U.S. Considers Ending 60-Day Grace Period for Foreign Workers After Job Loss

The United States is considering eliminating the 60-day grace period currently granted to certain foreign workers who lose their jobs, a move that could require affected visa holders and their dependents to leave the country immediately if they are unable to maintain lawful immigration status.

According to NDTV, the proposal is currently under review by the White House Office of Management and Budget (OMB) and has not yet been finalized as law or regulation.

If adopted, the rule would end the existing grace period that allows eligible foreign workers to remain in the United States for up to 60 days after losing their employment or until the expiration of their authorized stay, whichever comes first. During that period, workers can typically search for a new employer, apply for a change of immigration status, or make arrangements to depart the country.

Under the proposed change, workers whose employment ends before their authorized period of stay expires would no longer have this temporary protection. They and their dependent family members could be required to leave the United States immediately unless they qualify for another lawful immigration status.

According to the U.S. Citizenship and Immigration Services (USCIS), Indian nationals are the largest beneficiaries of the H-1B visa program. In fiscal year 2024, 71% of approved H-1B petitions were granted to Indian citizens.

Recent U.S. Census data also indicate that more than 520,000 Indian-born residents live in the United States, highlighting the potential impact of the proposed policy on the Indian immigrant community.

The current grace period, introduced in 2017, applies to several employment-based nonimmigrant visa categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN visas. It provides eligible workers with time to secure new employment, change their immigration status, or prepare to leave the country without immediately falling out of lawful status.

If the proposed rule is approved, that protection would be eliminated for affected workers.