End of OPT and Its Effects on U.S. Universities and Enrollment

The future of Optional Practical Training (OPT) is under heavy political pressure in the United States 🇺🇸, and the stakes are very high for universities, international students, and local economies. Some members of Congress are openly calling for a complete shutdown of OPT, including the STEM OPT extension. If that happens, the effect on American higher education would go far beyond work permits and visa rules. It would reshape who applies to U.S. universities, which programs survive, how much research gets done, and where global talent decides to build careers.

According to analysis by VisaVerge.com, OPT has become one of the main reasons international students choose the U.S. over other countries. The core attraction is simple: students can study, then work in their field for up to 3 years after graduation — 1 year of OPT plus 2 additional years of STEM OPT for approved science, technology, engineering, and math degrees.

That mix of top‑ranked universities plus post‑study work options has kept the U.S. at or near the top global study destination for decades. Now, with lawmakers attacking OPT as an unfair work program, universities and students are bracing for the possibility that this system could be sharply limited or even eliminated.

The question is not only what happens to OPT applications filed on Form I-765, but whether whole degree programs and regional economies can keep going without the international students who rely on it.

Why OPT Drives Choice of U.S. Universities

For many students from India, China, and across Asia, Africa, and Latin America, the decision to study in the U.S. is shaped by three basic points:

• Quality of education and rankings
• Access to modern labs, research groups, and industry links
• Chance to gain paid work experience after graduation

In the U.S., that third point is built mainly on OPT and STEM OPT. Under current rules, most F‑1 students can:

• Apply for 12 months of post‑completion OPT using Form I-765, Application for Employment Authorization
• If they hold a qualifying STEM degree and meet extra rules, apply for a 24‑month STEM OPT extension, which also involves a formal training plan on Form I-983 Training Plan

This creates a clear 3‑year window where graduates can work for U.S. employers, build a resume, and often try for an H‑1B work visa.

Global competitors with similar or stronger paths

• Canada 🇨🇦: Up to 3‑year Post‑Graduation Work Permit (PGWP) with clear links to permanent residence
• Australia: 2–4 year post‑study work visas depending on degree level
• United Kingdom: 2‑year Graduate Route (3 years for PhD)
• Germany: Low‑cost or free tuition plus job seeker visas and a PR‑friendly system

If OPT disappears, the U.S. would instantly lose one of its biggest selling points. Students may still value American education, but many will ask: “Why pay higher American tuition if I can’t stay to work afterward, while other countries let me study and work on a clear path to residence?”

Experts therefore expect:

• Sharp drops in international student enrollment
• Reduced interest in U.S. master’s and PhD programs
• Especially steep declines in STEM programs, which heavily rely on OPT and STEM OPT as part of their recruitment pitch

Financial dependence of universities on international enrollment

International students are not just “nice to have” for U.S. universities. In many cases, they keep entire departments and even campuses afloat.

Most public universities charge 2–3 times higher tuition to international students than to in‑state residents. That extra income often:

• Covers general budget gaps
• Funds research labs and assistantships
• Supports scholarships for domestic students
• Keeps smaller departments from closing

In STEM fields such as computer science, electrical and mechanical engineering, data science and AI, and business analytics, international students often make up the majority of the class. For many applicants, high tuition feels acceptable only if they can gain work experience on OPT and STEM OPT afterward.

If Congress shuts down OPT:

• Many STEM master’s programs may quickly lose most of their applicants
• Courses with lower domestic demand may have to shrink or close
• Universities could face large budget holes in just a few admission cycles
• Smaller and regional state universities that depend heavily on foreign tuition might face layoffs, hiring freezes, or even risk closure

For local communities where the university is a top employer, this goes far beyond student numbers. Fewer international students can mean fewer funded research projects, fewer staff positions, and reduced services across campus.

Graduate STEM programs are at highest risk

The impact would not be equal across all fields. Graduate STEM programs stand out as the most exposed.

Current patterns show:

• More than 70% of master’s students in CS/IT are international at many top programs
• More than 80% of PhD students in engineering are international at numerous institutions

These students often accept high tuition and H‑1B uncertainty because OPT/STEM OPT offers:

• Real industry experience
• Time to work toward H‑1B or other permits
• A chance to recover education costs and support families back home

If OPT is removed:

• Graduate STEM applications to U.S. universities are likely to fall sharply
• Research labs may struggle to recruit enough qualified students
• Some professors could lose funding if there are not enough graduate researchers to staff projects
• International talent that once came to the U.S. would more likely move to Canada, Europe, or Australia

This is not only about numbers. PhD students and postgraduates often drive day‑to‑day lab work. When their numbers drop, research output and innovation will slow.

Erosion of U.S. global academic competitiveness

Even before any change to OPT, the U.S. faces serious challenges:

• Rising tuition and living costs make American degrees harder to afford
• Visa policies feel unpredictable to many families abroad, especially after travel bans and frequent rule changes
• H‑1B selection odds are low, making long‑term planning difficult for students who hope to stay
• Other countries are openly trying to pull global talent away from the U.S.

Removing or severely limiting OPT could push the U.S. from first choice to third or fourth for many students.

Competing countries’ approaches:

• Canada: “Study here, work for three years, then apply for permanent residence in 2–3 years.”
• Australia: Structured post‑study work routes and regional visas
• UK: Restored and promoted Graduate Route
• Germany: Low‑cost education, English‑taught programs, and a pro‑immigrant environment for skilled workers

If OPT disappears, the effects would likely appear in:

• Global university rankings that consider internationalization and research output
• Fewer international partnerships and joint programs
• Reduced influence of U.S. universities in global academic networks

For a country that has used its university system as a soft‑power tool for decades, this would be a major shift.

