WASHINGTON, D.C.: The Trump administration has proposed ending a 60-day grace period that allows certain foreign workers, including H-1B visa holders, to remain in the United States and find a new employer after losing their jobs.

The planned change, published September 10 in the Federal Register by the Department of Homeland Security, would require H-1B holders and some other temporary visa workers to leave the country once their employment ends.

The proposal could disrupt employers that rely heavily on foreign workers, including major U.S. technology companies.

It is the latest step by President Donald Trump's administration to tighten legal migration rules since he returned to office in January 2025. The administration has also introduced higher visa fees for skilled workers and recently paused immigrant visa appointments at U.S. missions around the world while implementing a new training program.

DHS acknowledged that companies could face some disruption under the proposed change but said affected jobs could instead be filled by U.S. workers. In some cases, foreign workers who leave could later reapply if an employer files a new petition for them.

"DHS presumes that they will either offer the same jobs to equally qualified U.S. workers or go through the I-129 petition process depending on their workforce requirement," the notice said.

The 60-day grace period has been in place since 2017 and gives foreign workers time to secure another U.S. job or prepare to leave the country, including selling a home or withdrawing children from school.

H-1B visas, created by Congress in 1990, are widely used by technology companies seeking skilled workers from countries including India and China where employers say there can be shortages of qualified U.S. candidates.

Consulting firms including Deloitte, PwC and Ernst & Young, as well as outsourcing companies such as Tata Consultancy Services, Infosys, HCL Tech and LTIMindtree, are among the top H-1B sponsors.

Lawyers at Berardi Immigration Law, which specializes in business immigration, said the proposal would "sharply compress the timeline HR teams have to manage layoffs and offboarding for foreign national employees."

The change would also apply to E-1 international trader visa holders, E-2 commercial vehicle operator visa holders, L-1 visa holders working temporarily as executives or managers for international companies, O-1 visa holders with "an extraordinary ability" in science, sports or the arts, and TN professional workers.

It would also affect H-1B1 skilled workers from Singapore and Chile and E-3 specialty workers from Australia.

The proposal is subject to a two-month public comment period before it can be enacted into law.