American Dream in Doldrums: Scrapping OPT, International Students to Opt out of US Universities?

14 April 2025 Tridivesh Singh Maini

In recent years, while there has been a drop in the enrolment of Chinese students in US universities due to the deterioration of ties between both countries and some changes to the visa regime, the number of Indian students in the US has risen. However, the recommendation of a new bill introduced in the US Congress on March 25, 2025 – the Fairness for High-Skilled Americans Act 2025 – to scrap the Optional Practical Training (OPT) program could result in a dip in Indian enrollment in US higher education institutions. It would be important to point out that US universities are also dependent upon international students, and with a dip in the enrolment of students from China, they have become more dependent upon Indian students.

The US has remained a preferred higher education destination for international students, and this has often been highlighted as an important component of what is referred to as the country’s “Soft Power”. In recent years, the US Soft Power has declined while China has sought to enhance its Soft Power. Several other countries, especially the UK, Canada and Australia, have emerged as popular destinations for international students.

Despite the above points, the US has several advantages and is the first choice, especially for students in STEM (Science, Technology, Engineering and Management) disciplines. During Donald Trump’s earlier presidency (2017-2021), a more stringent student visa policy and his overall approach towards immigration meant that several international students started looking at alternative options. Canada had emerged as the most preferred option for both professionals and students.

In recent years, while there has been a drop in the enrolment of Chinese students in US universities due to the deterioration of ties between both countries and some changes to the visa regime, the number of Indian students in the US has risen. In the academic year 2023-2024, a record-high 331,602 Indian students were enrolled in US universities. This reflected a 23% rise from the previous year. It would be pertinent to point out that the percentage of F-1 student visa applications rejected in 2024 witnessed an increase vis-à-vis 2023 due to the changes in F-1 visa procedures.

Data from the Student and Exchange Visitor Information System (SEVIS), maintained by the US Department of Homeland Security, reveals that the number of foreign enrolments in the US has dropped month by month between July 2024 and March 2025.

The recommendation of a new bill introduced in the US Congress on March 25, 2025 – the Fairness for High-Skilled Americans Act 2025 – to scrap the Optional Practical Training (OPT) program could result in a further dip in Indian enrollment in US higher education institutions.

While it would be hazardous to make any long-term predictions, despite several policy changes, the US has remained an attractive destination for international students due to the several advantages it possesses. The recommendation of a new bill introduced in the US Congress on March 25, 2025 – the Fairness for High-Skilled Americans Act 2025 – to scrap the Optional Practical Training (OPT) program could result in a further dip in Indian enrollment in US higher education institutions. The OPT provides F-1 students an opportunity to gain experience in their respective fields of study. In several cases, students on an OPT secure H-1B visas and ultimately get Green Cards and even US citizenship. In 2008, the George W Bush Administration extended the original OPT program period from 12 to 29 months for STEM students. The Obama administration increased this further to 36 months.

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The scrapping of the OPT program has the firm backing of MAGA supporters. The US tech workers’ coalition called it “the largest guest worker program killing jobs for new American college grads”

The “Fairness for High-Skilled American Act 2025” bill makes similar arguments and states that OPT is skewed in favour of international students. The official statement of Congressman Paul Gosar said: “The OPT program 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.”

The scrapping of the OPT program has the firm backing of MAGA supporters. The US tech workers’ coalition called it “the largest guest worker program killing jobs for new American college grads”

Immigration attorneys in the US have said that the bill will not go through in the US Senate since Republicans do not have adequate numbers. However, if the bill does go through, Indian students enrolled at US universities will need to leave the country immediately after graduation. Only those students who are able to secure H1-B visas – which are limited in number – will be able to work in the US, and there is already uncertainty regarding the H1-B visas.

While there has been opposition to the proposal for scrapping the H-1B administration from several of Trump’s team members – including Elon Musk – it remains to be seen if there are any voices within the Republican party which oppose the idea of doing away with the OPT program. Several universities have already criticised this proposal.

Also Read: US Universities Caution International Students Before Trump’s Inauguration

International students, in general, and Indian students, in particular, will be impacted if the OPT program is scrapped. It would be important to point out that US universities are also dependent upon international students, and with a dip in the enrolment of students from China, they have become more dependent upon Indian students. Not only do international students contribute to the US economy via tuition fees, but many graduates of US universities have stayed on in the US to become top entrepreneurs and innovators.

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