OPT program under attack as lawmakers push termination and tighter rules

(UNITED STATES) The Optional Practical Training program for international students remains in place as the new academic year begins, but 2025 has brought the most serious political pressure it has faced in more than a decade. A fresh round of termination proposals in Congress, new tax legislation aimed at ending payroll tax relief for OPT, and tighter federal rules have combined to create real uncertainty for students, universities, and employers.

As of August 24, 2025, the program is still operating and applications are being accepted on normal timelines. But the policy fight now underway could reshape how graduates work in the United States 🇺🇸 in the months ahead.

Legislative pressure: bills and arguments

At the center of the conflict is the Fairness for High-Skilled Americans Act of 2025 (H.R. 2315), reintroduced with the direct goal of abolishing OPT and any successor work programs unless Congress explicitly authorizes them. Supporters include Rep. Paul Gosar (R-AZ) and USCIS Director Joseph Edlow, who argue OPT:

• “Undercuts American workers”
• Acts as a “workaround for cheaper labor”
• Lets companies avoid annual limits on H-1B visas

Jessica Vaughan of the Center for Immigration Studies echoed these points in a June 25, 2025 congressional hearing, urging lawmakers to end or sharply restrict OPT because of concerns tied to fraud, diploma mills, and unauthorized employment.

Organized opposition

Opposition is broad and organized. Universities, business associations, and international education advocates warn that ending OPT would:

• Weaken the United States’ position in the competition for global STEM talent
• Damage the country’s innovation pipeline
• Hurt small companies and startups that rely on OPT graduates for early-stage technical roles

John Evans of Catalyst Gem summarized business sentiment, saying the “likelihood of this bill advancing in Congress is extremely low,” pointing to strong demand for skilled workers and bipartisan resistance to outright termination.

Contextual labor data:

• In April 2025, U.S. employers had 7.6 million job openings
• Analysts project roughly 1.1 million new jobs in STEM fields over the next decade — more than domestic supply is expected to cover

Tax front: the DIGNITY Act and payroll taxes

A second major front is taxation. The DIGNITY Act of 2025, introduced in July by Congresswomen María Elvira Salazar (R-FL) and Veronica Escobar (D-TX), proposes to end the long-standing FICA exemption for most F-1 students on OPT.

• FICA funds Social Security and Medicare
• Many F-1 students in their first five calendar years in the U.S. do not pay these payroll taxes when working under OPT today

If the DIGNITY Act passes, students and their employers would owe the full 15.3% payroll tax. Example impact:

• For a graduate earning $40,000 per year, the employee share of FICA (~7.65%) would equal about $3,060 in new taxes from the student’s paycheck; the employer would match the other half.

The DIGNITY Act also includes other reforms:

• Allowing dual intent for F-1 visas (so students can openly plan to apply for permanent residence later)
• Expanded paths under the O visa for workers with extraordinary ability
• Measures to relieve green card backlogs

Administrative changes and compliance (USCIS policies)

Federal agencies have already tightened rules around OPT. A USCIS policy update from August 2024 — PA-2024-22 — clarified compliance points with special attention to STEM students:

• Reinforced limits on how many online/distance-learning credits count toward maintaining F-1 status
• Clarified transfer rules between SEVP-certified schools
• Confirmed that associate’s degree holders in eligible STEM fields can seek post-completion OPT
• Stressed the 60-day grace period after OPT ends, during which a student must leave the U.S., transfer to another program, or file a change of status

Important: The 60-day grace period is strict. Missing it can lead to unlawful presence and later reentry bars.

Current operational reality and timelines

In the near term, the situation is more stable than the political noise suggests:

• OPT remains available for eligible F-1 students
• No termination bill has passed either chamber
• The FICA tax exemption remains in effect for now

VisaVerge.com reports that many observers expect a tougher debate over taxes than program termination, partly because tax changes can be folded into broader compromises while avoiding an outright ban that would draw backlash.

Key dates and application steps (Summer and Fall 2025)

Summer 2025 graduates:
1. Can apply starting May 10, 2025
2. Must get their latest OPT I-20 by October 4, 2025
3. Can pick a start date between August 9 and October 7, 2025

Fall 2025 graduates:
1. Can apply from September 12, 2025
2. Must secure their latest OPT I-20 by February 9, 2026
3. Can choose a start date between December 13, 2025, and February 10, 2026

Processing:
– Form I-765 processing typically takes up to 90 days, so apply early to avoid gaps.
– Students must first receive a SEVIS recommendation and a printed I-20 from their international office, then file Form I-765 with USCIS.
– Form and filing instructions are on the USCIS site: https://www.uscis.gov/i-765

STEM extension specifics

• The existing 24-month STEM extension adds to the standard 12 months of post-completion OPT for a total of 36 months of work authorization per degree level.
• This extension lets graduates:
  • Gain U.S. work experience
  • Compete in H-1B lotteries
  • Build resumes for other options

Compliance requirements for STEM extension include timely reporting of employer details, employment connected to the degree, unemployment day limits, and maintaining a valid I-20.

