The Trump administration has officially proposed removing the 60-day grace period given to H-1B visa holders and other temporary work visa holders who lose their jobs. If finalized, this rule change would require these workers to leave the United States immediately upon termination of their employment. The proposal, published by the U.S. Department of Homeland Security (DHS) on September 10, 2026, marks another significant shift in legal migration policy under President Donald Trump.
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## What the Change Means
Since 2017, foreign workers with H-1B status have enjoyed a 60-day grace period that allows time to:
– Find a new employer to sponsor their visa
– Transition their affairs, like selling property or moving children from school
– Prepare for departure if they can’t secure new employment
Under the proposed rule, this grace period would be abolished. Instead, as soon as the employment tied to their visa ends, these workers would be required to depart the U.S. immediately.
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## Which Visas Would Be Affected?
The DHS proposal would include H-1B and several other temporary work visa categories. Among those impacted are:
– E-1 visas for international traders
– E-2 commercial operator visas
– L-1 for executives or managers under international corporations
– O-1 designations for individuals with “extraordinary ability” in fields such as arts, sciences, or sports
– TN status for professionals under trade agreements
Also included are:
– H-1B1 visa holders from Singapore and Chile
– E-3 visa holders from Australia
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## Administration’s Rationale and Industry Reaction
Officials at DHS argue the proposal would create opportunities for U.S. workers. The agency presumes that employers losing H-1B or equivalent foreign employees would either:
– Offer openings to equally qualified U.S. citizens
– Submit new I-129 petitions if temporary foreign labor remains necessary
Still, industry experts warn the regulation could introduce significant operational challenges. Berardi Immigration Law, specializing in business immigration, stated the proposal would sharply compress the window that HR departments have to manage layoffs and offboarding for foreign national employees.
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## Broader Context of Policy Shifts
This is part of a broader effort by President Trump’s administration to tighten the U.S. immigration system, particularly around employment-based visas. Additional changes introduced since Trump took office in January 2025 include:
– Higher visa fees for skilled workers
– Suspended immigrant visa appointment scheduling at U.S. missions globally during rollout of a new training program
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## Possible Impacts on Tech and Outsourcing Sectors
The immediate removal of the grace period could disrupt operations at companies heavily dependent on foreign tech talent. Major H-1B sponsors—consulting firms like Deloitte, PwC, and Ernst & Young, as well as outsourcing giants such as Tata Consultancy Services, Infosys, HCL Tech, and LTIMindtree—might face new risks related to:
– Worker turnover
– Compliance burdens
– Potential gaps in staffing when visa holders must leave immediately after job loss
These firms have long relied on the flexibility the grace period provides, especially during transitions involving layoffs or contract changes.
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## Policy Timeline and Next Steps
This proposed regulation has been published in the Federal Register. Before it can become law, it will undergo a two-month public comment period during which stakeholders can provide feedback. Only after this consultation phase can the rule be enacted.
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## Key Dates
| Date | Event |
|——|——-|
| Since 2017 | 60-day grace period has been in place for certain visa holders |
| September 10, 2026 | DHS published the proposed rule to end the grace period |
| Two-month period following publication | Open public comment period before rule may be finalized |
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This regulatory proposal significantly tightens conditions for H-1B and other skilled temporary visa holders who lose employment. With the grace period removed, workers will face immediate consequences unless new sponsoring employment or other immigration relief is secured. The proposal’s outcome will depend heavily on both public feedback and legal considerations during the rulemaking process.
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