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

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

Key points

• It is the latest step by US President Donald Trump to limit legal migration since returning to office in January 2025.
• As well as outsourcing giants like Tata Consultancy Services, Infosys, HCL Tech and LTIMindtree, are top H-1B sponsors, consultancy firms such as Deloitte, PwC and Ernst and Young.
• It would additionally impact H-1B1 skilled worker visa holders from Singapore and Chile and E-3 speciality worker visa holders from Australia.
• Firms impacted by the change could see some disruption, DHS wrote in its proposal, but it stated the jobs could go to American workers instead.
• The rule is subject to a two-month public comment period before it can be enacted into law.

Trump administration proposes waiving grace period for H-1B holders after job loss. Reuters Published September 10, 2026 Updated September 10, 2026 08: 47pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

Notably, 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 administration 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 shortly as their employment ends – a potential blow to top American tech businesses 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 additionally introduced higher visa fees for skilled workers and lately paused immigrant visa appointments at US missions worldwide while it implements a new training programme.

Firms impacted by the change could see some disruption, DHS wrote in its proposal, but it stated 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 continued.

"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 remarked.

Meanwhile, the 60-day grace period, in place since 2017, allows foreign workers time to find another US job or obtain 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 firms seeking talent from India and China, allowing them to fill roles where there is sometimes a lack of qualified US workers.

Lawyers for Berardi Immigration Law. It specialises in business-related immigration problems, stated the move would "sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees".

If implemented, the change would additionally apply to E-1 international trader visa holders; E-2 commercial vehicle operator visa holders; L-1 short-term work for executives or managers with international businesses; O-1 visas for individuals "with an extraordinary ability" in science, sports or the arts; and TN professional workers.

Meanwhile, the rule is subject to a two-month public comment period before it can be enacted into law.

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