H-1B Visa: US Clears Plan To Scrap 60-Day Grace Period – What It Means for Indian Workers

The White House has completed its review of a proposal to eliminate the 60-day post-employment grace period for foreign workers, including those on H-1B visas. The proposal, submitted by the Department of Homeland Security, was sent to the Office of Management and Budget earlier this month, though its details have not yet been made public. If implemented, the move could leave thousands of skilled workers with little time to find new jobs or make arrangements to leave the US, with Indian employees likely to be among those most affected.

The proposal will become clearer once it is published in the Federal Register. Publication would also trigger a public comment period, which typically lasts between 30 and 60 days, before any final rule can take effect.

Indian H-1B Workers Could Be Among Those Affected

The potential change is particularly significant for Indian nationals, who account for a large share of H-1B visa beneficiaries, said reports. Indian nationals represented 71 per cent of successful H-1B applicants in fiscal year 2024. The Indian-American population in the US is estimated at around 5.2 million. H1B Visa: US May End 60-Day Grace Period After Job Loss, Indian Workers Could Be Hit Hard.

Former White House adviser Ajay Jain Bhutoria has criticised the proposal, arguing that eliminating the grace period would leave highly skilled foreign workers with little time to respond to an unexpected termination. Bhutoria, who served as an adviser to former President Joe Biden, said the existing 60-day period was already difficult for workers facing sudden job losses and called instead for it to be extended to 180 days.

"Eliminating the 60-day grace period is both inhumane and unworkable," Bhutoria said. He argued that workers and their families need adequate time to find employment, deal with housing arrangements, move children out of schools and manage other personal affairs. H-1B Visa Holders Face Tougher US Immigration Rules Amid Policy Shifts: Report.

For now, the proposal has only cleared White House review and has not yet been published. Its precise provisions, including which workers would be covered and how the change would be implemented, will be known once the proposed rule appears in the Federal Register and enters the public comment process.

What Happens If The Grace Period Is Scrapped?

Under the existing rules, certain nonimmigrant workers and their dependants can remain in the US for up to 60 days after employment ends, or until the end of their authorised stay, whichever comes first. The provision allows workers time to find another employer, change their immigration status or make arrangements to leave the country.

If the proposed change is finalised, workers whose employment ends before their authorised stay expires could lose that buffer and may generally be required to leave the US immediately. They could also lose the ability to change their employer or immigration status from within the US unless US Citizenship and Immigration Services exercises discretion to excuse a lapse in status.

The rule currently covers several categories of nonimmigrant workers, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN visa holders, as well as their dependants.

The 60-day provision was introduced in 2017 and was intended to give foreign workers and their families some time to deal with an unexpected loss of employment. Immigration consultants have said DHS already has the authority to shorten or deny the grace period in individual cases, although that power has rarely been used.

(The above story first appeared on LatestLY on Aug 29, 2026 08:27 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).