OPT faces fresh political heat in US amid fraud allegations; Intl students will face the brunt

The Optional Practical Training (OPT) program, a crucial post-study work route for thousands of international students in the US, is once again in the crosshairs of America’s immigration debate, after federal authorities alleged widespread fraud and abuse within the system.

US immigration authorities claim to have identified more than 10,000 students linked to “highly suspect employers” across the country. In a sharply worded briefing, acting director of US Immigration and Customs Enforcement (ICE) Todd Lyons described the OPT program as a “magnet for fraud” and warned of criminal, civil and immigration consequences for those found abusing the system.

“Today we are announcing that we have identified over 10,000 foreign students who claim to be working for highly suspect employers. And that’s just among the top 25 OPT employers,” Lyons said in the briefing.

Immigration lawyers and education experts have long cautioned that while fraudulent consultancies and fake staffing arrangements do exist within the OPT ecosystem, the overwhelming majority of international students use the program legitimately to gain work experience after graduating from accredited US institutions.

The latest crackdown is expected to fuel long standing political efforts by conservative groups to scale back or eliminate the program altogether. The idea of cutting back the OPT program had first emerged during Trump’s earlier Presidency, in the administration’s 2020 spring agenda. More recently, last April, Congressman Paul Gosar had introduced a bill in the house to eliminate the OPT program on the grounds that “it completely undercuts American workers, particularly higher-skilled workers and recent college graduates, by giving employers a tax incentive to hire inexpensive, foreign labour under the guise of student training.”

In the backdrop of this briefing, VP JD Vance posted on X: Another great win for our fraud task force. We will not tolerate foreign nationals abusing our visa system at the expense of the American people.

OPT allows international students on F-1 visas to work for a year in the US after graduation. Students in STEM fields can obtain an additional 24-month extension beyond the initial 12 months of OPT. The extended period of OPT for STEM students is in particular viewed by Trump’s hardline supports as a program that takes away jobs from locals,

According to the latest Open Doors report for 2024-25, 3.6 lakh Indian students were studying in the US. As many as 1.4 lakh were participating in the OPT program (a significant number of which were in STEM-OPT).

International students (including innocent student victims) are labelled as guilty of fraud under the ‘secret’ OPT scam findings of US agencies – secret because the names of the tainted employers are not made public.

Under a revised policy, which was reported by TOI last March, notices can be issued to students who in the past underwent or are undergoing OPT with blacklisted companies. This can result in arrest, detention and deportation, even years later (say: while an erstwhile student is gainfully employed with an H-1B visa). The recent briefing on OPT scams has triggered anxiety among international students, especially Indian students, who are the largest cohort.

According to ICE officials, investigators found alleged employers operating from empty offices, locked buildings, shared addresses and even residential homes supposedly employing hundreds of foreign students. Authorities also claimed some firms lacked proper employment records and showed signs of financial irregularities.

The agency further alleged that some companies listed offshore HR and payroll teams based in India and that, in certain cases, students claiming to work for US firms were actually being “trained” by companies operating from India.

ICE’s Homeland Security Investigations (HSI) unit said it had conducted site visits in states including Texas, Virginia, Georgia, New Jersey and New York. In one case cited during the briefing, officials claimed a company reported employing only three OPT workers even though government records showed more than 500 students listing it as their employer.

US authorities also alleged the existence of shell-company networks and “phantom employees” — students who obtained work authorization documents but allegedly never appeared at the declared worksites.