The Department of Homeland Security proposed ending the 60-day grace period for certain temporary workers, including H-1B visa holders, meaning they would need to leave the U.S. unless they secure new sponsorship or employment.

The rule, published in the Federal Register, would shorten and tighten the window for affected workers to find new sponsorship or depart, aligning with statutory provisions and restoring the expectation of departure.

The rule is not final and will undergo a two-month public comment period before a final decision is made.

Next steps involve reviewing public comments with the possibility of issuing a final rule after consideration of feedback.

Critics warn the measure could disrupt talent pipelines and place added pressure on employers to quickly sponsor alternative positions for affected workers.

If enacted, the change could increase uncertainty for skilled foreign professionals and affect diversity in the U.S. tech workforce.

Advocates argue the change would reduce unauthorized stays and create more predictable employment-based immigration processes.

The rule would apply to other visa categories beyond H-1B, including E-1, E-2, L-1, O-1, TN, H-1B1 (Singapore/Chile), and E-3 (Australia).

A two-month public comment period is planned before finalizing the rule, with implications for those visa holders across these categories.

H-1B visas are pivotal for tech firms recruiting skilled workers from countries like India and China, and the proposal could impact major sponsors such as Deloitte, PwC, EY, Tata Consultancy Services, Infosys, HCLTech, and LTIMindtree.

The change could significantly affect Indian technology professionals and the U.S. tech and services sectors that rely on H-1B workers.