Trump's major blow on H-1B visa: Indians may have to leave USA?
The US Department of Homeland Security (DHS) has proposed ending the 60-day grace period after job loss.
The Trump administration is proposing a significant change for foreign workers on the H-1B visa in the United States. The Department of Homeland Security (DHS) has proposed to end the 60-day grace period that allows workers to remain in the U.S. after losing their jobs. If this proposal is implemented, H-1B visa holders who lose their jobs may lose the current option to stay in the U.S. to search for new employment.
Under current regulations, eligible H-1B visa holders can remain in the U.S. for a maximum of 60 days after their employment ends. During this time, they can look for a new employer, attempt to change their immigration status, or prepare to leave the U.S.
It is noteworthy that this 60-day grace period was introduced under regulations implemented in 2017.
DHS states that,
the proposed change will reduce administrative burdens and restore the direct link between a foreign worker's immigration status and the job that allowed them to enter the U.S.
If the proposal is finalized, employees will not have the current 60-day relief to obtain sponsorship from a new company after losing their jobs.
According to a report by Indian Express, such employees may have to leave the U.S. and complete the necessary process through a U.S. embassy or consulate, and can only return to the U.S. after securing a new job. The aim of this proposal is not specifically to target Indian workers. However, it could have a significant impact on Indian professionals, as they make up the largest share of the H-1B visa program.
affected companies may face some difficulties or disruptions in operations. However, DHS states that American workers can be hired for these jobs.
In some cases, if a foreign worker leaves the U.S., they may later apply to return if their employer applies for an H-1B visa for them again.
DHS has stated in its proposal that,
it expects companies to either hire equally qualified American workers for those jobs or attempt to rehire the foreign worker through the I-129 petition process as needed.
According to the U.S. Citizenship and Immigration Services (USCIS), in fiscal year 2024, applications from 2,83,397 beneficiaries of the H-1B visa born in India were approved, which accounted for approximately 71 percent of the total approved beneficiaries. India is significantly ahead of China in this regard.
According to DHS estimates,
between 2021 and 2025, an average of 65,752 such workers faced job loss or employer change within the 60-day grace period each year.
During this period, approximately 6 percent of workers had a new employer apply for H-1B sponsorship within the grace period. Meanwhile, about 1.7 percent applied to extend or change their status.
The impact of the proposal will not be limited to H-1B visa workers. Similar grace periods for other temporary foreign workers, such as L-1 intra-company transferees and O-1 workers, may also be affected. Changes in the regulations may also put additional pressure on companies that lay off foreign workers. Companies may be required to bear the transportation costs for the foreign worker's return to their home country in certain circumstances.
According to immigration experts, the new proposal will leave companies' HR departments with significantly less time to manage the layoff and offboarding processes for foreign workers. However, this change is not yet a final rule. After the proposal is published, DHS will allow 60 days for public comments. The administration will then review the comments received before finalizing the proposal.
Companies that employ a large number of H-1B visa workers in the U.S. include consulting firms such as Deloitte, PwC, and Ernst & Young, as well as Indian IT companies like Tata Consultancy Services (TCS), Infosys, HCL Tech, and LTI Mindtree.
If the proposal is implemented, it could make it significantly more difficult and time-constrained for thousands of foreign workers on the H-1B visa, especially a large number of Indian professionals, to remain in the U.S. after losing their jobs.
It is noteworthy that the 60-day grace period was introduced in 2017. Its purpose was to provide foreign workers with some time to find another job in the U.S. or prepare to leave the country after losing their jobs. During this time, they could make necessary arrangements such as selling their homes, sending their belongings elsewhere, or withdrawing their children from school.
The H-1B visa was introduced in 1990. The U.S. Congress created this program so that American companies could hire foreign workers for specialized and skilled positions for which there were not enough qualified American workers available.