Indian technology professionals working in the United States on H-1B visas could face a significantly tougher situation after a job loss if a new Trump administration proposal becomes final.

The US Department of Homeland Security (DHS) has proposed eliminating the 60-day grace period that currently allows eligible H-1B workers and certain other temporary visa holders to remain in the country after their employment ends. The proposal would fundamentally change the short window many foreign workers rely on to find a new employer, change immigration status or prepare to leave the US.

The proposal is particularly significant for Indian professionals because they represent the largest share of H-1B beneficiaries.

What is the 60-day H-1B grace period?

The grace period was introduced in 2017. Under the current system, an eligible H-1B worker whose employment ends can generally remain in the US for up to 60 days—or until the end of their authorised validity period, if earlier.

That time can be used to search for another job, have a new employer file the required paperwork, explore a change of status or make arrangements to leave the country.

For someone who has suddenly lost a job, two months can make a major difference.

Finding a new employer willing to sponsor an H-1B worker can take time. Workers may also need to deal with housing, healthcare, school arrangements for children and other practical matters before leaving the country.

What would change under Trump’s proposal?

If the proposed rule takes effect, the 60-day discretionary grace period would be removed.

In practical terms, an H-1B worker whose employment ends could no longer automatically rely on those 60 days to remain in the US while looking for another sponsor.

DHS argues that eliminating the provision would restore a more direct connection between a foreign worker’s immigration status and the employment or activity that originally justified admission to the United States. The agency also says the change would reduce administrative burdens.

A worker who loses a job could therefore face the prospect of leaving the US much sooner and potentially completing the process for a new employer from outside the country.

Why Indians could be hit particularly hard

The impact on Indian professionals could be substantial because Indians dominate the H-1B programme.

US government data cited in recent reporting shows that 283,397 approved H-1B beneficiaries in fiscal year 2024 were born in India, representing roughly 71% of all approved beneficiaries.

Indian technology professionals are employed across software development, consulting, engineering, data science and other specialised occupations.

Major technology and IT-services companies also rely on H-1B workers, making immigration-policy changes an important issue not only for employees but also for employers managing skilled international talent.

Layoffs could become more stressful

The proposal comes at a time when layoffs and restructuring remain an important concern across the global technology industry.

For an American worker, losing a job generally means looking for another position while continuing to live in the country.

For an H-1B employee, immigration status is directly tied to employment. Losing the job can therefore create a second, urgent problem: maintaining legal status.

The current 60-day period provides at least some breathing room. Removing it could force foreign workers and their employers to make immigration decisions much faster.

DHS estimates that an average of 65,752 workers covered by the grace period experienced job loss or changed employers each year between 2021 and 2025. The agency’s analysis found that only a small proportion had a new employer file a sponsorship petition within the grace period.

It’s not only H-1B workers

The proposed change would extend beyond H-1B visa holders.

Reports indicate that the proposal could also affect several other temporary employment-based categories, including L-1, O-1, E-1, E-2, TN, H-1B1 and E-3 workers.

That means the potential impact could extend across multiple groups of highly skilled foreign professionals working in the US.

What happens next?

Importantly, the proposal has not yet become a final rule.

The DHS proposal is subject to a public-comment process. The administration will have to consider comments before deciding whether to finalise, modify or withdraw the measure.

Until that process is completed, the existing 60-day grace-period framework remains relevant for eligible workers.

For Indian H-1B professionals, however, the proposal is a warning that the safety net around employment-based immigration could become considerably narrower.

A major change for Indian tech workers

The 60-day period may sound short, but for an H-1B professional it can be the difference between securing a new US-sponsored position and having to leave the country.

If the proposal ultimately becomes law, companies could have to respond to layoffs involving H-1B workers much more quickly, while employees would face greater pressure to secure another sponsor almost immediately.

For Indian technology workers who have built careers, families and financial commitments in the US, the issue is therefore much bigger than a change to a visa regulation.

It could change how much time they have to recover from an unexpected job loss—and how risky it is to build a career in the US on an employment-linked visa.

Disclaimer: This article discusses a proposed US immigration rule and should not be treated as legal advice. The proposal may change before finalisation. H-1B workers should consult a qualified US immigration attorney and check official US government sources for the latest requirements and deadlines.

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