Trump Administration Proposes Eliminating Grace Period for H-1B Visa Holders

The Trump administration has proposed eliminating the 60 day grace period that allows H-1B visa holders and other temporary workers to remain in the United States to find a new sponsor after losing their employment. According to a government notice published in the Federal Register by the Department of Homeland Security (DHS), affected workers would be required to leave the country as soon as their employment ends. The proposal also applies to other visa categories, including L-1, O-1, TN, E-1, E-2, E-3, and H-1B1 holders.

The DHS stated that while companies might experience disruption, the change is intended to ensure jobs go to American workers. The agency noted that immigrant workers could potentially reapply if an employer petitions for them. The 60 day grace period has been in place since 2017 to allow workers time to find new employment or settle their personal affairs. This move follows other recent administration actions to limit legal migration, such as increasing visa fees and pausing immigrant visa appointments.

Industry experts and legal professionals suggest the move would compress the timeline for HR teams to manage layoffs. Major sponsors of H-1B visas include tech companies and consultancies such as Deloitte, PwC, Ernst and Young, Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree. The rule is currently subject to a two month public comment period before it can be enacted into law.