Potential US plan might decrease take-home pay for foreign students participating in OPT program
The Dignity Act of 2025, a bipartisan immigration reform bill, is making waves in the United States. Proposed by a group of 21 US lawmakers, led by Congresswoman María Elvira Salazar and Congresswoman Veronica Escobar, the bill focuses on border security, asylum reform, and broad reforms to legal immigration, including employment- and student-related visas.
However, there is no specific mention in available summaries about changes to the taxation of Optional Practical Training (OPT) foreign students in the U.S. or direct impacts on OPT taxation.
The OPT program, which allows F-1 international students to work temporarily in the U.S. in a field related to their studies, traditionally depends on IRS rules and tax treaties, not directly by immigration reform bills.
The Dignity Act includes provisions aimed at reforming the immigration system broadly. It reforms asylum adjudication, enhances border security and enforcement measures such as mandatory E-Verify, provides pathways to legal status for undocumented immigrants under a new "Dignity Program" but not direct citizenship, and addresses green card backlogs with a goal to eliminate them by 2035.
The bill also includes updates relevant to employment-based visas and student visas under the "American Prosperity & Competitiveness" section, which supports high-skilled immigrants and families. However, details on tax matters for OPT are not mentioned in the bill summaries.
Jessica Vaughan, the Center's Director of Policy Studies, has questioned the current form of the OPT program. The Trump administration and certain lawmakers have been expressing calls for the termination of the OPT program.
It is likely that the bill does not address this tax issue or it is not a highlighted provision. For the most current status on OPT taxation or immigration bills impacting it, targeted IRS guidance or legal immigration tax specialists would be the best resource.
In summary, the Dignity Act of 2025 covers broad immigration reform including student visa improvements but does not specifically propose changes to OPT foreign students' taxation in currently available descriptions.
- Given the provisions of the Dignity Act of 2025, it seems that there are no direct changes to the taxation of Optional Practical Training (OPT) foreign students mentioned in the bill's available descriptions.
- Despite the bill's focus on employment-based and student visas, details on tax matters related to OPT remain unspecified, suggesting thateducation-and-self-development aspects such as taxation of OPT foreign students might not be a highlighted provision in the Dignity Act of 2025.
