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Trump Administration Proposes Ending 60-Day H-1B Grace Period, Indian Tech Workers Face Impact

The Trump administration has proposed scrapping the 60-day grace period for H-1B and certain other temporary visa holders, potentially leaving Indian tech workers with far less time to find a new US sponsor after a job loss 

10-09-2026
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Indian professionals working in the United States on H-1B and other temporary employment visas could face significantly tighter timelines after the Donald Trump administration proposed removing the 60-day grace period currently available to workers who lose their jobs.

The proposal, reported by Reuters, would require affected foreign workers to leave the US after their employment ends unless they secure another lawful status or take steps to remain in the country through an alternative route.

What happens to H-1B workers if they lose their jobs?

The existing rules, introduced in 2017, allow eligible H-1B workers to remain in the US for up to 60 days after their employment ends. During this period, they can look for another employer willing to sponsor them, explore a change of status or make arrangements to leave the country.

The proposed rule would eliminate that additional window.

The US Department of Homeland Security published the proposal in the Federal Register, beginning the process of reviewing changes to the existing immigration framework.

If implemented, workers whose employment ends could have far less time to secure another opportunity and complete the necessary immigration formalities.

Why Indian IT professionals could be particularly affected

The change could have a substantial impact on Indian technology professionals because Indians account for a large proportion of H-1B visa holders in the US.

The visa programme is widely used by technology and consulting companies to employ specialised professionals. Major Indian IT companies, including TCS, Infosys, HCLTech and LTIMindtree, are among significant H-1B sponsors. Large consulting firms such as Deloitte, PwC and EY also employ workers through the programme.

For an Indian professional who is laid off, losing the 60-day window could make the process of finding another sponsoring employer considerably more difficult.

Immigration lawyers have warned that employers and HR departments would also have to move much faster when handling layoffs involving foreign workers.

Latest move in Trump's immigration crackdown

The proposal comes amid a broader effort by the Trump administration to tighten US immigration rules.

Since returning to office in January 2025, the administration has pursued several measures affecting legal migration, including changes involving skilled-worker visas and other immigration procedures.

The latest proposal also indicates that US employers could be expected to consider qualified American workers for positions that become available.

Under the proposed framework, employers could either offer positions to equally qualified US workers or file the required I-129 petition if they intend to continue employing eligible foreign workers.

More visa categories could be covered

The proposed changes extend beyond H-1B holders.

Several other categories of temporary foreign workers could also be affected, including:

  • E-1 international traders
  • E-2 commercial vehicle operators
  • L-1 executives and managers of multinational companies
  • O-1 workers with extraordinary ability in areas such as science, arts and sports
  • TN professional workers
  • H-1B1 workers from Singapore and Chile
  • E-3 specialty occupation workers from Australia

This means the potential impact could extend across multiple sections of the US temporary employment visa system.

Proposal not yet final

The measure is not yet in force. The proposed rule will undergo a public comment process lasting two months before the administration can decide whether and how to implement it.

If adopted, the elimination of the 60-day grace period would represent a significant change for foreign professionals who currently rely on the window to secure new employment, complete immigration paperwork or organise their departure from the US.

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