The proposed rule, published by the US Department of Homeland Security (DHS) in the Federal Register on Thursday, would require H-1B and some other temporary work visa holders to leave the country when their employment ends.

The move could disrupt major US technology companies that rely heavily on skilled foreign workers and is the latest effort by President Donald Trump's administration to tighten legal immigration 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 US missions worldwide while implementing a new training programme.

DHS acknowledged that companies could face some disruption under the proposed changes but argued that affected positions could instead be filled by American workers.

The department said foreign workers who leave the country could potentially return if an employer later files a new petition on their behalf.

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

H-1B workers face shorter transition period

The 60-day grace period was introduced in 2017 and allows foreign workers to look for another job or arrange their departure after losing employment.

The period can also give workers time to sell a home, withdraw children from school and organise other personal affairs before leaving the US.

H-1B visas were created by Congress in 1990 and are particularly important to technology companies that recruit skilled workers from countries including India and China.

The visa programme allows companies to employ foreign workers in specialised roles where employers may struggle to find sufficiently qualified workers in the US.

Major H-1B sponsors include consultancy firms such as Deloitte, PwC and Ernst & Young, as well as outsourcing companies including Tata Consultancy Services, Infosys, HCL Tech and LTIMindtree.

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

Other visa categories could also be affected

The proposed rule would not be limited to H-1B workers.

It would also apply to E-1 international traders, E-2 commercial vehicle operators, L-1 executives and managers working for international companies, O-1 visa holders with "extraordinary ability" in fields including science, sports or the arts, and TN professional workers.

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

The proposal is not yet in effect. It will undergo a two-month public comment period before the administration can move forward with the rule.