Trump Administration Proposes Eliminating 60-Day Grace Period for H-1B and Work Visa Holders After Job Loss

Trump Administration Proposes Eliminating 60-Day H-1B Grace Period

The U.S. Department of Homeland Security has proposed eliminating the 60-day grace period for unemployed H-1B and other temporary visa holders, requiring them to leave the United States immediately upon job loss. Published in the Federal Register, the rule change targets tech-dependent firms and faces a two-month public comment period before potential enactment.

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The Bottom Line

• Immediate Departure: The proposed rule forces H-1B, L-1, O-1, and TN visa holders to depart the United States the moment their employment terminates, removing the 60-day window established in 2017.
• Labor Market Shift: The Department of Homeland Security asserts the policy will incentivize corporations to hire domestic talent or navigate standard I-129 petition processes.

Operational Pressure on Tech Giants and Consultancies

For decades, major technology firms and consulting enterprises have relied on the H-1B visa program—established by Congress in 1990—to recruit specialized technical talent from nations like India and China. According to industry records, top sponsors include major global consultants such as Deloitte, PwC, and Ernst & Young, alongside outsourcing leaders like Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree.

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The Department of Homeland Security argues that cutting the grace period will reduce administrative complexity for federal agencies while prioritizing domestic workers.

Visa Classification	Affected Professionals	Proposed Regulatory Impact
H-1B / H-1B1	Skilled Specialty Workers	Immediate departure upon job termination; removal of 60-day window
L-1	Executives and Managers with international companies	Immediate termination of status upon cessation of qualifying employment
O-1	People “with an extraordinary ability” in science, sports or the arts	Immediate loss of legal status without an active sponsor transfer
TN / E-1 / E-2 / E-3	Professional Workers and International Traders	Mandatory exit required upon employment cessation

Broader Economic and Legal Crosscurrents

This regulatory push forms part of a broader administrative strategy led by U.S. President Donald Trump since returning to office in January 2025. Alongside this proposed rule, the administration has increased fees for skilled worker visas and temporarily paused global immigrant visa appointments to implement new training programs. However, legal challenges remain active across the federal judiciary. Notably, a federal judge in Boston recently ruled against a separate administrative effort to impose a $100,000 fee on H-1B visas, deeming it an unauthorized tax—a decision the administration is currently appealing.

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Immigration advocates argue that the cumulative effect of these policies disrupts established communities. “It seems like every week this administration announces a new step to make life more difficult for immigrants in the U.S. and the companies and communities that rely on them,” said Todd Schulte, president of immigration advocacy group FWD.us.

Macroeconomic Consequences for Corporate Compliance

The Department of Homeland Security projects that eliminating the grace period will incentivize corporations to reallocate positions to domestic workers. “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 agency noted in the Federal Register notice.

Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.