White House Reviews Proposal to Eliminate 60-Day H-1B Visa Grace Period

The White House is currently reviewing a proposal from the Department of Homeland Security to eliminate the 60-day grace period for H-1B visa holders who lose their jobs. This proposal has cleared a key White House regulatory review by the Office of Information and Regulatory Affairs and is moving closer to public release. The 60-day grace period, introduced in 2017, currently allows specialty-occupation workers and dependents to remain in the U.S. for up to 60 days after termination to seek new employment or change status.

If finalized, H-1B workers would no longer be permitted to remain in the U.S. during this period and would be required to depart immediately, hindering their ability to transition employers without favorable USCIS discretion. The proposed change would also affect E-1, E-2, E-3, H-1B1, L-1, O-1, and TN nonimmigrant classifications alongside their dependents. Former White House advisor Ajay Jain Bhutoria has expressed strong objections to the potential policy alteration.

The Indian-American community faces significant exposure to this potential regulatory shift, as Indian nationals account for approximately 71 percent of H-1B visa recipients for the fiscal year 2024. Professionals caught in layoffs would face immediate relocation pressures, altering career planning and talent retention for technology firms. Stakeholders are closely watching for the formal publication of the rule to evaluate compliance timelines and legal challenges.