US Senator Demands Trump End OPT Program for Foreign Students
Senator Jim Banks has called on the Trump administration to immediately terminate the Optional Practical Training (OPT) program, arguing it disadvantages American graduates and lacks Congressional authorization.
Key Takeaways
- Senator Jim Banks urges termination of the OPT program in a letter to Trump advisers.
- The program provides a 15% tax break for companies hiring foreign graduates over Americans.
- OPT lacks Congressional approval and basic worker protections, according to critics.
- Nearly 500,000 foreign workers hold OPT status, primarily in STEM fields.
The OPT Program Controversy
In a letter addressed to President Trump’s adviser Stephen Miller and DHS Secretary Kristi Noem, Senator Banks demands action to abolish the OPT program. The program allows foreign students to work for 12 months after graduation, with STEM graduates eligible for an additional 24 months.
Banks argues that companies receive a significant tax advantage when hiring foreign students over American graduates, particularly in STEM disciplines. The 15% discount comes from exemptions from Social Security and Medicare taxes for both employers and OPT workers.
“OPT authorizes 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 authorized to work in the U.S. for up to three years. The program is not authorized by Congress. It was established and has been maintained entirely by Deep State bureaucrats. Despite OPT’s lack of political legitimacy, it has dramatically reshaped America’s foreign guest worker program. Nearly 500,000 foreign workers hold OPT status and most of them work in STEM fields. More than one-third of international students in the United States have work authorization, primarily through OPT. There are nearly as many OPT holders as there are H-1B holders, yet OPT lacks even the minimal safeguards of the H-1B program. OPT permits are completely uncapped, lack a minimum wage floor, and come with no requirement that employers attempt to fill positions with American workers before hiring foreign 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.”
Impact on American Workers
Banks highlights that American STEM graduates face increasing challenges in the labor market as companies prefer hiring foreign students through the OPT program to benefit from the tax break. The senator claims this creates unfair competition for domestic workers.
Legislative Background
Earlier, Senator Tom Cotton proposed the ‘OPT Fair Tax Act’ legislation aimed at ending the FICA tax exemption for employers of foreign workers in the OPT program. If enacted, international students participating in OPT would be required to pay FICA taxes, leveling the playing field for American workers.
Banks recommends not only terminating the program but also establishing a wage floor ranging from $90,000 to $115,000 if the program continues in any form.
Broader Immigration Changes
The Trump administration plans additional restrictions on foreign students’ stays in the U.S. by changing regulations for F, J, and I visa holders from ‘duration of status’ to a ‘fixed time period.’ After completing their programs, F-1 students would have just 60 days to leave the country unless they change to another visa status like H-1B or O.
Joseph Edlow, Director of US Citizenship and Immigration Services, has also expressed concerns about the current OPT program model, indicating potential reforms ahead.
