The Trump administration has suggested eliminating the 60-day grace period existing for some foreign workers after they lose their jobs in the United States, potentially making the immigration application process for H-1B visa holders and for other employment-based visa types more difficult.
The proposal, from the U.S. Department of Homeland Security (DHS), would end the current provision that allows workers to remain in the country for up to 60 days after the end of their employment, under current rules. Now that they’ve been approved, workers who are terminated from the job will have a much shorter time to leave the country or to get another lawful immigration status.
The proposed change would be especially crucial for Indian professionals who make up a large share of the H-1B workforce. According to the figures cited in the proposal and in the most recent report, Indian nationals accounted for about 70% of H-1B approvals in FY2025, and are among those who would be most impacted by any major changes to the program.
The existing 60-day period was established in 2017 and was meant to give some employment-based visa holders time to find a new employer, adopt a new status, or make arrangements to leave the country after their employment ends. DHS would eliminate this discretionary grace period, and it would restore a more direct link between a worker's immigration status and the employment or activity that forms the basis for that status.
The proposal does not only apply to H-1B workers. DHS says the change would also cover E-1, E-2, E-3, H-1B1, L-1, O-1 and TN nonimmigrant classifications, as well as their dependents. These categories cover a lot of professionals, including intra-company transferees, people with extraordinary talent, some workers from Canada and Mexico, and workers from countries covered by specific visa arrangements.
And for the workers who lose their jobs, the implications could be huge. The grace period can give them time to find another job, apply for immigration documents, sell or move to another country, or prepare for children and family members. Stripping that buffer will make employment transition so difficult.
But DHS argues that eliminating the grace period would reduce administrative burdens and create more solid connections between a nonimmigrant’s legal status and the work or activity that secured them the visa. And the department also recognizes that the change could affect workers and businesses.
The DHS analysis estimates that about 3,795 workers in the affected visa categories had a new Form I-129 petition submitted by a new employer during the current grace period in the data examined. Of these, about 3,765 were H-1B workers, or 99.2% of the group. DHS also estimated a median annual wage of $131,000 for the relevant H-1B workers in FY2025.
Importantly, the 60-day grace period has not been removed. The proposal is subject to a public comment process, and comments must be received by Nov. 10, 2026. The administration would need to consider public feedback before issuing a final rule.
In the meantime, H-1B workers and other affected visa holders are still covered by the existing framework. But if the proposal is ultimately finalized, losing a job could trigger a much more immediate immigration crisis for foreign professionals and their families in the United States.
The proposal is therefore an important shift in the U.S. employment-based immigration policy, especially for the large Indian professional community that relies heavily on the H-1B program.
