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Back to 2026-08-29📊 Economy

Why is the US proposing a sudden crackdown on H-1B tech workers?

29 Aug6 min read· 📷 Duy Ngô

The US is considering a proposal to eliminate the 60-day grace period for laid-off foreign workers. This move directly threatens thousands of Indian IT professionals, who would face immediate deportation upon losing their jobs.

60 days

Current Visa Grace Period

Pre-2017 Grace Period: 0 days60 days

⏳ Time Machine

How today’s news fits into the bigger picture

  1. 2001

    Dot-Com Bust Deportations

    Tech sector crash forces thousands of Indian H-1B workers out of the US with no grace period.

  2. 2017

    Grace Period Introduced

    US introduces the 60-day buffer, granting laid-off workers a crucial search window.

  3. 2025

    Remittances Hit Record

    Global remittances to India reach $115 billion, largely driven by US-based professionals.

  4. Today

    US DHS reviews a proposal to end the H-1B 60-day grace period.

  5. What happens next?

    A public comment process will decide whether the final rule is implemented in 2027.

The US Department of Homeland Security (DHS) is reviewing a proposal that could eliminate the 60-day grace period currently granted to foreign workers, particularly those on H-1B visas. Introduced in 2017, this grace period allows laid-off workers a two-month window to find a new employer or transition to a different visa category. If revoked, Indian IT professionals—who comprise the vast majority of H-1B holders—would face immediate deportation upon job loss. This policy change would inject massive instability into the US tech job market, which has already seen significant restructuring and layoffs over the past year. For the Indian IT sector, which relies heavily on deploying talent to the US, this regulatory shift could disrupt client deliveries and deter skilled professionals from seeking overseas assignments, ultimately impacting bilateral remittance flows and corporate hiring strategies.

💭 If you're wondering…

It is a non-immigrant US visa that allows American companies to employ foreign workers in specialty occupations that require theoretical or technical expertise, highly utilized by Indian IT professionals.

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Official sources

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