- Trump proposes ending H-1B grace period.
- Indian technology pros could be affected.
- DHS says companies could face disruption.
THE TRUMP ADMINISTRATION proposed ending the 60-day grace period that lets H-1B workers stay in the U.S. after losing their jobs to seek a new sponsor. The move could affect Indian technology professionals, who account for a large share of H-1B visa holders.
Major sponsors such as Tata Consultancy Services, Infosys, HCL Technologies, LTIMindtree, Deloitte, PricewaterhouseCoopers and Ernst & Young could also be affected, according to Reuters.
The Department of Homeland Security published the proposal in the Federal Register on Sept. 11, opening a 60-day public comment period. Under the rule, H-1B and certain other temporary visa holders would have to leave the U.S. when their employment ends, rather than have 60 days to find a new employer or arrange their departure.
DHS said the proposal "restores a direct relationship between an alien's nonimmigrant status and the specific employment or activity that formed the basis of his or her admission or grant of status in the U.S. and reduces administrative burden."
The grace period, in place since 2017, gives foreign workers time to find a new US employer or arrange their departure, including finding housing, moving belongings and withdrawing children from school, Reuters reported.
Immigration lawyers at Berardi Immigration Law said the proposal would "sharply compress the timeline human resources teams have to manage layoffs and offboarding for foreign national employees."
DHS also acknowledged that companies could face disruption but said the jobs could go to American workers instead. Under the proposal, employers would either offer open positions to "equally qualified U.S. workers" or use the I-129 petition process to retain foreign workers.
The change would also cover visa categories beyond H-1B, including E-1 treaty traders, E-2 treaty investors, E-3 specialty workers from Australia, L-1 executives and managers, O-1 workers with extraordinary ability, TN professionals and H-1B1 workers from Singapore and Chile, Reuters reported.
Congress created the H-1B program in 1990 to help the U.S. companies fill jobs amid shortages of qualified domestic workers. The Trump administration also raised visa fees for skilled workers and paused immigrant visa appointments at US missions while rolling out a new training program.
In September 2025, Trump signed a proclamation raising the H-1B visa fee to $100,000 a year, saying the increase was meant to ensure incoming workers are "highly skilled" and do not displace American employees.
Workers who leave the country could return later if an employer files a new petition on their behalf.
