Business groups in Washington are expressing concern as the Trump administration tightens the flow of migrant workers arriving through student visas and U.S. universities.
“This is going to have a huge impact on our ability to keep talented individuals in STEM fields,” said advocate Sam Peak on August 21, as he defended the “Optional Practical Training” (OPT) program initiated by President George W. Bush. “Abolishing OPT essentially removes a vital link that allows the U.S. to maintain its pool of exceptional talent,” he noted.
“The Trump administration is looking at implementing a $100,000 fee… which would pretty much put an end to the program,” Jeremy Neufeld, director of immigration policy at the Institute for Progress, stated.
The OPT program, established by the Bush administration, hasn’t seen any legislative action from Congress since. Over the years, it has facilitated employment for millions of foreign graduates from U.S. colleges—mainly from India—helping them to enter essential jobs that U.S. graduates also require. However, this influx has raised concerns about the creation of ethnic hiring networks within U.S. companies that may exclude American workers, despite existing anti-discrimination laws.
In contrast, nearly 500,000 Americans received degrees in fields related to science, technology, engineering, and mathematics in 2024.
However, in 2024, around 640,000 foreign graduates were authorized to work through the OPT and a similar program called Curricular Practical Training (CPT), after having paid tuition at U.S. colleges and universities.
These work permits allow foreign graduates to work for up to five years across various educational disciplines.
This significant influx—combining with other visa programs—means that about 20 percent of U.S. STEM jobs are now held by immigrants, while roughly two-thirds of domestic STEM graduates find employment outside of their field.
This influx has reportedly led to a decrease in wages and affected the level of professionalism and innovation within the U.S. tech industry.
The sustained presence of foreign workers has also positioned many Chinese and Indian managers in crucial roles, particularly as Congress faces challenges associated with advancements in artificial intelligence, security issues, and privacy matters.
Some officials within the Trump administration have acknowledged these issues.
During a Senate hearing in May 2025, Joe Edlow, who was appointed by Trump to oversee U.S. Citizenship and Immigration Services, remarked:
“The management of the OPT program over the past four years has been problematic, with misapplications of the law… I would advocate for a regulatory framework that would eliminate employment authorizations for F-1 [foreign] students after their studies are completed.”
Changes to these programs are currently being drafted by Trump’s officials.
On July 30, a report indicated that administration officials were contemplating imposing a $100,000 fee for foreign graduates wanting to utilize the OPT program as a route to citizenship.
On August 24, the Department of Homeland Security issued a guidance document instructing university officials to deny CPT work permits to foreign graduates applying for jobs outside their field of study, effectively banning basic positions like retail or food service.
“CPT students should only be engaged in training supervised by employers partnered with their schools for specific training agreements,” the guidelines stated, warning that non-compliance could lead to the loss of the institution’s ability to enroll foreign students.
Some U.S. colleges are beginning to withdraw from participating in the CPT program.
Moreover, there are indications that enforcement of OPT work permit requests has become stricter.
Harmeet Dhillon, leading the Justice Department’s civil rights division, is investigating potential discrimination against American job seekers in this area. “We are collaborating to address discrimination and ensure fairness for the American labor force,” she emphasized in a recent interview.
“We have significantly intensified our focus on this,” Dhillon mentioned.
The Labor Pipeline
The restrictions on CPT are occurring alongside mounting reports that Indian firms exploit these work permits for lower-tier jobs in the U.S., including roles in retail, delivery, and hospitality.
For instance, an Indian-owned company named Guru Education recruits Indian migrants for hotel positions while promising them “valuable experience” in the U.S. through CPT and OPT.
Guru’s website markets “paid internships” along with free housing. They claim to work with numerous universities that provide CPT work permits on the first day of enrollment and with various hotel franchises.
Guru also asserts they provide opportunities in tech and healthcare sectors. Their healthcare website promotes substantial cost savings for staffing through outsourcing services.
While this company seems to follow federal rules, new CPT restrictions may require them to reorganize.
The AAHOA, representing hotel owners, has denied allegations of illegal labor practices:
The claims suggesting that Indian American hoteliers participate in unlawful practices are inaccurate and misleading. Our members operate legally and comply with hiring regulations.
AAHOA advocates for legitimate workforce solutions and chooses not to engage with hostile narratives based on ethnic targeting.
Moreover, many OPT and CPT workers are joining a growing number of Indian migrants who entered the U.S. on legitimate tourist or business visas during Biden’s administration, hinted trafficking expert Jay Palmer.
