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US Moves to End 60-Day Job-Loss Grace Period for H-1B Holders

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A Trump administration proposal would end the grace period letting laid-off H-1B and other work visa holders stay in the US, affecting many Indian workers.

The Trump administration has moved to end the grace period of up to 60 days that lets H-1B workers and holders of several other employment-based visas stay in the United States after they lose their jobs. The Department of Homeland Security prepared the proposal for publication in the Federal Register on September 11, 2026.

Under current rules, workers who are laid off get a short window to line up a new sponsoring employer or shift to another immigration status before they must go. The proposal would strip out that cushion. Categories affected include the E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN classifications, along with the dependents of those visa holders.

If the rule is finalised, a worker whose job or qualifying activity ends would generally be required to leave the country right away, unless they hold some other authorisation to stay. That would remove a buffer many rely on while searching for new work.

DHS argued that the existing grace period breaks the link between a person's lawful status and the employment that justified granting the visa in the first place. The department framed the change as a return to an earlier approach, in which a visa holder was expected to depart once work with the sponsoring employer stopped.

The agency also noted that the grace period was never a fixed entitlement. It is discretionary, meaning DHS can already trim or withdraw it.

The change carries particular weight for Indian nationals, who make up a large share of H-1B recipients in the US technology sector. A shorter timeline to secure new sponsorship would raise the stakes for anyone caught in a round of layoffs.

H-1B visa, 60-day grace period, Trump administration, DHS proposal, laid-off workers, employment visa, Indian tech workers, US immigration

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