US mulls scrapping 60-day grace period for H-1B workers after layoffs

Proposal could upend safety net for visa holders

Washington is weighing a plan to remove the 60-day grace period that currently lets H-1B visa holders stay in the US after losing their jobs. The proposal, reported by multiple US outlets, has sparked anxiety among thousands of Indian tech workers who depend on this window to find new employment or switch visa status.

Under existing rules, a foreign worker on an H-1B visa has 60 days after termination to either secure a new employer, file for a change of status, or leave the country. Scrapping this buffer would mean that a layoff could effectively trigger immediate departure unless the worker has another visa or pending application in hand.

What the plan entails

The Department of Homeland Security (DHS) is said to be reviewing the proposal, which would eliminate the automatic grace period for non-immigrant visa categories, including H-1B, L-1, and O-1. While no formal rule has been published, sources indicate that the change is being discussed as part of a broader immigration tightening agenda.

If implemented, the rule would apply to future layoffs and possibly to pending cases. Workers who lose their jobs would have to rely on individual requests for relief, which immigration officers may or may not grant. This introduces a layer of uncertainty that did not exist before.

Impact on Indian professionals

Indians account for roughly 70 percent of all H-1B visas issued annually, with a significant share employed in IT services, consulting, and software development. For this cohort, the 60-day window is often the difference between staying and being uprooted.

The tech industry has already seen waves of layoffs in recent years, and this change would make the US job market far less forgiving for foreign talent. Immigration attorneys warn that the proposal could lead to a spike in forced departures, disrupting both careers and family lives.

Reactions and concerns

Employer groups and tech associations have pushed back, arguing that the grace period is a practical necessity in a volatile job market. They point out that even US citizens get severance and unemployment benefits, while visa holders would be left with almost no transition time.

On the other hand, proponents of the change say it aligns with the administration's goal of prioritising American workers and reducing reliance on foreign labour. They argue that H-1B visas are meant to fill genuine skill gaps, not to serve as an open-ended residency route.

Indian officials have not yet commented publicly, but the issue is likely to come up in bilateral talks. New Delhi has repeatedly raised concerns about H-1B policy changes, given the scale of Indian professionals affected.

What lies ahead

The proposal is still in the discussion stage, and no timeline has been announced for a formal rule or public comment period. Any change would need to go through the standard federal rulemaking process, which typically takes months.

For now, H-1B holders are advised to monitor updates from DHS and consult legal experts before making any career moves. The uncertainty alone is enough to reshape decisions about job changes, relocations, and long-term plans in the US.