Indian Students in US Face Deportation Risk and New Remittance Tax

New U.S. laws in 2025 raise deportation risk and impose a 1% remittance tax on Indian students. The OPT program faces possible cancellation, causing anxiety and forcing stricter compliance. Many students now explore study options in other countries due to financial and legal pressures within the U.S.

VisaVerge.com
Key takeaways

New law signed July 3, 2025 increases deportation risks and targets visa overstays for Indian students in the U.S.
The 1% remittance tax starts January 1, 2026, affecting cash transfers from F-1, H-1B, and green card holders.
The OPT program faces possible termination under Fairness for High-Skilled Americans Act, raising uncertainty among Indian students.

Indian students in the United States 🇺🇸 are facing a wave of new challenges after President Trump signed the “One Big Beautiful Bill” into law on July 3, 2025. This sweeping legislation brings tougher deportation rules, a new remittance tax, and puts the future of The Optional Practical Training (OPT) program at risk. These changes have immediate effects, raising anxiety among students and their families, and forcing many to rethink their plans for studying or working in the U.S.

Deportation Risk Rises For Indian students

Indian Students in US Face Deportation Risk and New Remittance Tax
Indian Students in US Face Deportation Risk and New Remittance Tax

The most urgent concern is the sharp increase in deportation risk. The new law gives Immigration and Customs Enforcement (ICE) an extra $170 billion to expand its operations. ICE is now focusing heavily on visa overstays and strict enforcement against students in the OPT program. Even small mistakes—like staying one day past a visa’s expiration or being late to report a job change—can now trigger deportation proceedings.

For Indian students, who make up about 270,000 of the international student population in the U.S., this is a major shift. According to analysis by VisaVerge.com, the new rules mean that “even minor administrative lapses—such as a one-day overstay or a brief delay in securing employment during OPT—can now trigger deportation proceedings.” This is a big change from past practice, where small errors often led to warnings or a chance to fix the problem.

OPT Program Under Threat

The Optional Practical Training (OPT) program is a key reason many Indian students choose to study in the United States 🇺🇸. OPT allows students to work in their field for up to 12 months after graduation, and up to 36 months for those in science, technology, engineering, or math (STEM) fields. Nearly 69,000 Indian students use OPT each year as a bridge to H-1B work visas or permanent residency.

Now, a new bill called the Fairness for High-Skilled Americans Act of 2025 threatens to end the OPT program entirely. While the bill has not yet passed, the uncertainty alone is causing worry. Students and their families are left wondering if they will be able to stay and work after graduation, or if they will have to leave the country immediately.

Strict OPT Compliance Rules

Even before any changes to OPT become law, enforcement has become much stricter. Students must now:

VisaVerge.com

Eligibility Requirements
Requirements you must meet

1
Must maintain valid F-1 visa status
Required for participation in the OPT program.

2
Must report job changes within 10 days
Any new job, job loss, or change in work location must be reported through the SEVIS portal or to the school’s Designated School Official (DSO) within 10 days.

3
Must not exceed unemployment days limit
OPT participants can only be unemployed for up to 90 days (or 150 days for STEM extensions). Going over this limit can lead to loss of status and deportation.

4
Must keep detailed employment records
Students should keep written proof of all employment, including employer name, job title, dates, hours, and supervisor contact information.

5
Must comply with new remittance tax regulations
Starting January 1, 2026, a 1% tax will be charged on money sent from the U.S. to India by F-1 student visa holders.

  • Track unemployment days closely: OPT participants can only be unemployed for up to 90 days (or 150 days for STEM extensions). Going over this limit—even by accident—can lead to loss of status and deportation.
  • Report job changes within 10 days: Any new job, job loss, or change in work location must be reported through the SEVIS portal or to the school’s Designated School Official (DSO) within 10 days.
  • Keep detailed records: Students should keep written proof of all employment, including employer name, job title, dates, hours, and supervisor contact information.
  • Monitor social media activity: U.S. authorities are now watching social media and protest activity. Students involved in protests or with controversial online posts have seen their visas revoked or their status changed.

Since May 2025, more than 69,000 Indian students on OPT have received warning letters from ICE, threatening to terminate their SEVIS records and start deportation if they do not update their employment information quickly. Over 1,200 student visa statuses have been modified, and hundreds of visas have been revoked in recent weeks.

