Trump Admin Moves Closer To Scrapping H-1B 60-Day Grace Period: What Indians Should Know

A Trump administration proposal to eliminate the 60-day grace period available to certain foreign workers after they lose their jobs has cleared a key White House regulatory review, moving the measure closer to public release.

The Department of Homeland Security (DHS) proposal was approved by the Office of Information and Regulatory Affairs (OIRA) on Thursday, according to Bloomberg Law. The move is significant for H-1B workers, particularly Indians, who account for the largest share of beneficiaries under the US skilled-worker visa programme.

The proposal has not taken effect yet, and the existing 60-day grace period remains in place. Its precise scope will become clearer once DHS publishes the proposed rule and opens it to public scrutiny.

What

Is The 60-Day Grace Period?

Under rules introduced in 2017, certain non-immigrant workers whose employment ends can generally remain in the United States for up to 60 consecutive days or until the end of their authorised stay, whichever comes first.

For H-1B workers, that period can provide time to find another employer willing to sponsor them, seek a change of immigration status or make arrangements to leave the country.

The provision also applies to several other categories, including E-1, E-2, E-3, H-1B1, L-1, O-1 and TN visa holders, as well as their dependants.

The 60-day period is not automatic in every case. DHS already has discretion over its application, and a worker whose authorised stay expires sooner would not receive the full two months.

What Has The Trump Administration Proposed?

The DHS measure seeks to eliminate the discretionary 60-day post-employment grace period.

According to Bloomberg Law, the proposal has now cleared White House regulatory review; however, the full text has not yet been published. That means details such as which workers would be covered, whether any exceptions would be available and what alternative arrangements, if any, DHS plans to provide are not yet known.

If the proposal is ultimately finalised without a comparable buffer, workers who unexpectedly lose their jobs could have substantially less time to secure another qualifying position or pursue another immigration option.

Affected workers could also have less room to change employers or immigration status from within the US after losing a job, unless US Citizenship and Immigration Services exercises discretion in an individual case.

Why Indian H-1B Workers Are Watching Closely

The potential change is particularly important for Indian professionals because they make up a dominant share of H-1B beneficiaries. Indian nationals accounted for 71 per cent of approved H-1B petitions in fiscal year 2024, according to India Today.

Former Biden Adviser Calls Proposal ‘Inhumane’

Former White House adviser Ajay Jain Bhutoria has criticised the proposal and argued that the existing 60-day period should instead be extended.

“Eliminating the 60-day grace period is both inhumane and unworkable,” Bhutoria said.

Bhutoria, who served as an adviser to former President Joe Biden, has called for the grace period to be extended to 180 days, arguing that workers and their families need sufficient time to find new employment and deal with housing, schooling and other personal arrangements after an unexpected termination.

What Happens Next?

Once the proposed rule is published, stakeholders will get an opportunity to submit comments before DHS decides whether and how to proceed with a final regulation.

The agency would then have to consider the feedback before issuing a final rule. Only after that process, and once an effective date is specified, could the existing framework formally change.