US move to end H-1B grace period may hit Indians the hardest

Washington,UPDATED: Aug 9, 2026 22:14 IST

A US proposal to end the 60-day grace period for H-1B workers after they lose their jobs could lead to severe human displacement and a loss of highly skilled talent, experts have said. They warned that the move would affect legal immigrants who use the window to find a new sponsor, change their status or make arrangements to leave the country.

The impact is likely to be felt sharply by Indians, who are among the biggest beneficiaries of H-1B visas. Indian nationals accounted for 71 per cent of all successful H-1B applicants in the 2024 fiscal year.

The US Department of Homeland Security has proposed removing the 60-day grace period that currently allows H-1B workers and certain other legal non-immigrants to remain in the US after their employment ends while they look for another option. Ajay Jain Bhutoria, a former White House adviser, said in a statement, "Scrapping the existing 60-day grace period entirely represents a severe regression that directly harms legal immigrants who have contributed significantly to the United States' technological and economic leadership."

American attorney Adrian Pandev said the grace period is also used by start-up founders who leave corporate jobs and file change-of-status petitions for their new ventures. In a post on X, he said, "Without it, the employee is incentivised to not mention anything to their current employer until the new petition is filed or even approved. That means the current employer could be finding out they are losing a team member on extremely short notice." He added, "This would impact US employers as much as employees."

Bhutoria criticised the Department of Homeland Security's proposed policy, saying, "Eliminating the 60-day grace period is inhumane and unworkable. When a worker faces a sudden termination, 60 days is already dangerously short. Stripping away this protection entirely leaves thousands of law-abiding individuals with zero time to wrap up their lives." He urged South Asian community organisations, business leaders and advocacy groups to prepare public comments once the rule is officially published in the Federal Register so that the administration hears the full impact of the proposal.

He said that during his time as an adviser to then President Joe Biden, he had proposed extending the grace period from 60 days to 180 days, citing corporate hiring practices in which technical interview rounds and visa transfer paperwork often take months. Bhutoria said, "This proposal strikes at the heart of the South Asian immigrant community and skilled workforce. I urge DHS and the administration to withdraw this proposal immediately and instead adopt a compassionate, pragmatic 180-day grace period that respects human dignity and protects America's competitive edge."

According to Bhutoria, hundreds of thousands of South Asian professionals in technology, healthcare and engineering hold H-1B status, and ending the grace period would cause extreme psychological distress, financial ruin and school disruption for children raised in the US. In sum, experts said the proposal could hurt both workers and employers, with Indians expected to be among the most affected.

With PTI Inputs

- Ends