US Proposes Major Overhaul to International Student Visa and OPT Program Rules

The United States is proposing significant changes to its immigration policies for foreign students. New rules could limit their stay to a fixed period and impose new taxes on their earnings. These proposals come as official data shows a sharp 19% decline in new international student arrivals. The changes directly impact the popular Optional Practical Training (OPT) program.

According to Reuters, the Department of Homeland Security (DHS) is leading the regulatory shift. The moves are seen as part of a broader effort to reform work and study-based immigration. The combined effect could make the US a less attractive destination for global academic talent.

From “Duration of Status” to Fixed-Term Stays

The DHS proposal would eliminate the current “duration of status” admission for F, J, and I visa categories. Currently, students can remain in the US as long as they maintain their enrollment status. The new rule would replace this with a specific, fixed time period.

Students would be required to leave the country once their permitted admission period ends. Those wishing to extend their stay would need to apply formally with U.S. Citizenship and Immigration Services (USCIS). This adds a new layer of administrative burden for students pursuing long-term degrees.

After their program ends, F-1 students currently have a 60-day grace period to depart. To stay longer for work, they must change their visa status, such as to an H-1B or O-1 visa. This process is often complex and highly competitive.

New Tax Threatens OPT Program Finances

A separate legislative proposal, the OPT Fair Tax Act, introduces a major financial disincentive. Sponsored by Senator Tom Cotton, the bill aims to remove the FICA tax exemption for OPT participants. FICA taxes fund Social Security and Medicare programs.

Currently, international students on OPT do not pay these payroll taxes. The new act would require both the student and their employer to pay. The total FICA tax burden is 15.3% of wages, split evenly between employee and employer.

This could mean a significant reduction in take-home pay for affected students. Employers would also face new costs for hiring OPT participants, potentially making them less likely to do so. The bill has been introduced but not yet passed into law.

The proposed changes to visa duration and the OPT program represent a fundamental shift in U.S. policy toward international students. If enacted, these measures could accelerate the decline in foreign student enrollment, impacting university finances and cultural diversity on campus.

Info at your fingertips

What is the Optional Practical Training (OPT) program?

OPT allows international students on F-1 visas to work for US companies after graduation. It typically provides up to 12 months of work authorization. Students in STEM fields may be eligible for a 24-month extension.

What is the “duration of status” rule?

Duration of status allows students to stay in the US as long as they are enrolled full-time in their academic program. The proposed change would replace this with a strict, fixed time limit for their entire stay.

How would the OPT Fair Tax Act affect students?

Students could see nearly 15% of their salary deducted for FICA taxes. This would significantly reduce their net income compared to American peers and other foreign workers on different visas.

Which countries are most affected by these changes?

Data from the Associated Press indicates students from India and China would be most impacted. These two nations send the largest number of international students to American universities each year.

Have these proposals become law yet?

No, both proposals are still under consideration. The DHS rule change is in the proposal stage, and the OPT Fair Tax Act is a bill that has been introduced in Congress.