Remittance Tax Adds Financial Strain

Starting January 1, 2026, a new 1% tax will be charged on money sent from the U.S. to India 🇮🇳 by F-1 student visa holders, H-1B workers, and green card holders if they use cash, money orders, or cashier’s checks. For example, sending $1,000 home will now cost an extra $10 in tax. This tax does not apply to students who pay full tuition without scholarships, but most Indian students rely on financial support and will be affected.

Experts like Adarsh Khandelwal from Collegify warn that “even small financial burdens can disrupt students’ ability to support families or repay loans.” Many students come from modest backgrounds and send money home to help with family expenses or pay off education loans. The new tax, though small, adds up over time and can make life harder for those already struggling.

💡 Tip
Track your unemployment days closely; OPT participants can only be unemployed for up to 90 days.

The tax currently targets cash-like transfers, but digital transfers (like bank wires or apps) may be exempt. As a result, students may switch to digital platforms, send money less often, or cut back on spending to cope with the new cost.

Growing Scrutiny and Social Media Monitoring

U.S. authorities are not only watching for visa overstays and OPT compliance. They are also monitoring social media and protest activity. Students who post about controversial topics or take part in protests have been singled out for visa revocation or deportation. This has created a climate of fear, with many students feeling they must watch what they say or do online.

Travel Warnings for H-1B and Green Card Holders

The crackdown is not limited to students. H-1B workers and green card holders are being advised to avoid international travel, as re-entry to the U.S. 🇺🇸 is now subject to much closer scrutiny. Even those with legal status may face questions or delays at the border.

Impact on Indian Students and Their Families

The combined effect of these changes is a sharp rise in anxiety and uncertainty among Indian students. Many are now reconsidering their plans to study in the U.S., especially those at mid-tier universities. Study abroad consultants report a growing shift toward Canada 🇨🇦 and Europe, where immigration rules are seen as more stable and welcoming.

For those already in the U.S., the pressure to follow every rule perfectly is intense. Students must now:

📝 Note
Starting January 1, 2026, a 1% remittance tax will apply to cash transfers to India by F-1 and H-1B visa holders.
  • Be hyper-vigilant about visa rules and deadlines
  • Keep detailed records of employment and status
  • Monitor their online activity
  • Budget for new taxes and possible loss of income

The financial strain is especially hard for students who support families back home or are paying off loans. The remittance tax, cuts to federal programs like Medicaid and SNAP, and the threat of losing OPT all add up to a much tougher environment.

Expert Advice and Support Resources

Legal and advocacy groups are urging students to take extra care. NAFSA, an association of international educators, has issued advisories for Designated School Officials (DSOs) to monitor students’ unemployment days and follow up with those at risk. Immigration lawyers recommend:

  • Tracking all periods of unemployment carefully
  • Reporting any employment change within 10 days
  • Keeping written records of all jobs and employment details
  • Consulting with a DSO or immigration attorney if nearing unemployment limits or facing compliance issues
  • Exploring legal alternatives, such as changing visa status or enrolling in a new academic program, if at risk

For those sending money home, experts suggest:

  • Checking if you are exempt from the remittance tax (full-fee-paying, no scholarships)
  • Using digital transfer platforms when possible
  • Keeping records of all remittances
  • Budgeting for the 1% surcharge starting January 1, 2026

Background: Why Indian Students Choose the U.S.

The United States 🇺🇸 has long been the top choice for Indian students seeking a global education and better job opportunities. The OPT program has been a key reason, allowing students to gain work experience and often move on to H-1B visas or permanent residency. Indian students contribute billions of dollars to the U.S. economy through tuition and living expenses.

However, the return of President Trump’s administration has brought a shift toward more restrictive immigration policies. The focus is now on reducing non-immigrant visa programs and increasing enforcement. This follows years of tightening rules, including stricter H-1B requirements and more scrutiny of student visas.

No Official Response from Indian Government

So far, the Indian government has not issued an official response to the latest changes. In the past, India has raised concerns about student welfare but has limited influence over U.S. domestic policy. Study abroad consultants and education experts in India are advising students to consider other countries with more stable immigration pathways.

