By Susan Heavey
WASHINGTON, Sept 10 (Reuters) – The Trump administration has proposed eliminating the 60-day grace period that permits certain immigrants, including H-1B visa holders, to remain in the U.S. and secure new sponsorship after job loss, according to a government notice published Thursday.
Under the planned rule change, published in the Federal Register by the Department of Homeland Security, individuals holding H-1B and specific other temporary work visas must depart the country immediately upon employment termination. This could significantly impact major American tech firms that depend heavily on foreign talent.
This marks the latest effort by President Donald Trump to restrict legal immigration since his return to office in January 2025. His administration has also raised visa fees for skilled workers and recently suspended immigrant visa appointments at U.S. missions globally to implement a new training program.
While companies affected by the change may face operational disruptions, DHS noted that the positions could be filled by American workers instead. The proposal also states that departing immigrant workers might reapply if their employer petitions on their behalf.
“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 stated.
The 60-day grace period, established in 2017, provides foreign workers time to find another U.S. job or settle personal matters—such as selling a home or withdrawing children from school—before departing the country.
H-1B visas, created by Congress in 1990, are vital for tech companies seeking skilled talent from India and China, enabling them to fill roles where qualified U.S. workers are scarce.
Consulting firms like Deloitte, PwC, and Ernst & Young, alongside outsourcing giants such as Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree, are top H-1B sponsors.
Lawyers at Berardi Immigration Law, specializing in business immigration, stated the move would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees.”
If enacted, the change would also apply to E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 short-term work visas for executives or managers at international firms, O-1 visas for individuals with “extraordinary ability” in science, sports, or the arts, and TN professional workers.