“Indian employers have devised a modern form of indentured servitude,” he commented while providing a preliminary legal allegation regarding the exploitation of Indian migrants who used tourist visas for illicit work opportunities.
The documents outlined how:
7. Individuals entering on B-1/B-2 visas received welcoming letters and were instructed to represent themselves as visitors during interviews.
8. Families typically paid around $10,000 in India for their entry arrangements.
9. After arriving, they were obligated to work in the defendants’ businesses, even though B-1/B-2 visas do not permit employment.
10. They were informed that they needed to work to repay their recruitments fees, resulting in conditions akin to debt bondage.
11. Plaintiffs faced long hours, minimal pay, and threats of intimidation.
12. Housing was often overcrowded or substandard, with some individuals placed in makeshift accommodations.
13. At least two individuals had their passports taken when attempting to leave or resist poor working conditions.
The Indian plaintiffs claimed they were obliged to work to pay off debts to their families and for visa and other related costs. They reported threats and harassment when attempting to escape these conditions.
Peonage, referring to debt bondage, was common in post-Civil War southern states until significant legal interventions occurred in the 1940s.
“A debt in India transformed into compelled labor in the U.S.,” Palmer noted.
White Collar Jobs
Many participants in OPT and CPT secure entry-level positions at prominent tech companies and banks, including entities like Amazon and Google.
However, many remain trapped in subcontracted roles where their treatment is poor due to their precarious status.
Interestingly, some mixed-skill workers also land positions within Fortune 500 companies, in competition with American graduates. For example, Indian national Madhur Mehta, having graduated from a respected institution in India before completing his education in Texas, utilized an OPT work permit to secure a role at Amazon amid stiff competition.
After five years in the U.S., he expressed significant achievements, including a managerial position.
Mehta also actively offers advice to job seekers.
“If you know someone at Amazon, it’s worthwhile to ask for a referral,” Mehta suggested.
Indian migrants have even been known to pay for job referrals as well as visa-related assistance.
“That’s how the pipeline for foreign workers in tech operates,” observed Nick Plumb, a former Amazon manager.
University recruiters often connect with OPT candidates initially, guiding them to job placements. The referral system is indeed real. In a previous role, I had two hires from the same background who were likely referred, which leads to biased hiring practices.
Plumb commented that the ethnic hiring practices among Indian managers aim to bolster their influence, described as “Izzat” in Hindi. “Building a network gives more power and opportunity within the Indian community,” he asserted, though he clarified that monetary interests weren’t observed during his employment.
Many job offers are influenced by non-merit-related factors, offering further insight into the job market dynamics:
Mehta is positioned at the lowest tier of his organization. Any college grad could do his job efficiently.
…
Essentially, job opportunities often stem from personal connections, and referrals usually guide candidates toward favorable hiring teams.
This skewed job market often forces skilled American specialists into lower-tier occupations. For instance, job seeker Jedediah Seaman described his challenges with online applications, lamenting a lack of human contacts, leading to an impersonal and frustrating job-seeking experience.
In the meantime, Indian OPT and CPT workers are entering numerous sectors, including healthcare and education, even as the prospect of job reductions due to AI looms large.
Lobbyists
OPT and CPT programs enjoy strong advocacy from significant investors, some with direct access to the Trump administration.
This advocacy is becoming more visible: “The proposed $100,000 fee is ill-conceived,” noted Adam Ozimek, an economist working with pro-migration investors. “It would degrade our high-skilled immigration framework.”
Pro-migration writers emphasize the importance of foreign students for the U.S.’s innovation and strength.
Currently, 419,000 individuals are part of the OPT program, and the proposed fee could abruptly terminate it, highlighted a post from the United Hindu Council.
Supporters tout the OPT program as an opportunity for top global talent to enter the workforce, suggesting it fuels economic growth while overlooking the skilled Americans who are sidelined.
Under mounting pressure from Trump’s administration, proponents are admitting issues they had previously overlooked, as Americans continue to feel the impacts of job loss.
“Yes, OPT presents certain issues that warrant reform,” asserted a recent article in a business-focused journal:
Many participants are exempt from certain taxes, giving employers a financial incentive to prefer foreign over domestic workers.
Also, the program creates incentives for educational institutions to prioritize work authorization over quality education.
Most troubling are “Day 1 CPT” programs that issue work authorizations immediately upon enrollment, often lacking robust attendance and course requirements.
“Fraud within the system needs urgent attention,” the article concluded.
