Dual threat to foreign students? US proposes changes to visa stay rules and OPT program, key details here

If the US modifies its immigration laws, international students may find it less desirable to study and pursue employment prospects in the US.

The US’ limitations on their “stay period” and the imposition of taxes on their OPT earnings pose dual threats to international students.

Under the Optional Practical Training (OPT) program, international students on an F-1 visa can work for US companies. In America, foreign students can obtain up to 12 or 24 months of work experience under the OPT program.

Also Read: Alert for Green card holders: US issues new entry and exit rules for all foreigners

All about F, J, and I aliens from ‘duration of status’

The Department of Homeland Security (DHS) is proposing to change its regulations to ensure that F, J, and I aliens are admitted for a “fixed time period” instead of a “duration of status.” Duration of status allows a person to stay in the country as long as they continue to be a non-immigrant student.

Students on an F-1 study visa and other non-immigrants will be required to leave the country after a certain amount of time under the new rule that US officials have proposed.

All nonimmigrants in the F, J, and I categories who want to stay in the United States after their specifically permitted admission period must apply for an extension of stay directly with USCIS or leave the nation and submit an application for admission with CBP at a port of entry (POE) if they are admitted for a set amount of time.

F students are given 60 days to depart the US following the conclusion of their program of study and any approved term of practical training. To prolong your period of stay in the United States, you will need to apply for a different visa status, such as an O-extraordinary talent in science, art, or business visa or an H-1B-temporary worker visa.

OPT under threat? All we know about OPT Fair Tax Act

Many international students in the US rely on the Optional Practical Training (OPT) program to continue working and advancing their careers after completing their education. But it seems that option is under threat right now.

The long-standing exemption would be eliminated under Senator Tom Cotton’s OPT Fair Tax Act, which would require businesses and OPT students to contribute to FICA taxes (Social Security + Medicare).

According to the bill, companies would have to match contributions, just like they do for US workers, so both parties would contribute the same amount. As of now, OPT participants do not pay these payroll taxes.

The Social Security and Medicare taxes, which are 6.2% and 1.45%, respectively, amount to 15.3% of salaries if each side bears that. This implies that if the rule is approved, international students may lose roughly 15% of their take-home salary.

The wage base cap only applies to the Social Security tax. The maximum salary subject to taxation for that year is known as the wage base limit. In 2025, $176,100 is the basic limit for earnings. The Medicare tax does not have a wage base limit.

Firms who hire overseas workers as part of the OPT program would no longer be excused from paying FICA taxes under the OPT Fair Tax Act. FICA taxes must be paid by all OPT employees and their employers, as per the act.