Optional Practical Training: A Shadow Workforce with Minimal Oversight

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Washington, D.C. (November 7, 2024) - The Optional Practical Training program (OPT), which began as a post-graduation internship program, has evolved into the largest foreign worker program in the United States, authorizing work for years beyond graduation for foreign nationals on student visas. Notably, OPT was developed by DHS under pressure from Silicon Valley tech leaders looking for ways around worker protections built into the H-1B visa program.

In the latest episode of Parsing Immigration Policy, Jon Feere, the Center’s Director of Investigations and former ICE Chief of Staff, examines the controversial OPT program. This timely discussion reveals the implications of the underregulated program that has allowed over half a million foreign students to work in the United States without work visas, impacting American employment and wages, national security, and Social Security and Medicare revenues.

Key Points:

Economic Impact: Employers hiring foreign students under OPT are exempt from paying Social Security and Medicare taxes, leading to an estimated $4 billion in annual lost revenue. This tax advantage can incentivize the hiring of foreign workers over Americans.
Oversight Challenges: Over 7,400 schools certified by ICE to enroll foreign students rely on Designated School Officials (DSOs) to maintain and update records. These officials often face university pressure to ignore the required strict oversight.
Fraudulent Practices: "Day 1 CPT" schemes allow students to work almost immediately upon arrival, undermining the educational purpose of their visas and enabling work without genuine educational intent.
National Security Concerns: The unchecked growth of the OPT program poses significant national security risks, allowing foreign nationals to work for years in sensitive fields.
Solutions: Limit the fields of study available to foreign students, and eliminate or significantly tighten up the OPT program to make it more manageable for DHS and less likely to have a significant impact on national security and the U.S. labor market.