Visa Grace Period Proposal
DHS Proposes Ending the 60-Day Grace Period for Laid-Off Visa Workers
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Key Points
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DHS argues that ending the grace period would reduce an “administrative burden” for U.S. Citizenship and Immigration Services employees who oversee the program.
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The proposal could particularly affect technology and outsourcing companies that rely on H-1B workers from India and China, including Deloitte, PwC, Ernst & Young, Tata Consultancy Services, Infosys, HCLTech and LTIMindtree.
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Lawyers at Berardi Immigration Law said the policy would “sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees.”
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DHS said the change would restore a “direct relationship” between a worker’s immigration status and the employment supporting that status, and concluded that the negative effects of retaining the grace period outweigh its benefits to employers, workers and communities.
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H-1B visas were created by Congress in 1990 and are especially important to technology companies seeking specialized talent from India and China for positions where employers say qualified U.S. workers may be unavailable.
The Trump administration is proposing to eliminate a 60-day grace period that allows visa workers to remain in the United States after losing their jobs. DHS estimates the change would affect about 3,795 workers annually—99.2% of them H-1B visa holders—but could force the departure or relocation of more than 208,000 spouses and children. Workers would generally be considered out of status the day after employment ends unless they secure another sponsor or lawful basis to stay.
DHS argues the policy change restores pre-2017 rules and encourages hiring U.S. workers as part of a broader effort to restrict legal migration. But immigration lawyers and business groups warn the compressed timeline would force rushed decisions on layoffs, relocations, and family arrangements. The proposal enters a 60-day public-comment period before DHS decides whether to adopt it.
Who Uses the Grace Period and Why It Matters
The grace period applies to H-1B, E-1, E-2, E-3, H-1B1, L-1, O-1 and TN visa holders. Fox News reports that H-1B visas dominate the program, created by Congress in 1990 to allow employers to hire specialized talent from abroad when qualified U.S. workers are unavailable. Technology and outsourcing firms—including Deloitte, PwC, Ernst & Young, Tata Consultancy Services, Infosys, HCLTech and LTIMindtree—rely heavily on these workers, many from India and China.
Dependent spouses and children hold status tied to the principal worker's visa. Removing the grace period could force entire families to leave or relocate. NDTV Profit notes that DHS estimates over 208,000 dependents could be affected, expanding the policy from workforce decisions into housing, schooling, and family financial planning.
How Employers Would Need to Adapt Immediately
Under the current system, companies have 60 days after a worker loses employment to arrange a transfer, file a new sponsorship petition, or arrange departure. Reddy Neumann Brown PC lawyers warn the proposal would "sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees." Workers could lose status the day after termination unless they find another employer or obtain a different legal basis to stay.
Employers could reassign duties, file immediate petitions for new roles, or accelerate departures. DHS estimates roughly 3,795 workers use the grace period each year, making the operational burden concentrated but significant for companies managing foreign-national layoffs during economic downturns or restructuring.
DHS Rationale Versus Business and Legal Concerns
DHS says the change restores a "direct relationship" between a worker's immigration status and employment supporting that status. The agency argues it reduces administrative burden on USCIS staff and encourages companies to hire U.S. workers instead. DHS concluded that the benefits of eliminating the grace period outweigh costs to employers, workers, and communities.
Critics argue the policy does not establish that comparable U.S. workers are available for every specialized position. Reddy Neumann Brown PC and other immigration firms warn that employers could face temporary productivity losses, faster relocation costs, or increased sponsorship expenses rather than meaningful hiring of domestic talent. The 60-day public-comment period will test whether business groups, workers, and legal experts can shift DHS thinking before a final rule is issued.
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