Washington: The Trump administration has proposed eliminating a 60-day grace period that allows certain immigrants, including skilled workers on H-1B visas, to remain in the United States and find a new sponsor after losing their jobs.

Under the proposed rule, published in the Federal Register by the US Department of Homeland Security (DHS) on Thursday, H-1B and certain other temporary work visa holders would have to leave the country as soon as their employment ends. The move could affect major US technology companies that rely heavily on foreign workers.

It is the latest step by US President Donald Trump’s administration to restrict legal immigration since he returned 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 globally while implementing a new training programme.

DHS acknowledged that companies could face some disruption from the proposed change but said the jobs could instead go to American workers. In some cases, workers who leave the US could reapply if their employer files a new petition.

“DHS presumes that they will either offer the same jobs to equally qualified U.S. workers or go through the I-129 petition process depending on their workforce requirement,” the notice said.

The 60-day grace period has been in place since 2017. It gives foreign workers time to find another job in the US or make arrangements to leave, including selling a home or withdrawing children from school.

“Many H-1B workers have been here for years, and they and their families have established themselves in their communities,” said Gabriel Chin, a professor at the University of California, Davis School of Law. “I see no legitimate reason to force them to leave because they are changing jobs.”

Visas critical for tech companies
H-1B visas, established by Congress in 1990, are particularly important for technology companies seeking skilled workers from countries such as India and China. The visas allow companies to fill positions where they say there may be a shortage of qualified US workers.

Consultancy firms including Deloitte, PwC and Ernst & Young, as well as outsourcing companies such as Tata Consultancy Services, Infosys, HCLTech and LTIMindtree, are among the major H-1B sponsors.

Lawyers at Berardi Immigration Law, which specialises in business immigration, said the proposal would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees”.

“It seems like every week this administration announces a new step to make life more difficult for immigrants in the US and the companies and communities that rely on them,” said Todd Schulte, president of FWD.us, an immigration advocacy group.

If implemented, the change would also apply to E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 visa holders working as executives or managers for international companies, O-1 visa holders with extraordinary ability in fields including science, sports or the arts, and TN professional workers.

It would also affect H-1B1 skilled worker visa holders from Singapore and Chile and E-3 specialty occupation workers from Australia.

The proposal is subject to a two-month public comment period before it can be finalised.