Financial and hiring impacts if FICA exemption ends

The potential removal of the FICA exemption would quickly change budgets and hiring decisions:

• Example: A $40,000 annual salary would lose about $3,060 to the employee’s share of FICA
• Employers would face an added 7.65% in payroll costs per OPT hire
• Consequences:
  • Graduates may need cheaper housing or reconsider job locations
  • Small firms might delay offers or shift roles to contractors
  • Some employers could raise salaries to offset the tax hit

Broader consequences of termination vs. reform

If H.R. 2315 passes:
– Losing OPT would remove the main bridge from study to work in the U.S.
– Many graduates would face immediate disruption after graduation
– Universities—especially STEM programs—would likely see declines in international enrollments
– Companies in AI, cybersecurity, biotech, clean energy, and advanced manufacturing would feel shortages quickly

Supporters of termination argue companies should hire more U.S. workers or invest in training and that OPT can be misused (out-of-field work, unvetted staffing firms, diploma mills). Regulators have tried to address these issues through policy updates; more rule tightening could follow.

Opponents warn that competing countries (Canada 🇨🇦, the UK 🇬🇧, Australia 🇦🇺) offer attractive post-study work tracks. If the U.S. reduces OPT or raises costs, students may go elsewhere—leading to lost tuition revenue, fewer startup founders, fewer researchers, and long-term impacts on innovation.

Practical advice for students and employers

For current applicants and employers, practical steps to reduce risk:

Students:
– Apply early. File Form I-765 as soon as eligible to reduce gaps.
– Budget for possible tax changes. Plan for the 15.3% payroll tax if the FICA exemption ends.
– Keep status clean. Follow rules on online coursework, update SEVIS timely, and track unemployment days.
– Use the 60-day post-OPT grace period wisely—decide to depart, transfer, or file a change of status.
– Document everything. Keep offer letters, pay stubs, updated I-20s, and copies of filings.
– Be cautious about travel while I-765 is pending. After approval, carry your EAD, updated I-20 with OPT notation, valid F-1 visa stamp, and proof of employment for reentry.

Employers:
– Review onboarding for OPT hires. E-Verify enrollment is required for STEM extensions.
– Understand training plan and reporting obligations.
– Prepare finance teams for payroll impact if FICA changes, and communicate clearly with recent hires.

Political outlook and next milestones

• Total termination in 2025 is unlikely but not impossible; H.R. 2315 remains in committee and faces headwinds.
• Tax changes (DIGNITY Act) may be more likely—especially if folded into larger immigration or budget negotiations.
• Watch for:
  • Congressional hearings and committee markups on H.R. 2315
  • Floor signals from House and Senate leadership
  • Whether elements of the DIGNITY Act are folded into bigger bills

Universities, employers, and advocacy groups will press their data and stories in hearings: workforce vacancy data vs. abuse narratives.

What to watch and where to get authoritative guidance

• USCIS OPT information: https://www.uscis.gov/working-in-the-united-states/students-and-exchange-visitors/optional-practical-training-opt
• Form I-765 (instructions, fees, editions): https://www.uscis.gov/i-765

These pages are the authoritative sources for current rules, eligibility, and filing steps. The agency posts updates when policies change.

Final takeaways

• For now: OPT is open, STEM extensions are available, and FICA exemptions remain in effect.
• The debate has moved to the forefront in 2025 and could yield either:
  • More oversight and targeted reforms (rule changes, audits, clearer links between jobs and degrees), or
  • Tax changes with immediate payroll impacts (if the DIGNITY Act or similar passes)
• If termination gains traction, the U.S. risks losing international students to countries with robust post-study work options (Canada, the UK, Australia).
• Practical planning—early filing, budgeting for taxes, strict status compliance, and careful documentation—will help students and employers navigate uncertainty.

Key action items:
– File Form I-765 early within your filing window.
– Save funds in case FICA deductions begin in late 2025 or early 2026.
– If in a STEM field, map out the 24-month extension timeline with E-Verify and a compliant training plan.

Until a bill passes—and none yet has—Optional Practical Training remains available. Students, schools, and employers should follow official updates and be ready to adjust if Congress acts.