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US mulls removing grace period for H-1B workers facing job loss

A proposed change to US immigration policy could eliminate the 60-day employment buffer currently available to H-1B visa holders who lose their jobs. The modification would tighten conditions for foreign workers on temporary employment visas.

LSN India · 31 August 2026

US mulls removing grace period for H-1B workers facing job loss

US authorities are considering scrapping the 60-day grace period that allows H-1B visa holders to remain in the country after losing employment, according to policy discussions in Washington. The safety net has historically given foreign workers a window to secure new sponsorship or arrange departure without immediately falling into unlawful status.

Under current regulations, H-1B visa holders—primarily skilled professionals in technology, healthcare, and other sectors—can remain in the United States for up to 60 days after job termination while seeking alternative employment or preparing to leave. This provision has been a critical protection for Indian professionals and workers from other nations who comprise a significant portion of the H-1B workforce.

If implemented, the proposed change would require visa holders to either secure new employment sponsorship immediately or depart the country without the current grace period. Proponents argue the modification would ensure stricter compliance with visa conditions, while critics contend it would place undue pressure on foreign workers and potentially harm US employers seeking talent.

The H-1B program remains a contentious issue in US immigration policy, with ongoing debate about its impact on domestic employment and wage levels. India has traditionally been the largest source of H-1B visa recipients, with technology and business process outsourcing sectors heavily reliant on the visa category.