Agencies | Washington:
A proposal by the Trump administration to eliminate the discretionary 60-day grace period available to certain foreign workers after losing their jobs has cleared a key White House regulatory review, moving the measure closer to public release while leaving the current rule unchanged for now. The development is expected to have significant implications for H-1B visa holders, particularly Indian professionals who constitute the largest share of beneficiaries under the programme.
The Department of Homeland Security (DHS) proposal was approved by the White House Office of Information and Regulatory Affairs (OIRA), according to Bloomberg Law. The approval marks an important step in the federal rulemaking process, but the proposal has not yet been published and has not taken legal effect. The full scope of the proposed changes will become clear only after DHS releases the draft regulation for public review and comment.
Under regulations introduced by DHS in 2017, certain employment-based non-immigrant workers whose jobs are terminated may generally remain in the United States for up to 60 consecutive days, or until the expiry of their authorised stay, whichever comes first. The provision was designed to provide eligible workers with time to secure new employment, apply for a change of immigration status or make arrangements to depart the country.
The grace period applies to eligible holders of E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN classifications, along with qualifying dependants. However, it is discretionary rather than automatic in every circumstance, and workers whose authorised stay expires earlier may receive less than the full 60-day period.
The proposed DHS regulation seeks to eliminate the discretionary 60-day post-employment grace period altogether. While the measure has completed White House regulatory review, the text of the proposed rule has not yet been made public, leaving several critical questions unanswered, including the categories of workers covered, possible exemptions and whether alternative safeguards may be included.
If ultimately finalized in its present form, the proposal could substantially reduce the time available to workers who unexpectedly lose their jobs to find another sponsoring employer or pursue another immigration option from within the United States. However, no change will occur unless DHS completes the formal rulemaking process and issues a final regulation with an effective date.
The proposal is being closely watched by Indian professionals because India remains the dominant source of H-1B beneficiaries. According to the latest USCIS congressional report, beneficiaries born in India accounted for 71 per cent of approved H-1B petitions during fiscal year 2024, making any change to post-employment immigration rules particularly significant for thousands of Indian workers and their families.
Former White House adviser Ajay Jain Bhutoria has strongly criticised the proposal, describing the possible elimination of the grace period as “inhumane and unworkable.” He has argued that instead of removing the existing provision, the government should consider extending it to 180 days to provide workers and their families adequate time to secure new employment and address housing, schooling and other personal responsibilities following an unexpected job loss.
The next step will be the publication of the proposed DHS rule, after which stakeholders, employers, immigration attorneys, workers and members of the public will have an opportunity to submit comments during the formal consultation period. DHS will then review the feedback before deciding whether to modify, withdraw or finalize the regulation. Until that process is completed and a final rule takes effect, the existing 60-day grace period continues to remain the governing framework for eligible non-immigrant workers.
