Sen. Jim Banks Calls for End to OPT Program

Senator Jim Banks (R-Ind.) is urging President Trump to discontinue the Selective Practical Training (OPT) program. This initiative offers tax incentives to companies that hire foreign students rather than American graduates, particularly in the STEM (science, technology, engineering, and mathematics) sectors.

A letter sent to Trump through senior adviser Stephen Miller and Homeland Security Secretary Kristi Noem calls for actions to terminate the OPT program. Banks argues that it was established by bureaucrats to bypass existing immigration laws, giving tax breaks to employers who favor foreign workers over American ones.

OPT allows international students to work in the U.S. for up to a year after graduation for each degree obtained from a higher education institution. STEM graduates can work for up to three years. However, this program has not received Congressional authorization; it exists solely because of the decisions made by bureaucrats.

Despite its absence of political legitimacy, the OPT program has significantly changed America’s guest worker framework. Nearly 500,000 foreign workers now hold OPT status, with most employed in STEM fields. More than a third of international students in the U.S. gain work authorization primarily through OPT.

Interestingly, the number of OPT holders is almost as high as that of H-1B visa holders, yet OPT lacks the basic protections provided by the H-1B program. There are no caps, no minimum wage requirements, and no obligation for employers to prioritize hiring American workers before opting for foreign workers. This means employers get an effective 15% discount on their tax obligations when hiring OPT participants.

Banks points out that American graduates in STEM fields are finding it hard to get jobs because companies prefer international candidates who bring along these tax benefits. He notes, “The OPT system incentivizes employers to overlook American graduates in favor of foreign guest workers, particularly in STEM fields.”

Currently, around one-third of computer science graduates and half of computer programming graduates are jobless just six months after earning their degrees. While major tech firms claim there’s a worker shortage, the statistics suggest otherwise. In 2023, American universities are set to graduate 134,000 U.S. citizens or green card holders with computer science degrees, yet the federal government issued work permits to 110,000 foreign guest workers in this field.

Banks also raises concerns about national security, suggesting that the influx of Chinese students through the OPT program poses risks. He notes that one out of four OPT holders is from China, and at Columbia University, nearly 20% of students have OPT permits.

Banks has asked Miller and Noem to ensure the program is abolished, emphasizing it lacks Congressional approval. If it continues, he suggests imposing a cap and establishing a minimum wage between $90,000 and $115,000 for OPT workers.

He believes companies should be mandated to follow proper hiring protocols for American graduates before considering hiring OPT candidates and should provide the same tax contributions for them as they do for other employees.

USCIS Secretary Joseph Edlow has previously indicated that companies might be leveraging the OPT program as a way to bypass the H-1B visa cap, raising concerns that U.S. students may struggle to find jobs matched to their qualifications.