Trump's new rule may end OPT for foreign students: What US govt papers show

A forthcoming Trump administration rule could end or severely restrict the OPT, impacting thousands of international students and raising concerns among educators and economists

An upcoming rule from the Trump administration could bring sweeping changes to Optional Practical Training (OPT), a programme that allows international students to work in the United States after completing their studies. According to a report by Forbes, the proposed rule, listed on the Department of Homeland Security’s (DHS) regulatory agenda under the title “Practical Training”, is expected to appear before the end of 2025 or in early 2026.

What does the OPT programme allow?

The OPT programme permits international students to work for up to 12 months in their chosen field of study, either before or after completing their degree. Those in science, technology, engineering, or mathematics (STEM) fields can apply for an additional 24-month extension, known as STEM OPT.

The Bush administration introduced this extension to improve students’ chances in the annual H-1B visa lottery. Each year, about 250,000 students work in the US under OPT or STEM OPT. For many immigration hardliners, ending these programmes is seen as a way to prevent students from later securing H-1B status.

What does the proposed rule contain?

According to the DHS document seen by Business Standard, “The proposed rule will better align practical training to the goals and objectives of the programme while providing more clarity to the public.” It adds that the changes will “address fraud and national security concerns, protect US workers from being displaced by foreign nationals, and enhance the Student and Exchange Visitor Program’s capacity to oversee the programme.”

In recent months, the Trump administration has introduced several measures affecting foreign students. In August, DHS proposed a rule that would replace the current “duration of status” system with fixed admission periods, potentially making it harder for students to complete long programmes. In September, another rule was proposed to alter the H-1B selection process, favouring senior-level applicants over recent graduates.

During his Senate confirmation hearing on May 21, 2025, Edlow made a controversial point clear: he wants to end OPT, the program that allows international students (F-1 visa holders) to work for up to 12 months after graduation, and also STEM OPT, which extends this window by an additional 24 months for those studying in STEM fields (science, technology, engineering, and mathematics). To give you an idea of the impact: in the 2023-2024 academic year, 242,782 students (163,452 in OPT + 79,330 in STEM OPT) benefited from these programs.

How could the rule affect the US economy?

Economists warn that ending OPT could harm American innovation and the economy. “The clearest evidence is that foreign graduates of US universities cause major increases in innovation,” said Professor Michael Clemens of George Mason University. “Terminating OPT would do the opposite.”

Research by Clemens and colleagues Amy Nice and Jeremy Neufeld for the National Academies of Sciences found that removing OPT would reduce productivity, shrink economic growth, and cost the US output comparable to an entire state such as Utah or South Carolina.

Madeline Zavodny, an economics professor at the University of North Florida, reached a similar conclusion in her research. “The results indicate that the OPT programme does not reduce job opportunities for American workers in STEM fields,” she said. A National Foundation for American Policy study also found that more OPT approvals were linked with lower unemployment among US workers.

How will this impact Indian students?

Prof. M. A. Venkataramanan, Pro-Vice Chancellor at FLAME University, said Indian students should now think more strategically about their study plans. “Students should plan with a long-term mindset. Don’t rely only on H-1B or OPT; instead, focus on the strength of the programme, global career options, and skills that are in demand everywhere,” Venkataramanan told Business Standard. “Countries like Germany, Canada, and Australia offer clearer residency and work pathways, and even within the US, strong networking and internships can open global opportunities.”

Are fewer students going to the US?

The uncertainty appears to be taking a toll on student inflows. According to data from the US National Travel and Tourism Office, international student arrivals dropped by 19 per cent in August compared with the same month in 2024. August, which usually marks the start of the academic year, saw 313,138 students arrive on study visas.

Federal data show steep regional declines this August:

• 33 per cent drop from Africa
• 17 per cent drop from the Middle East
• 24 per cent drop from Asia, including a 45 per cent fall from India, the largest source of international students to the US

Universities say this downturn reflects growing unease as the Trump administration tightens scrutiny of visa applications, raising fears that stricter post-study work policies could further deter students from choosing the US.

This article has valuable insights from Prof M. A. Venkataramanan, Pro -Vice Chancellor, FLAME University.