The Trump administration is moving to end the Optional Practical Training (OPT) program, a key pathway for international students to gain U.S. work experience. Lawmakers are also proposing new taxes on OPT earnings. Meanwhile, stricter enforcement from ICE and USCIS warns against misuse, leaving nearly 300,000 foreign students relying on OPT and STEM OPT uncertain about their future.
What is OPT?
The Optional Practical Training (OPT) program allows F-1 students in the U.S. to gain temporary employment for up to 12 months, either during or after their studies. STEM graduates can apply for a 24-month extension, commonly called STEM OPT. To work under OPT, students must secure an Employment Authorization Document (EAD) from U.S. Citizenship and Immigration Services (USCIS).
In 2024, around 194,554 students used OPT, 95,384 benefited from STEM OPT, and 130,586 worked under CPT (Curricular Practical Training).
Calls for Termination
The Trump administration is advocating for ending OPT, with policy experts like Jessica Vaughan urging tighter controls or elimination of certain visa categories. Joseph Edlow, set to lead USCIS, has also argued that OPT employment is not authorized under U.S. law for students after graduation. This signals a policy shift that could significantly impact foreign graduates.
Proposed Tax Changes
Currently, OPT participants are exempt from FICA taxes (Social Security and Medicare), unlike U.S. workers. Lawmakers are now pushing for this exemption to be removed. If passed, students and employers would each face:
- 6.2% Social Security tax
- 1.45% Medicare tax
This would raise the cost of hiring OPT students and reduce their take-home pay.
Enforcement and Compliance Warnings
Immigration authorities have begun tightening enforcement on OPT participants. ICE has issued warning notices to students who have gone over 90 days without reporting an employer in the SEVIS system. Failure to update records could result in deportation.
Additionally, USCIS is cracking down on fraudulent practices, such as employers issuing fake payrolls to make students appear employed. Submitting such records is considered fraud and could lead to the cancellation of the I-20 form, jeopardizing legal student status.
What Lies Ahead?
The uncertainty around OPT is creating anxiety among Indian and other international students who rely on the program for U.S. work experience. With nearly 300,000 students dependent on OPT and STEM OPT, its potential termination or restructuring could reshape America’s appeal as a study destination.
