The recent news that the Department of Homeland Security (DHS) is considering a new rule to significantly limit or eliminate the Optional Practical Training (OPT) program for international students is cause for immediate and serious alarm.

For our corporate clients, research institutions, and the entire U.S. innovation sector, this is not just an immigration policy change—it is a self-inflicted economic wound that threatens to disrupt our most valuable pipeline of high-skilled talent.

What is at Stake? OPT as the Talent Bridge

OPT and its extension for STEM graduates (STEM OPT) allow F-1 visa holders to work temporarily in the U.S. in their field of study after graduation.

Crucially, OPT acts as the primary legal bridge that connects a U.S. education to a U.S. job, allowing employers to test-drive talent before investing in the highly complex and capped H-1B visa process.

The elimination or severe restriction of this program would be profoundly harmful for three key reasons:

1. Economic Loss and Innovation Decline

Economists across the political spectrum are clear: gutting the OPT program will cause direct and lasting harm to the American economy.

• Massive Economic Costs: Ending OPT would lead to a decline in productivity and cause economic output losses comparable to the entire domestic output of a mid-sized state (such as Utah or South Carolina).

• Job Creation Engine: Studies show that restricting OPT could lead to the loss of hundreds of thousands of U.S.-born jobs over the next decade. Far from displacing workers, foreign graduates are consistently linked to higher earnings for both less-educated and high-skilled native workers in U.S. cities.

• Innovation Drain: OPT is a major source of U.S. innovation. A quarter of all “unicorn” (billion-dollar) U.S. startup companies had a founder who arrived on a student visa. Restricting this program will cause permanent losses to innovation and productivity.

2. The Shift of Talent and R&D Overseas

If the U.S. makes it nearly impossible for highly skilled international graduates to gain work experience here, two devastating consequences will follow:

• Global Competitors Benefit: Countries like Canada, the UK, and Australia offer clearer, more welcoming post-study work pathways. Talented international students—who pay high tuition rates to be educated here—will simply take their skills, knowledge, and future patents to these global competitors.

• Jobs Move Abroad: U.S. companies facing talent shortages will be compelled to place their design centers, R&D labs, and high-skilled jobs outside the country to hire the graduates they need, reducing job opportunities for American workers.

3. Devastation for U.S. Higher Education

Universities rely heavily on international students, who often pay higher tuition. The prospect of eliminating the work bridge after graduation is already creating uncertainty.

• Enrollment Decline: Uncertainty about the ability to work post-graduation is a major deterrent. Restricting OPT could cause a substantial drop in international student enrollment, particularly in crucial STEM fields.

• Shrinking Programs: A loss of international graduate students, who are essential for research, could force many university science and engineering programs to shrink or disappear.

Our Counsel to Employers

The elimination of OPT would cripple U.S. employers’ ability to recruit and retain the talent trained right here at U.S. universities.

At Cohen, Tucker + Ades, we strongly advise employers to:

1. Stay Informed: Follow developments on the pending DHS rule, as this is currently in the rulemaking process.

2. Evaluate Your Workforce: Inventory your current and incoming OPT/STEM OPT employees to understand your exposure to this potential policy change.

3. Advocate: Engage with industry groups and policymakers to stress the vital necessity of the OPT program to your company’s growth and the American economy.

Disclaimer: This blog post contains general information and is for informational purposes only. It is not legal advice and does not create an attorney-client relationship between you and Cohen, Tucker + Ades P.C. Immigration laws and fee schedules are subject to frequent change. The information provided herein may not reflect the most current legal developments. You should not act or refrain from acting based on information contained in this post without seeking professional counsel from an attorney licensed in your jurisdiction. Cohen, Tucker + Ades P.C. expressly disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this post.

Sources:

Department of Homeland Security | 

Forbes | New Immigration Rule Will End Or Restrict Student Practical Training

Newsweek | Trump Admin Plans Major Student Visa Change

The Economic Times | Trump administration weighs new rule to restrict OPT program for international students