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US clears proposal to scrap 60-day H-1B job-loss grace period

Washington, August 29, 2026 (Yes Punjab News)

The Trump administration has completed its review of a proposal to eliminate the discretionary 60-day grace period available to H-1B and other foreign professionals after their employment ends, a move that could create fresh uncertainty for thousands of Indian workers and their families.

The Department of Homeland Security (DHS) proposal, titled “Eliminating the Discretionary 60-day Grace Period”, was submitted to the White House Office of Information and Regulatory Affairs (OIRA) on August 6. The review was completed on August 27, with the regulatory record listing the action as “Consistent with Change”, indicating that the proposal cleared the White House review with modifications.

The proposal has not yet been published, and its detailed provisions remain unavailable. The existing 60-day grace period therefore continues to apply.

The next step would ordinarily be publication of the proposed rule in the Federal Register, followed by a public comment period. DHS would then have to review the comments and issue a final rule before any changes could take effect.

The proposal, carrying Regulatory Information Number 1615-AD22, is being developed by US Citizenship and Immigration Services. The regulatory record describes it as a proposed rule that is not economically significant and has no statutory deadline.

Under current rules, eligible workers can receive up to 60 consecutive days after their employment ends, or until their authorised stay expires, whichever comes first. The period allows workers to seek another employer willing to sponsor them, apply for a change of immigration status or make arrangements to leave the US.

The provision covers H-1B, L-1, O-1 and certain other temporary employment visa holders.

Indian nationals, who account for the largest share of H-1B beneficiaries, could be particularly affected if the proposal is implemented.

Ajay Jain Bhutoria, a former member of the President’s Advisory Commission on Asian Americans, Native Hawaiians and Pacific Islanders, criticised the proposal and called for the grace period to be extended instead.

“Eliminating the 60-day grace period is both inhumane and unworkable,” Bhutoria said, arguing that the existing period was already too short for highly skilled workers facing sudden job losses.

He said affected families could struggle to manage housing, children’s education and other personal matters following an unexpected termination.

Bhutoria also said he had secured unanimous support from the White House AANHPI Commission in 2023 for a recommendation to extend the grace period from 60 to 180 days. He argued that hiring processes in technology, healthcare and engineering can involve multiple interview rounds followed by immigration paperwork, often taking several months.

The 60-day provision took effect in January 2017 as part of broader regulations covering high-skilled immigrant and non-immigrant workers. It can generally be used once during each authorised validity period, although immigration authorities retain discretion to shorten or deny the period.

The H-1B programme allows US employers to hire foreign professionals for specialised occupations requiring advanced knowledge. Technology companies are among its major users, while Indian nationals have consistently represented a substantial majority of approved H-1B beneficiaries.

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