The Donald Trump administration has proposed eliminating the 60-day grace period that allows certain foreign workers in the US to remain in the country
after losing their jobs, a move that could have a significant impact on Indian professionals working in the country. The US Department of Homeland Security (DHS) has proposed ending the grace period for H-1B and several other employment-based non-immigrant visa holders. Under the current rules, eligible workers can generally remain in the US for up to 60 days after their employment ends, giving them time to find a new employer, pursue another immigration option or prepare to leave the country. The proposed change would sharply reduce the window available to workers who lose their jobs. Reuters reported that, under the proposal, affected workers would have to leave the US immediately following termination of employment unless they establish another legal basis to remain in the country. The proposal is not yet final and will go through a public comment process. Which visa holders could be affected? The proposed change goes beyond H-1B workers. According to Reuters, it would also cover several other employment-based non-immigrant categories, including L-1, O-1, E-1, E-2, TN, H-1B1 and E-3 visa holders. The existing 60-day grace period was established through DHS regulations and is codified at 8 CFR 214.1(l)(2). USCIS has previously confirmed that the provision gives eligible non-immigrant workers time to find new employment or pursue other immigration options after termination. The current system can also allow a worker to remain beyond the initial 60 days in certain circumstances if they take steps such as filing for a change of status or becoming the beneficiary of a qualifying new petition. Why the proposal matters for Indians The proposed rule could be particularly significant for Indian professionals because Indian nationals make up a large share of workers benefiting from the US H-1B system. H-1B visas are widely used by US technology companies and other businesses to employ highly skilled foreign professionals. Indian workers have historically accounted for a substantial proportion of H-1B beneficiaries, making changes to the programme particularly consequential for India's technology workforce and the large Indian diaspora in the US. For an Indian professional laid off while holding H-1B status, the existing 60-day window can be crucial. It provides time to secure another sponsoring employer and complete the necessary immigration process rather than having to leave the US immediately after losing a job. The proposed change could therefore put greater pressure on Indian workers facing layoffs, particularly those working in sectors such as technology, consulting and engineering. What happens after a job loss? Under the existing framework, a worker who loses employment may have several options during the grace period. USCIS has previously said that affected workers may seek new employment, apply for a change of status or pursue other available immigration routes. If no qualifying action is taken, the worker and dependants may have to leave the US when the grace period or authorised stay expires. The proposed DHS rule would fundamentally change that cushion by removing the 60-day period following employment termination. For employers, the change could also create tighter deadlines when terminating foreign workers. Companies would need to move quickly if they wanted to retain an employee through a new petition or other lawful immigration arrangement. Part of broader Trump immigration crackdown The proposal comes amid a wider tightening of US immigration policy under the Trump administration. The administration has introduced or proposed several measures affecting employment-based immigration, including changes to H-1B-related fees and requirements. Reuters reported that the latest proposal is intended to reduce the existing flexibility for foreign workers while the administration argues that changes could open more employment opportunities for US workers. For Indian workers, the latest move adds another layer of uncertainty to an already closely watched US immigration system. However, the 60-day grace period has not been scrapped yet. The DHS measure is a proposal and must go through the federal rulemaking process before any final change takes effect.
