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

Under the proposed rule published by the US Department of Homeland Security in the Federal Register, affected workers could be required to leave the United States as soon as their employment ends, potentially affecting companies that rely heavily on skilled foreign workers.

Proposal Targets H-1B And Other Temporary Visa Holders

The proposed change would end the 60-day grace period currently available to certain categories of temporary foreign workers following the termination of their employment.

The rule, if implemented, would affect H-1B visa holders as well as several other temporary visa categories.

These include E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 visa holders working as executives or managers for international companies, and O-1 visa holders recognised for “extraordinary ability” in fields including science, sport and the arts.

The proposed change would also apply to H-1B1 skilled worker visa holders from Singapore and Chile, E-3 speciality worker visa holders from Australia and TN professional workers.

What The 60-Day Grace Period Allows

The 60-day grace period has been in place since 2017 and provides eligible foreign workers with time to find another US employer willing to sponsor them or make arrangements before leaving the country.

The period can also allow workers to manage practical matters following a job loss, including selling property or arranging for children to leave school before departing the United States.

Under the proposed change, however, workers covered by the rule would lose this period to remain in the country after their employment ends.

Impact On Employers And Foreign Workers

The Department of Homeland Security acknowledged that the proposed rule could create disruption for affected companies.

However, the department said employers could instead fill the positions with qualified American workers. In some cases, foreign workers who leave the United States could potentially return if an employer subsequently files a petition on their behalf.

“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 notice said.

Immigration lawyers at Berardi Immigration Law said the proposal would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees.”

H-1B Programme Important For Technology Industry

Created by Congress in 1990, the H-1B programme is widely used by US companies, particularly in the technology sector, to hire skilled foreign workers for specialised roles.

The programme is particularly important for technology companies seeking talent from countries including India and China, especially for roles where employers say there can be a shortage of qualified American workers.

Major consulting firms such as Deloitte, PwC and Ernst & Young, along with outsourcing and technology companies including Tata Consultancy Services, Infosys, HCLTech and LTIMindtree, are among prominent H-1B sponsors.

Part Of Wider Trump Administration Immigration Push

The proposal is the latest step by the Trump administration to restrict legal immigration since Trump returned to office in January 2025.

The administration has also introduced higher visa fees for skilled foreign workers and recently paused immigrant visa appointments at US missions worldwide while implementing a new training programme.

The proposed rule will now undergo a two-month public comment period before it can be finalised and take effect.

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