US Government Reviews OPT Programme for International Students

The United States government is reviewing the Optional Practical Training (OPT) programme for international students, placing it at the centre of a growing dispute over immigration, labour markets, and taxation.

The debate over foreign workers in the United States has shifted from the H-1B visa system to OPT, a programme that allows international students to work in the country after completing their studies. Policymakers are now examining whether the scheme affects job opportunities for American graduates and whether it provides financial advantages to employers that hire foreign students.

The administration of Donald Trump had already introduced changes to the H-1B visa programme. These included a wage-based selection system and a petition fee of $100,000 per worker. The measures were intended to discourage companies from hiring lower-paid foreign employees. 

Attention has now turned to OPT, which allows holders of the F‑1 visa to work in the United States for up to one year after graduation. Students who complete degrees in science, technology, engineering, or mathematics can extend this period by an additional 24 months.

In November 2025, Eric Schmitt asked the United States Department of Homeland Security to conduct a full review of the programme. He argued that OPT allows companies to hire foreign graduates at lower cost and described it as a source of inexpensive labour created without approval from Congress. 

The department’s secretary, Kristi Noem, said officials would examine whether the programme is consistent with the administration’s “America First” immigration policies. Criticism of OPT has increased in recent years. Employers who hire participants are exempt from certain federal payroll taxes, a benefit estimated at about 8 percent per worker. 

A study published in 2024 by the Center for Immigration Studies estimated that the exemption reduces federal revenue by around $4 billion each year. Chuck Grassley has also argued that the programme may create national security concerns, particularly because many participants from China work in sensitive science and technology fields.

Members of Congress have introduced legislation aimed at changing the programme. Paul Gosar proposed the Fairness for High-Skilled Americans Act, which would eliminate OPT. Another proposal, the Dignity Act, would require participants’ wages to be subject to Social Security and Medicare taxes. Supporters of these measures say the current system benefits large companies and universities more than domestic workers.

Participation in OPT has grown significantly. In 2024, more than 418,000 international students were authorised to work under the programme. This represented over a quarter of all holders of the F‑1 visa and M‑1 visa student visas. Most participants come from Asia, with students from India and China accounting for nearly 60 per cent of the total. 

Many graduates work in science and technology fields and are employed by major technology companies such as Amazon, Google, Microsoft, and Meta, as well as large university systems.