Trump Administration Seeks to End 60-Day Grace Period for H-1B Visa Holders

Losing a job could immediately end legal U.S. residency for thousands of skilled foreign workers under a new proposal from the Department of Homeland Security. The change would eliminate the 60-day grace period that currently allows H-1B and several other nonimmigrant visa holders to remain in the country after their employment ends.

The Federal Register notice published Friday states that the rule would tie visa status more directly to a specific employer and reduce administrative workload for USCIS. DHS estimates that nearly 4,000 workers each year have used the grace period to file new petitions, with more than 99 percent holding H-1B visas. The period was established in early 2017 under the Obama administration and applies to H-1B, L-1, O-1, E-1, E-2, TN, H-1B1, and E-3 visas.

Public comments on the proposal will be accepted for 60 days. If finalized, workers would become immediately removable upon job loss, a shift DHS argues would protect U.S. workers by encouraging employers to hire domestically or reassign tasks. The notice also notes that the existing rule already permits DHS to shorten or skip the grace period in some cases; from October 2017 through May 2026, USCIS reviewed 1.9 million petitions or applications for possible application of the period.

Advocacy group FWD.us estimates roughly 730,000 H-1B holders and 550,000 dependents currently live in the United States. The proposal acknowledges potential effects on families but concludes that the harms of the grace period outweigh benefits to workers, employers, and communities. Earlier Trump administration actions have already replaced the H-1B lottery with a wage-based selection system and proposed new fees, including a $103,265 petition fee and expanded biometric charges.

One H-1B recipient, Soumi Chanda, described leaving the country after an Amazon layoff last year. She reported spending approximately $18,000 on relocation, including costs for her two cats, lease termination, and international flights, and said she received no interviews in the month after losing her job. Business Insider verified her employment at U.S. Bank, Neogen, and Amazon through former colleagues and public records.