The US Department of Homeland Security (DHS) has proposed eliminating the 60-day grace period available to H-1B visa holders who lose their jobs, a move immigration experts say could create significant disruption for skilled foreign workers and the employers who hire them.
The proposal carries particular significance for Indians. According to US government data cited in reports, Indian nationals accounted for 71% of all successful H-1B applicants in fiscal year 2024, making them the largest beneficiary group under the programme.
If implemented, the change would remove a provision that currently allows H-1B workers and certain other legal non-immigrants to remain in the United States for up to 60 days after their employment ends while they seek a new sponsor, change immigration status or prepare to leave the country.
Proposed rule raises concerns for skilled immigrants
The proposal has drawn criticism from immigration advocates and policy experts, who warn that removing the transition period could place legal immigrants in a vulnerable position following unexpected job losses.
Ajay Jain Bhutoria, a former White House adviser, described the proposal as a setback for highly skilled immigrants.
According to statements reported by media outlets, Bhutoria said removing the grace period would directly affect legal immigrants who have contributed to the United States' technological and economic growth. He also described the proposal as a regression in immigration policy and warned it could leave workers with little time to manage professional and personal obligations following termination.
The current grace period serves as a buffer that enables workers to navigate immigration procedures, employment transitions and relocation decisions without immediately falling out of legal status.
Indians likely to feel the strongest impact
The proposed change could disproportionately affect Indian professionals because of their dominant presence in the H-1B programme.
Key facts include:
- Indian nationals accounted for 71% of successful H-1B applicants in fiscal year 2024
- Large numbers of Indian professionals work in US technology, healthcare and engineering sectors under H-1B status
- The visa category remains one of the primary pathways for skilled foreign talent employed by US companies
Experts say the removal of the grace period could create uncertainty for workers and families already managing complex immigration processes.
Bhutoria stated that hundreds of thousands of South Asian professionals rely on H-1B status and warned that ending the provision could result in financial strain, psychological stress and educational disruption for children living in the United States.
Employers may also face unintended consequences
Legal experts say the impact may extend beyond visa holders themselves.
Adrian Pandev, a US immigration attorney, noted that the grace period is frequently used by professionals who transition from corporate employment into entrepreneurial ventures.
According to comments shared publicly by Pandev, the existing rule allows workers time to file change-of-status petitions and complete immigration paperwork after leaving an employer.
He warned that eliminating the provision could alter employee behaviour, encouraging workers to delay discussions with current employers about future plans until alternative immigration arrangements are secured. This, he said, could create operational challenges for businesses and reduce workforce planning visibility.
Pandev also suggested that employers could face the same level of disruption as employees if the proposal becomes policy.
Debate shifts to talent retention and competitiveness
The proposal arrives as the United States continues to compete globally for highly skilled workers in sectors such as technology, engineering and healthcare.
Bhutoria said he had previously advocated extending the grace period from 60 days to 180 days during his time advising the Biden administration. He cited lengthy hiring processes, multiple interview rounds and visa transfer requirements as reasons many professionals need more time, not less, to secure new employment.
Supporters of a longer transition period argue that it would better reflect modern recruitment timelines and help retain skilled talent already contributing to the US economy.
The discussion has also prompted calls for community organisations, advocacy groups and business leaders to participate in the public consultation process once the proposal is formally published in the Federal Register.
What happens next
The proposal remains under consideration and has not yet become policy.
If implemented, it would significantly alter the post-employment options available to H-1B workers and other eligible legal non-immigrants. The outcome will be closely watched by employers, immigration lawyers, technology companies and foreign professionals across the United States.
For Indian workers, who make up the majority of H-1B visa holders, the decision could shape future career mobility, immigration planning and long-term residency prospects in one of the world's largest labour markets.