The White House has finalized its assessment of the proposal to abolish the 60-day grace period that permitted foreign workers, primarily those on H-1B visas , to seek new employment following job loss.
Should the proposal be finalized, it would remove the 60-day grace period currently granted to specific principal nonimmigrants and their dependents in the event that the principal’s employment ends prior to the expiration of their authorized stay. The subsequent phase for the proposal involves its publication in the Federal Register, accompanied by a public comment period that typically lasts between 30 to 60 days. The 60-day grace period was established in 2017 to permit foreign workers and their dependents to remain in the United States while they seek new employment following a job loss. The regulation pertains to nonimmigrant visa holders and their dependents in the E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN categories.
The precise details of the regulation will remain undisclosed until the publication occurs. Immigration consultants stated that the Department of Homeland Security possesses the authority to reduce or deny the grace period, although such actions have been infrequent. Additionally, the grace period enables U.S. employers to more effectively manage employment transitions for both current and newly hired nonimmigrant workers.
This proposal was submitted by the Department of Homeland Security for evaluation by the Office of Management and Budget earlier this month, and specific details have not yet been disclosed.
Concerns Over Proposed Changes to H-1B Visa Grace Period
The Indian-American population in the United States is estimated to be 5.2 million, with Indian nationals comprising 71 percent of all H-1B employment visa recipients for the fiscal year 2024.
Ajay Jain Bhutoria, a former advisor to the White House, has voiced strong opposition to a proposed regulation that would eliminate the 60-day grace period currently granted to holders of H-1B, L-1, and O-1 nonimmigrant visas following termination. Instead, he advocates for extending this grace period to 180 days.
Bhutoria argues that removing the 60-day grace period would be detrimental to high-skilled workers who suddenly lose their jobs. He emphasized, “Eliminating the 60-day grace period is both inhumane and unworkable. When a high-skilled worker faces a sudden termination, 60 days is already dangerously short. Stripping away this protection entirely leaves thousands of law-abiding individuals with zero time to wrap up their lives.”
He further highlighted the potential chaos faced by families who may find themselves displaced without any fault of their own, despite years of contributions to the country. “People will not even have the time required to manage their leases, transition their children out of schools, or handle personal affairs,” Bhutoria noted.
