The US Optional Practical Training (OPT) program faces termination calls, new tax proposals and stricter rules for international students.

International students studying in the US can gain working experience through the popular Optional Practical Training (OPT) program, which allows them to work both during and after their studies.

The OPT is a temporary employment program for F-1 students, allowing up to 12 months of authorization before and after their academic studies, with pre-completion OPT periods deducted from the available post-completion OPT period.

STEM OPT is a 24-month extension of OPT for foreign students with STEM degrees. One needs an Employment Authorization Document (EAD) from U.S. Citizenship and Immigration Services to start working under OPT program.

In 2024, 194,554 foreign students obtained work authorization through OPT, 95,384 through STEM OPT, and 130,586 through CPT.

There is bad news for foreign students looking to go to the US and gain work experience under the OPT program.

The Trump administration is advocating for the termination of the Optional Practical Training (OPT) program, with proposals being put forth by lawmakers and US administrators.

Ending the OPT Program

Jessica Vaughan, Director of Policy Studies at the Center, has criticized the current Optional Practical Training program and suggested that Congress consider managing visa categories more tightly, reducing or eliminating them.

Joseph Edlow, who has raised concerns about the US Optional Practical Training program, is set to become the Director of US Citizenship and Immigration Services.

Edlow had argued that USCIS should remove OPT employment authorizations for F1 students beyond school, as the Act does not provide for such authorization.

Tax on Earnings

US lawmakers propose taxing international students’ earnings from the Optional Practical Training (OPT) program, which currently exempts them from FICA taxes, if passed.

The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.

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Warnings Issued

F-1 students in Optional Practical Training have been issued warning notices by ICE for over 90 days without reporting their job status.

Students who have been participating in Optional Practical Training for over 90 days without reporting employer information are advised by SEVP to update their SEVIS record, else face the risk of deportation.

OPT Program Fake Payrolls

The US government is implementing stricter regulations against employers issuing fake payrolls to show foreign students on Optional Practical Training (OPT) as employed, even when no real job exists.

This is aimed at stopping misuse of the program and preventing visa troubles for those relying on such fabricated work arrangements.

USCIS rules clearly state that submitting false payroll records is considered fraud, and such actions could lead to the cancellation of an I-20 form. The I-20 form is a U.S. immigration document issued by SEVP-certified schools, enabling international students to study in the U.S. with an F-1 or M-1 visa, confirming acceptance into a program and meeting financial requirements. (Financial Express)