The Trump administration has announced reforms to Optional Practical Training in a bid to prevent foreign students on temporary visas from remaining in the United States permanently and protect American workers.
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Explaining President Trump’s Proposal.
The Trump administration has proposed increasing the cost of Optional Practical Training (OPT), which allows foreign students on temporary F-1 visas to work in the United States after completing their studies. Under the proposal, universities would face a $70,000 charge when they initially recommend an international student for OPT, followed by a $30,000 fee for subsequent training, including STEM (Science, Technology, Engineering, and Mathematics) extensions. The current fee is roughly $500. The proposal aims to prevent abuse of the OPT system and protect American workers.
Do Foreign Students Contribute to the United States?
Foreign students provide American universities with revenue through tuition and living expenses, as well as through a research pipeline that starts in the university system. Last year, approximately 1.18 million international students studied at colleges and universities in the United States, generating an estimated $42.9 billion in economic activity, according to NAFSA (National Association of Foreign Student Advisers).
According to current estimates, roughly six percent of science and engineering bachelor’s degrees in the United States are awarded to foreign students. The proportion increases when it comes to graduate degrees, with just over half of all master’s degrees in the same field going to foreign students, as well as 38 percent of science and engineering doctorates. Research from the National Center for Science and Engineering Statistics shows that temporary visa holders earned 61 percent of doctorates in computer and information sciences, 54 percent of engineering doctorates, and 51 percent of mathematics and statistics doctorates in the United States in 2024.
The era of Americans being undercut by cheap foreign labor is over.
Optional Practical Training (OPT) was never meant to be a back door into the American workforce.
Crafting financial incentives to hire foreigners over Americans is contrary to the competition that makes our… https://t.co/guRe5FWVQl
— Homeland Security (@DHSgov) October 8, 2026
This has long-term economic ramifications for the American job market, as approximately 37 percent of international students who graduate from U.S. universities remain in the country years later. Retention varies significantly by degree level, at roughly 18 percent for bachelor’s graduates, 43 percent for master’s graduates, and 80 percent for doctoral graduates, according to a report from the Aspen Institute’s Economic Strategy Group published last year.
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Comparisons With H-1B Visa Reform.
The Trump administration is aware that employers can obtain cheap foreign labor through the F-1 visa system, thereby circumventing the H-1B visa system, which is subject to an annual cap, among other restrictions. The H-1B system has been subject to various reforms by the Trump administration. Last year, President Donald J. Trump announced a $100,000 fee on H-1B workers to incentivize employers to hire Americans. This followed an anti-fraud investigation by Vice President JD Vance.
As such, the proposal to reform OPT is an extension of the Trump administration’s crackdown on H-1B visas. The proposal is also comparable to previous H-1B reform, as the Trump administration aims to use economic incentives to alter corporate decision-making. The measure reflects that, like American workers, American students face economic pressures from immigration, making F-1 reform an extension of the Trump administration’s America First philosophy.
What Does This Mean for American Graduates?
The proposal has sparked debate over whether sharply increasing employment costs would benefit American graduates or encourage international talent to go elsewhere. Significantly, making foreign graduates far more expensive to employ would give American graduates a stronger market position when competing for jobs, particularly where foreign workers and Americans have similar skills.
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