Based on a government notice published online on Thursday, the Trump administration has put forward a proposal to scrap a 60-day window that permits temporary employment and H-1B visa holders to remain in the United States to secure a new sponsor following a job loss. Department of Homeland Security, affected workers would have to leave the country as soon as their employment ends, posing a potential disruption for major American companies that rely on foreign talent.
Regulatory Proposal and Scope of Impact
The proposed rule change represents the latest step by U.S. President Donald Trump to limit legal migration since returning to office in January 2025. According to the government notice, the measure applies to several categories of employment-based visa holders. If implemented, the elimination of the grace period would impact H-1B skilled workers, E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, and L-1 short-term workers for executives or managers with international companies. Furthermore, the plan would impact TN professional workers, O-1 permits for people possessing extraordinary talent in the arts, athletics, or sciences, E-3 specialty occupation visa holders originating from Australia, and H-1B1 skilled worker visa holders from Chile and Singapore.
Immigration-policy group FWD.us estimates that approximately 730,000 H-1B visa holders live in the United States, alongside roughly 550,000 dependent family members, illustrating the broad scope of potential changes to the visa program. Established by Congress in 1990, H-1B visas are particularly critical for technology companies seeking talent from India and China to fill roles where qualified U.S. workers may be lacking. Top corporate sponsors include major consultancy firms such as Deloitte, PwC, and Ernst & Young, alongside outsourcing giants like Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree.
Did You Know? The 60-day grace period was originally introduced during the final days of the Obama administration and took effect in 2017 to provide flexibility for highly skilled foreign workers facing sudden job losses.
Industry Reaction and Administrative Context
Lawyers for Berardi Immigration Law, a firm specializing in business-related immigration issues, stated that the move would sharply compress the timeline human resources teams have to manage layoffs and offboarding for foreign national employees. Under current rules, the 60-day window allows foreign workers time to secure another U.S. job, change immigration status, sell a home, or pull children out of school before leaving the country. Without that window, workers could face heightened pressure to find a new sponsor or exit the United States before falling out of legal status.
The Department of Homeland Security acknowledged in its proposal that impacted companies could experience some disruption. However, the agency stated that the jobs could go to American workers instead, adding that departing immigrant workers could potentially reapply if their employer petitions for them. “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.
Broader Immigration Shifts and Next Steps
The proposed elimination of the grace period follows a series of administration actions targeting legal immigration. Since January 2025, officials have introduced higher visa fees for skilled workers and temporarily paused immigrant visa appointments at U.S. missions worldwide to implement a new training program. Additionally, DHS finalized a rule expanding existing $4,000 and $4,500 biometric screening fees to certain H-1B and L-1 visa extension petitions, while a separate plan to impose a $100,000 fee on certain new H-1B petitions filed for workers outside the country was blocked by a federal court in State of California v. Mullin.
The newly proposed rule is subject to a two-month public comment period before it can be enacted into law. The existing 60-day grace period remains fully in effect while the regulatory review and rulemaking process move forward.
Frequently Asked Questions
What is the current 60-day grace period?
Established in 2017, the grace period allows certain foreign workers, including H-1B visa holders, to remain in the United States for up to 60 days after losing their jobs to find a new sponsor, change their immigration status, or make travel arrangements.
Which visa categories would be affected by the proposed rule?
The proposed change would impact H-1B, H-1B1, L-1, O-1, TN, E-1, E-2, and E-3 visa holders.
When will the rule take effect?
The proposal is currently subject to a two-month public comment period and cannot be enacted until the formal rulemaking process is completed.
How will employers adjust their hiring and offboarding strategies if the grace period is ultimately eliminated?
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