Trump administration proposes waiving grace period for H-1B holders after job loss

The Trump administration has proposed eliminating a 60-day grace period that allows certain immigrants, including skilled workers on H-1B visas, to stay in the United States and find a new sponsor after losing their job, according to a government notice posted online on Thursday. Under the planned rule change, published in the Federal Register by the US Department of Homeland Security (DHS), those with H-1B and certain other temporary work visas would have to leave the country as soon as their employment ends — a potential blow to top American tech companies that rely heavily on foreign workers. It is the latest step by US President Donald Trump to limit legal migration since returning to office in January 2025.

His administration has also introduced higher visa fees for skilled workers and recently paused immigrant visa appointments at US missions around the world while it implements a new training programme. Companies impacted by the change could see some disruption, DHS wrote in its proposal, but it said the jobs could go to American workers instead. In some situations, immigrant workers who leave could potentially reapply if their employer petitions for them, it added. “DHS presumes that they will either offer the same jobs to equally qualified US workers or go through the I-129 petition process depending on their workforce requirement,” the notice said. The 60-day grace period, in place since 2017, allows foreign workers time to find another US job or get their affairs in order, whether selling a home or pulling children out of school before leaving the country. H-1B visas, established by Congress in 1990, are especially critical for tech companies seeking talent from India and China, allowing them to fill roles where there is sometimes a lack of qualified US…