OPT under threat: US Senator pushes Trump to terminate student work rule

US Senator Jim Banks has written to senior Trump officials seeking to abolish the Optional Practical Training (OPT) programme, claiming it unfairly benefits foreign students, including Indians.

In a move that could affect thousands of Indian students studying in the United States, Senator Jim Banks has urged the Trump administration to terminate the Optional Practical Training (OPT) programme. In a letter to President Trump’s adviser Stephen Miller and Homeland Security Secretary Kristi Noem, Banks has called for immediate action to abolish the policy, according to a report by the right-wing outlet Breitbart News.

 

What the letter says

 

The letter, obtained by Breitbart, calls on President Donald Trump to end the OPT scheme, which currently allows foreign graduates to work in the United States for up to a year after completing their studies. Those in science, technology, engineering, and mathematics (STEM) fields are eligible for an additional 24 months of work authorisation under the STEM OPT extension.

 

 

“OPT authorises international students to work in the United States for up to one year after graduation for each degree they receive from an institution of higher education. STEM graduates are authorised to work in the U.S. for up to three years. The programme is not authorised by Congress. It was established and has been maintained entirely by Deep State bureaucrats,” said the letter as reported by Breitbart News.

 

Banks argued that the policy has “dramatically reshaped America’s foreign guest worker programme” without legislative approval. “Nearly 500,000 foreign workers hold OPT status and most of them work in STEM fields,” he wrote. “There are nearly as many OPT holders as there are H-1B holders, yet OPT lacks even the minimal safeguards of the H-1B programme.”

 

What are the tax and labour concerns?

 

Under OPT, employers are not required to pay Social Security and Medicare (FICA) taxes for foreign workers, giving them roughly a 15 per cent cost advantage over hiring American graduates. Banks claimed this tax exemption encourages firms to hire international students instead of local workers.

 

“Employers actually get a 15% discount for hiring an OPT holder, as both employers and OPT workers are generally exempt from Social Security and Medicare taxes,” he said. The senator also pushed for reforms, including imposing a wage floor between $90,000 and $115,000 for OPT workers.

 

What reforms have been proposed before?

 

Senator Tom Cotton had earlier proposed the ‘OPT Fair Tax Act’, which would end the FICA tax exemption for employers of foreign students working under the OPT scheme. If passed, the act would require both employers and participants in the programme to contribute to these taxes, removing the current tax-free benefit and bringing foreign graduates in line with American workers.

 

What other immigration changes are being considered?

 

Joseph Edlow, Director of US Citizenship and Immigration Services, has also raised concerns about how the programme operates. The Trump administration has been exploring additional restrictions on international students, including replacing the current “duration of status” rule for F, J, and I visa holders with a fixed time period. Under the proposed change, F-1 students would need to leave the country within 60 days of completing their studies unless they transition to another visa category, such as H-1B or O.