The Trump administration has proposed ending the 60-day grace period that allows certain foreign workers, including H-1B visa holders, to remain in the US after losing their jobs.
The proposal was published by the US Department of Homeland Security (DHS) in the Federal Register on Thursday. It would remove the current rule that gives eligible workers up to 60 days after employment ends to find another sponsor or prepare to leave the country.
The proposal is not yet a final rule. It will go through a 60-day public comment period before DHS can decide whether to put the change into effect.
Pressure on H-1B Sponsors
The proposed change could affect technology companies, consulting firms and outsourcing businesses that rely on foreign skilled workers.
Under the current system, the 60-day period gives workers time to look for another job, transfer their visa sponsorship or arrange their departure from the US.
Removing that window would give employers and workers much less time to manage employment changes.
Immigration lawyers cited by Reuters said the proposal could sharply reduce the time HR teams have to manage layoffs and the departure of foreign workers.
Major H-1B sponsors include technology and consulting companies such as Tata Consultancy Services, Infosys, HCL Technologies, LTIMindtree, Deloitte, PwC and Ernst & Young.
For these businesses, a tighter timeline could make workforce planning and employee transfers more difficult.
What Other Visa Categories Included?
The proposed rule would not apply only to H-1B workers.
It would also cover certain holders of E-1, E-2, L-1, O-1 and TN visas, as well as H-1B1 workers from Singapore and Chile and E-3 workers from Australia.
The DHS proposal says workers who leave the US could potentially return later if an employer submits a new petition for them.
DHS also argues that companies could offer the jobs to qualified US workers or use the existing petition process when they need foreign workers.
Why H-1B Matters to Technolog?
The H-1B programme allows US employers to hire foreign professionals for specialised jobs.
The programme was created by Congress in 1990 and has become particularly important to the technology sector, where companies use foreign talent for roles requiring specialised skills.
Indian professionals make up a large share of H-1B workers, making changes to the programme especially relevant to Indian technology and outsourcing companies.
The latest proposal comes after other changes to the H-1B system under the Trump administration, including higher visa costs and tighter immigration controls.
For now, however, the 60-day grace period remains in place.
The proposed rule must first go through the public comment process before the US government can decide whether to remove it.
Last modified: September 11, 2026
