The United States is considering a significant change to its immigration rules that could have far-reaching consequences for thousands of foreign workers. A proposal currently under review by the White House Office of Management and Budget (OMB) aims to eliminate the 60-day grace period that non-immigrant visa holders currently enjoy after losing their jobs. If approved, foreign workers would be required to leave the United States immediately upon termination of employment, leaving no room for job hunting or status adjustment.
Proposal Under Review by OMB
According to the Hindustan Times, the draft regulation from the Department of Homeland Security (DHS) is now being examined by the OMB. While the full details of the proposal have not been made public, it is understood that the plan would end the 60-day grace period for certain visa categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN visas. Dependents of these visa holders would also be affected by the proposed change.
The proposal is still in the early stages of the federal review process. If it clears this hurdle, the public will have a 30 to 60-day window to submit comments before DHS considers finalising the rule. The change would only take effect once formally published in the Federal Register, meaning there is still time for stakeholders to voice their concerns.
Impact on Indian H-1B Workers
The potential change could have significant consequences for Indian professionals working in the United States. According to data from US Citizenship and Immigration Services (USCIS), a total of 399,402 H-1B petitions were approved in fiscal year 2024. Of these, a striking 71% of beneficiaries were born in India, making them the largest group of H-1B visa holders in the country.
Without the grace period, workers who are laid off would face immediate consequences for their legal status. They would have little to no time to find a new employer sponsor or change their visa status, potentially forcing them to uproot their lives and families at short notice. This could lead to a brain drain of skilled workers and create uncertainty for both employees and employers who rely on foreign talent.
Current 60-Day Rule Explained
Since 2017, DHS regulations have allowed foreign workers a maximum 60-day grace period after the end of their employment. This period is designed to give workers time to find another employer to sponsor them or to change their immigration status. As USCIS explains: “Regulations permit a discretionary grace period that allows workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, or TN classifications (and their dependents) to be considered as having maintained status in that same classification after the end of employment for up to 60 consecutive calendar days or until the end of the authorised nonimmigrant validity period, whichever is shorter.”
Workers also have the option to preserve their stay by filing for a change of status, adjustment of status, or compelling circumstances employment authorisation document, or by being the beneficiary of a valid petition to change employer before their visa expires. The proposed removal of this grace period would eliminate these options, making it much harder for workers to transition between jobs or legal statuses.
Broader Context of US Visa Policy Tightening
This proposal comes amid a broader trend of tightening US immigration and visa policies. In a related development, Legit.ng earlier reported that the administration of US President Donald Trump is set to expand social media screening to include foreign journalists applying for visas to work in the country. This signals another tightening of America's immigration and visa vetting process.
The reported policy would extend existing 'online presence vetting' requirements to foreign media representatives, adding them to a growing list of visa applicants whose social media activity is scrutinised before they are allowed into the United States. These measures reflect a more restrictive approach to immigration, which could have wide-ranging implications for international workers, students, and professionals seeking to enter or remain in the US.
Potential Consequences for Employers and the Economy
The elimination of the grace period could also have significant implications for US employers who depend on foreign workers to fill specialised roles. Without the ability to retain workers during transitions, companies may face increased administrative burdens and potential disruptions to their operations. Furthermore, the policy could make the US a less attractive destination for global talent, prompting skilled workers to consider other countries with more favourable immigration policies.
As the proposal moves through the review process, stakeholders, including businesses, immigration advocates, and affected workers, are expected to voice their opinions during the public comment period. The outcome of this proposal will be closely watched, as it could set a precedent for future immigration policy changes.
