The Department of Homeland Security (DHS) has confirmed it is re-reviewing America’s post-study work stream for international students, citing concerns over US worker displacement, fraud, national security and federal oversight of the program.

“DHS is reevaluating whether the current regulatory framework appropriately serves US labour market, tax, and national security interests and remains aligned with congressional intent,” secretary of homeland security Kristi Noem wrote in an internal letter.

“We are aware of the significant increase in the number of foreign student visa holders engaged in practical training programs and the potential risks and challenges,” she said, adding DHS was committed to protecting the interests of US workers.

The letter is dated January 9, 2026, and is addressed to Republican senator Schmitt of Missouri who released the correspondence last week.

Senator Schmitt requested the re-evaluation of OPT and STEM OPT in November last year, arguing the program functioned as a “cheap labour pipeline for big business – and a backdoor into the US job market for foreign workers”.

“This system boxes young Americans out of the workforce, discriminates against American workers in favour of foreign labour, and suppresses job opportunities for US graduates.”

Schmitt added the program incentivises colleges to become “visa mills” and distorts the US education system. He noted that OPT exists by regulation rather than statute, affirming the DHS’s authority to potentially alter the program without new legislation.

DHS is committed to ensuring that immigration programs operate in the interests of American workers

Secretary Noem’s letter referenced a Spring 2025 rulemaking entry to address fraud and national security concerns, protect US worker displacement and enhance SEVP program oversight, signalling the potential tightening of OPT and STEM OPT supervision.

Stakeholders have been advised to watch for rule making in the federal register’s spring unified agenda entry, with any proposed rule to be open for public commentary after publication.

As it stands, OPT allows international students to stay and work in the US for 12 months post-graduation, with STEM graduates allowed an additional 24-month extension.

But for a pandemic era dip, the number of OPT participants in the US has been on an upwards trajectory since the program’s inception, with total levels nearing 295,000 in 2024/25 after several years of steep growth.

Total number of international students by study level in the US:

OPT participants remain on F-1 student visas, the program’s rise has been the primary driver of growing international student totals in recent years, with OPT participation surging by 21% in 2024/25 while undergraduate enrolments rose by 4% and graduate levels saw a 3% decline.

After a 47% year-on-year growth rate in 2024/25, Indian students now make up nearly 50% of total OPT participants, followed by Chinese students – comprising just over one fifth.

The opportunity to work in the US post-graduation is frequently cited by international students as being vital to the return on investment of a highly expensive US education – a topic discussed by leaders at the recent AIEA conference.

“It’s a risk to come and study in the most expensive place in the world if you aren’t going to get the job you thought you might get… OPT cuts the financial risk of a US degree by 75%,” ICEF chief revenue officer Ian Cann told delegates.

“With OPT, a US degree becomes a lot better in terms of ROI. For an Indian master’s student, OPT reduces the payback period from 15.2 years down to four years,” he said.

As such, a recent survey of more than 1,000 current international students found more than 50% wouldn’t have enrolled in a US institution if it weren’t for OPT.

What’s more, advocates of the program emphasise its role driving US innovation and the complementary job creation in STEM fields, pointing to estimates from the Institute for Progress that its elimination could cause annual losses of $220bn-$440bn within the next 10 years.

The workstream has come under repeated political scrutiny under the Trump administration, though commentators say the program occupies complicated political terrain as coalitions don’t map neatly onto traditional left-right divides.

The latest review is likely to reignite sector fears of the program’s potential elimination, which would thrust current participants into uncertainty and cause prospective students to reevaluate the value proposition of studying in the US. (THE PIE, excluding headline)

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