Trump administration moves to end H-1B grace period

The Trump administration has proposed scrapping the 60-day grace period currently available to certain foreign workers in the United States after they lose their jobs.

Under the proposed rule, H-1B visa holders and workers on several other temporary employment visas could be required to leave the country once their employment ends, potentially creating difficulties for skilled foreign workers and US companies that depend on international talent.

The proposal was published in the Federal Register by the US Department of Homeland Security (DHS) on Thursday. If approved, it would remove a policy introduced in 2017 that gives eligible foreign workers up to 60 days to secure new employment, find another visa sponsor or make arrangements to depart the United States.

The administration argued that ending the grace period could encourage companies to offer positions to qualified American workers. DHS acknowledged that the change could cause some disruption for businesses but said employers could either hire US workers or submit a new petition for foreign employees when necessary.

The existing 60-day window has been particularly important for H-1B workers because it gives them time to search for another job and transfer their visa sponsorship. It also allows affected employees to handle personal matters, including housing, schooling and other arrangements, before leaving the country.

H-1B visas are widely used by technology and other specialised industries to recruit highly skilled professionals, particularly in fields where companies say qualified US workers may not be readily available. Workers from countries such as India and China make up a significant share of H-1B recipients.

Major technology, consulting and outsourcing companies are among the leading sponsors of H-1B workers. The proposed change could therefore force employers to make faster decisions when conducting layoffs involving foreign employees.

Immigration lawyers have warned that eliminating the grace period would place additional pressure on companies’ human resources departments. Employers would have considerably less time to manage layoffs, immigration paperwork and the departure of affected workers.

The proposal would not be limited to H-1B visa holders. It would also cover several other categories of temporary workers, including E-1 international traders, E-2 workers in certain commercial transportation roles, L-1 executives and managers, O-1 individuals with extraordinary abilities and TN professional workers.

H-1B1 visa holders from Singapore and Chile and E-3 specialty occupation workers from Australia would also be affected.

The proposal is part of the Trump administration’s broader efforts to tighten US immigration policies. Since President Donald Trump returned to office in January 2025, his administration has pursued several measures aimed at restricting both legal and illegal immigration.