The Trump administration has proposed eliminating the 60-day grace period that allows certain temporary visa holders, including H-1B workers, to remain in the United States after losing their jobs while they seek another employer or prepare to leave the country.

The planned change was published by the Department of Homeland Security in the Federal Register, according to Reuters. If finalised, it could require affected workers to leave the country when their authorised employment ends instead of receiving up to 60 days to find a new sponsor, change immigration status or arrange their departure.

The measure remains a proposal and is not described as an immediately effective rule. Its final scope, implementation date and any exceptions would depend on the rulemaking process and the text ultimately adopted by the government.

The existing grace period gives eligible temporary workers up to 60 consecutive days following the end of employment, or until their authorised stay expires, whichever is shorter. It has provided workers with time to secure another sponsoring employer and complete the required immigration filings.

Under the proposed change, H-1B workers and holders of certain other temporary employment visas could be expected to depart as soon as their employment ends unless they have another lawful basis to remain.

Some workers who leave the country could potentially return if an employer later submits an approved petition on their behalf. DHS said companies may either offer vacant positions to qualified American workers or use the I-129 petition process when they need to employ a foreign national.

The proposal forms part of President Donald Trump’s broader effort to restrict legal immigration since returning to office in January 2025. His administration has also increased some visa-related fees and introduced other changes affecting immigration processing.

The proposal could have a major impact on Indian technology professionals, who account for a significant share of workers using the H-1B programme. Losing a job would create an immediate immigration challenge alongside the financial and professional consequences of unemployment.

Many H-1B workers have lived in the United States for years and may have spouses, children, homes and other long-term commitments. The existing period can be used to search for a new sponsor and handle practical matters such as housing, schooling, banking and travel.

Gabriel Chin, a professor at the University of California, Davis School of Law, argued that established workers and their families should not be forced to leave solely because an individual is changing jobs.

Without the grace period, workers may have less time to negotiate job offers and coordinate petitions with prospective employers. The change could also increase pressure on employees to remain with an existing sponsor, even when facing layoffs or difficult workplace conditions.

The H-1B programme, created by Congress in 1990, allows American employers to hire qualified foreign professionals for specialised occupations. It is particularly important to the technology, consulting and outsourcing industries.

Large consulting firms such as Deloitte, PwC and Ernst & Young are prominent users of the programme. Indian technology companies, including Tata Consultancy Services, Infosys, HCLTech and LTIMindtree, are also among its major sponsors.

DHS acknowledged that affected companies could experience some disruption. Immigration lawyers said eliminating the grace period would sharply reduce the time available to human-resources departments to manage layoffs and the departure or transfer of foreign employees. Companies planning workforce reductions may need to coordinate earlier with legal and immigration teams. Prospective employers could also face greater pressure to prepare and file petitions quickly when recruiting workers who have recently lost sponsored employment.

The proposal is likely to face scrutiny from businesses, immigration lawyers and worker advocacy groups. Supporters may argue that it could make more jobs available to US workers, while critics are expected to warn about talent loss and instability for employers and immigrant families.

Ending the grace period could also make the United States less attractive to specialised international workers who value the ability to change employers without immediately losing their lawful status.

H-1B holders affected by a layoff should not assume that the reported proposal has already removed their existing protections. Until a final rule takes effect, workers should consult the applicable government guidance and obtain qualified immigration advice based on their individual status and authorised stay.