Key takeaway: Removing OPT would not just alter visa rules; it would change the long‑term global standing and research capacity of U.S. higher education.

Local economic shock around major campuses

International students do much more than sit in classrooms and pay tuition. They also support local economies through:

• Renting apartments and houses
• Buying food at local grocery stores and restaurants
• Using public transportation, ride‑share, and car services
• Purchasing books, electronics, clothing, and services
• Paying university fees and using campus facilities

In states with large international student populations—California, Texas, New York, Illinois, and Massachusetts—many landlords, small business owners, and service providers depend on this demand.

Additionally, many local tech startups were founded or co‑founded by former international students who first stayed through OPT, STEM OPT, and then H‑1B or other visas. Fewer students now likely means fewer such companies later.

A steep drop in enrollment caused by an OPT shutdown would:

• Drive lower demand for student housing, pushing down rents or leaving units empty
• Force some restaurants and small shops near campuses to cut staff or close
• Reduce the number of part‑time campus jobs supported by international student fees
• Lower tax income for cities that have built services around large student populations

For regions already struggling with job losses or slow recovery, losing thousands of spending international students would worsen economic pain.

Political attacks on OPT and proposed restrictions

The political fight over OPT is real and active.

• A group of 13 Republican lawmakers sent a letter on December 4, 2025, to senior White House officials calling for a complete shutdown of OPT, describing the program as “dangerously unauthorized,” “abused,” and “costly.”
• They argue OPT circumvents the H‑1B visa cap, gives employers incentives to hire foreign graduates instead of U.S. workers because of tax advantages, and lacks a firm legal base in immigration law.

Separately, Senator Tom Cotton has introduced the OPT Fair Tax Act, which would require both OPT workers and their employers to pay Social Security and Medicare taxes (FICA), similar to regular U.S. employees. Currently, many F‑1 students on OPT are exempt from FICA taxes for a period, slightly increasing their take‑home pay and reducing payroll costs for employers.

If that bill became law:

• Employers might face higher costs for hiring recent international graduates
• Students could see lower net pay during their OPT and STEM OPT years
• The small financial edge OPT offers compared to H‑1B wages could disappear

These developments reflect a broader trend: some lawmakers want to sharply cut back on work options for foreign students, even at the risk of fewer people choosing the U.S. for higher education.

How government shutdowns intersect with OPT and STEM OPT

Government shutdowns add another layer of uncertainty to immigration processes.

• USCIS continues to accept and process OPT and STEM OPT applications during shutdowns, because these services are largely fee‑funded. Students can still file Form I‑765 and, for STEM OPT, submit their Form I‑983 training plans to their schools and SEVIS.
• However, U.S. consulates abroad may reduce services during shutdowns, delaying visa issuance or renewals and making it harder for students on OPT who travel to return in time for work.
• The Department of Labor may not process Labor Condition Applications (LCAs) in a shutdown. LCAs are required for H‑1B filings, and delays can push back H‑1B petitions that many OPT students rely on.

So even if OPT itself remains legally in place during a shutdown, the wider immigration system around it can slow down. That adds stress for graduates who depend on strict timelines, cap‑gap extensions, and quick consular processing.

For official details about OPT rules and eligibility, refer to the USCIS OPT overview page.

Anticipated response from universities and the tech industry

If Congress moves closer to an OPT shutdown, major stakeholders are expected to push back.

Likely opponents include:

• University presidents and chancellors at large public and private institutions
• Higher education associations that represent many colleges nationally
• Major tech companies and industry groups, which hire thousands of OPT and STEM OPT workers each year
• Research institutions and labs that depend on international graduate researchers

Their core message: ending OPT would not just hurt foreign students; it would harm U.S. research power, the domestic tech workforce pipeline, and long‑term economic competition with other advanced economies.

Actions they may pursue:

• Lobbying to keep or restore OPT, possibly with reforms
• Proposing a new replacement visa for U.S.‑educated international graduates if OPT is cut
• Pushing to expand the H‑1B cap or create a separate category for U.S.‑educated students to avoid the general lottery

University lobbyists and tech companies will likely use data on tuition, jobs, and research funding to argue that cutting OPT would cost the U.S. billions and reduce its innovation power.

What an OPT shutdown would mean for students, employers, and policy

From the student perspective, the threat to OPT and STEM OPT changes future planning:

• If OPT stays, the U.S. remains an attractive option despite high costs and H‑1B risk.
• If OPT ends and no replacement appears, it may be more sensible to choose Canada, the UK, Australia, or Germany instead.

For employers, especially in tech and engineering:

• OPT and STEM OPT provide a critical talent pool of recent graduates with fresh skills.
• Losing this pool would push more companies to build teams abroad or move jobs to countries that host those graduates.

For policymakers, the decision over OPT is about more than a student work program. It is about whether the U.S. continues to use its universities as gateways for global talent or turns them into short‑term training centers with no real path for graduates to contribute long term.

If Congress ends OPT without a clear replacement, the U.S. risks:

• Losing its top position as a global education destination
• Shrinking its STEM talent pipeline for universities and employers
• Weakening university research output that depends on international graduate students

Many experts and institutional leaders argue that OPT, while imperfect, has become too deeply tied to the health of American higher education to cut without a carefully planned alternative.