After H-1B, F-1 Visa On The Radar

There are about 26 million USA people who are unemployed. And Now Optional practical training (OPT) could be the next visa that could be targeted by the US government to address the unemployment issues. This will have a direct implication on the Indian students pursuing higher studies in the US.

According to media reports, the Department of Homeland Security chief Chad Wolf has said that the organization is reviewing temporary visa workers program including curbs on H-1B and OPT as per the executive order American President Donald Trump signed recently. The concern about OPT was directed towards Chinese students using it to settle in the country.

The execution order suspended immigration for 60 days and mandated a review of temporary worker visa policy in a bid to address the increasing unemployment issues in America due to COVID-19.

The US Citizenship and Immigration Services defines OPT is temporary employment that can be availed by foreign students (F-1 visa) before or after the completion of studies. The period of OPT is 1-year. However, if you are a Science, Technology Engineering, and Mathematics (STEM) student, you can get an additional 24-month extension.

In essence STEM graduates get 3-years of temporary employment in the USA. This is beneficial for both companies and students as they are exempted from paying taxes. According to the DHS site, the STEM OPT participant is not considered a resident for five calendar years in F-1 status. So companies that hire are saving in taxes.

Will curb on OPT help?

A Businessroundtable.org reports that “If the administration introduces policy changes, that would lead to a 35 % reduction in the issuance of foreign-born student visas and a 60% decline in OPT participation by 2020, the effect on the U.S. economy would be negative.”

The reports further added that since only international students in the US can avail OPT, participants are young and perfectly positioned to contribute to economic growth.

For instance, a 1% increase in immigrant college graduates leads to a 15 percent increase in patents per capita. The report also suggests that this also spurs a starting of new businesses and expansion of the labor market benefiting the US economy.