The U.S. Department of Homeland Security has proposed the discontinuation of the 60-day grace period for certain non-immigrant workers after job termination, a change that could significantly impact H-1B and L-1 visa holders, particularly among the Indian community.
The U.S. Department of Homeland Security (DHS) announced on Thursday a draft proposal to eliminate the 60-day grace period currently afforded to certain non-immigrant visa holders after their employment is terminated. This proposal primarily affects H-1B visa holders, L-1 visa holders (those on intra-company transfers), and O-1 visa holders (who are recognized for extraordinary ability). Under existing regulations, non-immigrant workers are granted a discretionary grace period of up to 60 days, or until the expiration of their authorized stay, to seek new employment, apply for a change of visa status, or make arrangements to exit the United States.
Overview of the Proposed Change
The proposed rule marks a significant shift from a policy DHS instituted in 2016, which acknowledged that job loss was often beyond the control of the worker and recognized the benefits of allowing highly skilled foreign workers time to secure new employment. As articulated in the current proposal, DHS argues that the grace period undermines the employment-linked nature of these visa classifications. The agency states, “The up to 60-day discretionary grace period disconnects the alien’s lawful status from the very basis of eligibility under these employment-based non-immigrant classifications.” Furthermore, DHS contends that the prior rule “did not sufficiently consider the negative impacts of the grace period provision.”
Economic and Human Costs of the Proposal
In its proposal, DHS acknowledges the potential human and economic costs associated with eliminating the grace period. The department asserts that affected workers may experience financial strain as they would likely need to leave the U.S. and apply for readmission, rather than remaining in the country to seek new employment. This point has raised concerns among immigration advocates and affected communities.
DHS recognizes that many foreign workers and their families have established deep roots in the U.S., including homeownership, tax contributions, and community investments, based on the premise that they could remain legally in the country for up to 60 days after job loss. The proposal highlights that these individuals may have made significant career and personal decisions with the expectation of maintaining their legal status during this period.
Expert Analysis on Legal Implications
Legal experts have weighed in on the implications of this proposed change. Cyrus D. Mehta, a U.S. immigration attorney, commented, “If the discretionary 60-day grace period is eliminated, foreign nationals whose employment ceases prematurely (and their dependents) would no longer be maintaining status and would generally be required to depart the U.S. immediately, unless USCIS exercises its separate discretion to forgive the lapse in status and allow the foreign national to change status or change employers within the country.” This statement underscores the potential precarious situation many foreign workers could face under the proposed rule.
Impact on the Indian Community
The potential impact of this policy change on the Indian community in the U.S. is particularly notable. According to the latest U.S. Citizenship and Immigration Services (USCIS) data for the fiscal year ending September 30, 2025, 57,747 India-born beneficiaries constituted 50.3 percent of the 114,806 H-1B petitions approved for initial employment. This concentration becomes even more pronounced in ongoing employment cases, with India-born beneficiaries making up 77.6 percent of the 291,542 H-1B petitions approved for continuing employment. The elimination of the grace period could disproportionately affect this demographic, limiting their ability to transition to new employment opportunities.
Recent Trends in Immigration Policy
Recent trends indicate a tightening of regulations surrounding laid-off foreign workers. Immigration attorneys have noted that, under the previous administration, there was a marked increase in Requests for Evidence (RFEs) and Notices of Intent to Deny (NOIDs) for individuals attempting to leverage the 60-day grace period to transition to B-1/B-2 visitor status. This trend has raised concerns about the difficulties faced by individuals seeking to change their visa status while navigating an increasingly complex immigration landscape.
While the 60-day grace period remains in effect pending the introduction of a final rule, the proposed changes have spurred significant concern among immigration advocates and affected communities. The public comment period for the proposed rule is now open, allowing stakeholders to voice their opinions and concerns. The process leading to a final ruling may take several months, during which the implications of the proposed changes will continue to be scrutinized by legal experts, advocacy groups, and affected individuals.
Conclusion
The DHS’s proposed elimination of the 60-day grace period for non-immigrant workers following job loss represents a substantial policy shift, with significant implications for foreign workers, especially within the Indian diaspora. As the proposal moves forward through the public comment process, stakeholders are closely monitoring the potential outcomes and the broader impact on the U.S. immigration system.
