Trump administration proposes waiving grace period for H-1B holders after job loss - reuters.com

**Trump Administration Proposes Ending 60‑Day Grace Period for H‑1B Workers After Layoff**

Washington – The Department of Homeland Security (DHS) announced a proposed rule that would eliminate the 60‑day “grace period” currently available to foreign professionals on H‑1B visas after they lose their jobs. Under the existing policy, introduced in 2017, a laid‑off H‑1B holder can remain in the United States for up to two months while seeking a new employer, changing to another non‑immigrant status, or departing the country. The new proposal, published in the Federal Register on Tuesday, would require workers to leave the U.S. or file a new petition within a matter of days, effectively aligning the H‑1B program with other employment‑based non‑immigrant categories that have no statutory grace period.

U.S. officials say the change is intended to close a perceived loophole that allows some workers to remain in the country without a legitimate employer, thereby protecting the domestic labor market and ensuring the integrity of the visa system. The agency is opening a 60‑day public‑comment period, during which businesses, advocacy groups, and individual stakeholders can submit their observations. DHS will consider the input before issuing a final rule, which could take several months to implement. If adopted, the amendment would be the most significant tightening of the H‑1B program since the Trump administration’s broader immigration reforms.

Industry groups and foreign governments have pushed back strongly, warning that the removal of the grace period could disrupt the high‑tech sector that heavily relies on overseas talent, especially workers from India. The U.S. Chamber of Commerce, the Information Technology Industry Council, and several Indian tech firms argued that the policy would increase turnover costs, create legal uncertainties, and potentially push companies to relocate jobs outside the United States. The Indian Ministry of External Affairs also urged the U.S. to retain the existing provision, emphasizing the importance of the H‑1B program for bilateral economic ties. The administration’s final decision will be closely watched as it could reshape the hiring practices of U.S. tech firms and affect the career prospects of thousands of skilled immigrants.