Trump Administration Proposes Eliminating 60-Day Grace Period for H-1B Visa Holders

The Trump administration has moved closer to eliminating the 60-day grace period that allows H-1B and certain other foreign workers to remain in the US after losing their jobs, with the proposal clearing White House regulatory review. The rule has not yet taken effect and must still be published and go through the public-comment process. The proposed change could have a significant impact on Indian professionals, who accounted for 71 per cent of approved H-1B petitions in fiscal 2024. The proposal was prepared by the Department of Homeland Security, titled “Eliminating the Discretionary 60-day Grace Period,” and submitted to the White House Office of Information and Regulatory Affairs (OIRA) on August 6. In an update provided on Thursday, the OIRA website indicated that the proposal (RIN: 1615-AD22) had cleared review. The proposed change could affect Indian workers in the United States, who account for a large majority of approved H-1B petitions. The current regulation protects several employment-based categories, including H-1B, E-1, E-2, E-3, L-1, O-1, and their qualifying dependents. However, DHS is still required to publish the proposal, receive public comments, and finalise the regulation till any change can be implemented. Until then, the existing 60-day grace period remains in effect. Since the plan has not been published, its full provisions remain unavailable, and the 60-day grace period continues to be in effect. The current rule became effective January 2017 as a broader regulation that covers high-skilled immigrant and non-immigrant workers. The grace-period window allows eligible workers to stay in the United States for up to two months after their employment with a company ends, or until their authorised stay in the country expires, whichever comes earlier. The 60-day period allows the employee whose job has ended to obtain another sponsored position, apply for a different immigration classification, or prepare to exit the United States, American digital media organisation Newsweek reported. H-1B visa programme allows US companies to hire foreign workers for specialised occupations that require advanced knowledge. Since Indian workers have a sizeable presence in the US, any change in the H-1B visa programme is poised to have a disproportionate impact on Indian professionals. According to official US figures, in fiscal 2024, 71 per cent of approved H-1B petitions were for workers who were born in India. In another major overhaul, the Trump administration is planning to hike the H-1B visa fee to $103,265, making it expensive for employers to hire skilled foreign workers under the programme. This is the second attempt by the US government in one year to hike the H-1B visa fee cap, after introducing a $100,000 payment requirement for certain H-1B workers outside the US that was struck down by courts. Not yet. The proposal has cleared regulatory review but is not final. Eligible H-1B workers can stay in the US for up to 60 days after their employment ends, or until their authorised stay expires, whichever comes first. H-1B workers and certain other foreign workers could be affected if the proposal is finalised. Indians accounted for 71% of approved H-1B petitions in fiscal 2024, according to US government data. DHS must first publish the proposal, allow public comments and issue a final rule.