Trump administration proposes ending the 60-day job-loss grace period for H-1B workers

A proposed immediate departure rule

The Trump administration proposed eliminating the 60-day grace period that allows many employment-linked visa holders to remain in the United States after losing their jobs, Reuters reported on September 10. Under the draft Department of Homeland Security rule, affected workers would generally need to depart when the employment supporting their immigration status ends unless they obtain another lawful basis to stay. The proposal has not yet taken effect and must pass through a two-month public-comment period.

The change would prominently affect H-1B workers, who are sponsored for specialist jobs and are heavily represented in technology, consulting and outsourcing. The current grace period gives a dismissed worker time to find a new sponsoring employer, change status or organise a departure. Removing it would compress those decisions into the period immediately surrounding a job loss, making layoffs more consequential for workers and their dependants.

The scope extends beyond H-1B visas

Reuters reported that the proposal also covers E-1 treaty traders, E-2 investors, L-1 intracompany transferees, O-1 workers with recognised expertise and TN professionals. H-1B1 workers from Singapore and Chile and E-3 specialty workers from Australia would also be affected. Employers could still file new petitions in some circumstances, but a worker’s ability to remain while seeking another position would be sharply reduced.

DHS argued in the draft that employers could hire comparably qualified American workers, redistribute duties or initiate a new petition process. It acknowledged that some organisations might experience temporary productivity losses. The practical effect would vary by industry: large employers may have immigration teams capable of rapid transfers, while start-ups, smaller companies and workers facing sudden layoffs would have less room to navigate the process.

Part of a broader H-1B restructuring

The proposal follows earlier administration measures designed to narrow or reshape skilled-worker admissions. A White House proclamation issued in September 2025 required a $100,000 payment with certain new H-1B petitions from abroad, allowed national-interest exceptions and directed agencies to prioritise highly paid and highly skilled applicants. The administration framed those steps as protection for US wages and employment.

The comment process is now the immediate checkpoint. DHS can revise the rule in response to legal, economic and administrative objections before issuing a final version. Employers will watch for transition provisions and treatment of pending petitions, while affected workers will need clarity on precisely when status ends. Litigation is also possible if opponents argue that the agency has not adequately assessed reliance interests or workforce disruption.