinary ability” in science, sports or the arts; and TN professional workers. It would also affect H-1B1 skilled worker visa holders from Singapore and Chile, as well as E-3 speciality worker visa holders from Australia. The rule is subject to a two-month public comment period prior to its enactment into law.
