US Considers Stripping H-1B Grace Period for Laid-Off Workers

The Office of Management and Budget is reviewing the potential policy shift, which would dismantle the flexibility introduced in 2017. That regulation originally granted non-immigrant workers in categories such as H-1B, L-1, and O-1 a two-month window to secure new employment or adjust their status before facing deportation. By removing this buffer, the administration would effectively eliminate the safety net for workers whose tenure ends before their authorized stay expires.

This development carries significant weight for the Indian diaspora, which remains the primary user of the H-1B program. Data from US Citizenship and Immigration Services indicates that Indian nationals accounted for 71 percent of all approved H-1B petitions during the 2024 fiscal year. With over 5.2 million people of Indian origin residing in the United States, any contraction of these employment-based visa protections threatens to destabilize a substantial portion of the high-skilled labor force.