US Reviews Ending 60-Day H-1B Grace Period After Job Loss, Indians May Be Hit

New Delhi: The United States is reviewing a proposal that could eliminate the 60-day grace period currently available to certain foreign workers, including H-1B visa holders, after they lose their jobs.

The proposal, being advanced by the Department of Homeland Security (DHS), is currently under review by the White House Office of Management and Budget (OMB). It has not yet become law, and details of the proposed changes are not fully public.

If finalised, the proposed regulation would remove the existing window that allows certain non-immigrant workers and their dependants to remain in the US for up to 60 days after the principal worker's employment ends before the authorised period of stay expires.

What Happens If the 60-Day Window Is Removed?

Under the current rules, introduced in 2017, eligible foreign workers can generally remain in the US for up to 60 days after losing employment, or until their authorised stay expires, whichever comes first.

The period gives workers time to search for another employer, secure sponsorship, change immigration status where eligible, or make arrangements to leave the country.

If the proposal takes effect, workers whose employment ends prematurely could generally be required to leave the US immediately unless they secure another lawful immigration option. They could also lose the ability to change employers or immigration status from within the US unless US Citizenship and Immigration Services (USCIS) exercises discretion to excuse the lapse in status.

H-1B Workers Among Those Affected

The proposed rollback would not be limited to H-1B visa holders. It could also affect certain workers holding E-1, E-2, E-3, H-1B1, L-1, O-1 and TN non-immigrant visas, along with their dependants.

For H-1B professionals, the change could make job losses particularly consequential because finding a new employer often involves securing a company willing to sponsor the worker and initiating the required immigration paperwork.

The existing 60-day provision was introduced to provide greater flexibility to highly skilled foreign workers facing unexpected employment termination. DHS has previously acknowledged that grace periods can give workers time to respond to sudden employment changes, seek new jobs or organise their departure.

Why Indians Could Be Among the Biggest Hit

The proposal could have a significant impact on Indian professionals in the US, who make up the largest share of H-1B beneficiaries.

According to USCIS data, Indian-born beneficiaries accounted for 71% of approved H-1B petitions in fiscal year 2024. More than 5.2 million people of Indian origin live in the United States.

For Indian H-1B workers who have built careers and families in the US, losing the 60-day cushion could turn a job loss into an immediate immigration crisis.

Proposal Still Under Review

The DHS proposal, identified as RIN 1615-AD22, was sent to the White House Office of Information and Regulatory Affairs for review. It is currently only a proposal and has not taken effect.

Any final regulatory change would have to go through the federal rulemaking process before it could become effective. Until then, the existing 60-day grace period remains in place for eligible workers.

The potential move comes amid the Trump administration's broader push to tighten US immigration policies, including increased scrutiny and restrictions affecting foreign workers.