In an update provided on Thursday, the OIRA website indicated that the proposal (RIN: 1615-AD22) had cleared review. (Photo: OIRA website)

US plans to scrap 60-day H-1B grace period

The plan, which is set to affect Indian workers in the United States, proposes to eliminate the 60-day grace period for certain foreign workers after their job ends.

The current regulation protects several employment-based categories, including H-1B, E-1, E-2, E-3, L-1, O-1, and their qualifying dependents. However, DHS is still required to publish the proposal, receive public comments, and finalise the regulation till any change can be implemented.

What happens to H-1B workers after job loss?

Since the plan has not been published, its full provisions remain unavailable, and the 60-day grace period continues to be in effect. The current rule became effective January 2017 as a broader regulation that covers high-skilled immigrant and non-immigrant workers.

The grace-period window allows eligible workers to stay in the United States for up to two months after their employment with a company ends, or until their authorised stay in the country expires, whichever comes earlier. The 60-day period allows the employee whose job has ended to obtain another sponsored position, apply for a different immigration classification, or prepare to exit the United States, American digital media organisation Newsweek reported.

Why H-1B rule matters to Indian workers?

H-1B visa programme allows US companies to hire foreign workers for specialised occupations that require advanced knowledge.

Since Indian workers have a sizeable presence in the US, any change in the H-1B visa programme is poised to have a disproportionate impact on Indian professionals. According to official US figures, in fiscal 2024, 71 per cent of approved H-1B petitions were for workers who were born in India.

US plans another H-1B fee hike

In another major overhaul, the Trump administration is planning to hike the H-1B visa fee to $103,265, making it expensive for employers to hire skilled foreign workers under the programme.

This is the second attempt by the US government in one year to hike the H-1B visa fee cap, after introducing a $100,000 payment requirement for certain H-1B workers outside the US that was struck down by courts.