What’s Next? The Future for Indian Students in the U.S.

Looking ahead, the future remains uncertain for Indian students in the United States 🇺🇸. Key points to watch include:

  • OPT Program: If the Fairness for High-Skilled Americans Act passes, the OPT program could end, removing a critical pathway for post-graduation work.
  • Remittance Tax: Students may adapt by using digital transfer methods or sending money less often, but the financial burden will remain for many.
  • Enforcement: ICE is expected to continue aggressive operations, focusing on visa overstays and OPT compliance.
  • Student Mobility: More Indian students may choose Canada 🇨🇦, Europe, or Australia if U.S. policies remain restrictive.
  • Policy Response: While advocacy groups may push for change, U.S. domestic politics will likely shape the outcome.
⚠️ Important
Even a one-day visa overstay can now trigger deportation proceedings under the new law.

Frequently Asked Questions

  • What if I overstay my visa by one day? Under the new law, even a one-day overstay can lead to deportation.
  • How does the remittance tax work? A 1% tax applies to cash-like transfers to India 🇮🇳 by F-1, H-1B, and green card holders, starting January 1, 2026. Full-fee-paying students are exempt.
  • What should I do if I get a warning from ICE? Contact your DSO and an immigration attorney right away. Update your SEVIS record and gather all employment documents.
  • Is OPT being cancelled? Not yet, but a bill to end it is under consideration. Stay updated on legislative news.
  • Where can I get help? Reach out to your university’s international office, immigration attorneys, or Indian consular services.

Official Resources

For the latest rules and guidance, students should visit the U.S. Citizenship and Immigration Services (USCIS) website, which provides up-to-date information on visa and OPT requirements. The ICE Student and Exchange Visitor Program (SEVP) also manages SEVIS records and offers compliance tips. NAFSA, the Association of International Educators, is another good source for advisories and resources.

Action Steps for Indian Students

If you are an Indian student in the U.S., here’s what you should do now:

  1. Track your unemployment days and make sure you do not exceed the allowed limit.
  2. Report all employment changes within 10 days through the SEVIS portal or your DSO.
  3. Keep detailed records of your jobs and employment history.
  4. Be careful with your online activity and avoid controversial posts or protest involvement.
  5. Plan for the remittance tax by using digital transfers and budgeting for the extra cost.
  6. Stay informed about legislative changes that could affect OPT or other visa programs.
  7. Seek help from your school’s international office, legal experts, or Indian consular services if you face any problems.

Conclusion

The landscape for Indian students in the United States 🇺🇸 has changed dramatically in 2025. With stricter deportation rules, a new remittance tax, and the possible end of the OPT program, students face more uncertainty and pressure than ever before. Many are now looking to other countries for their education and career goals. For those who remain, strict compliance with visa rules and careful planning are more important than ever. As reported by VisaVerge.com, these changes have created a climate of fear and uncertainty, but with the right information and support, students can still find ways to succeed and protect their future.

Learn Today

Optional Practical Training (OPT) → A U.S. program allowing international students to work up to 12-36 months post-graduation.
Immigration and Customs Enforcement (ICE) → U.S. agency enforcing immigration laws, including deportations and visa compliance.
SEVIS → Student and Exchange Visitor Information System tracking international student visas and employment.
Remittance Tax → A new 1% tax on cash-like money transfers from the U.S. to India starting 2026.
Fairness for High-Skilled Americans Act → Proposed bill threatening to end the OPT program for international students.

This Article in a Nutshell

Indian students in the U.S. face rising deportation risks and financial strain from July 2025 changes. OPT program may end, with new remittance taxes adding pressure. Digital remittances and strict compliance now essential. Students consider alternative countries as new laws create uncertainty, raising fears about study and work futures in America.
— By VisaVerge.com

Share This Article
Shashank Singh
Breaking News Reporter
Follow:
As a Breaking News Reporter at VisaVerge.com, Shashank Singh is dedicated to delivering timely and accurate news on the latest developments in immigration and travel. His quick response to emerging stories and ability to present complex information in an understandable format makes him a valuable asset. Shashank's reporting keeps VisaVerge's readers at the forefront of the most current and impactful news in the field.
Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments