H-1B visa for $100k: How OPT program is US tech industry's bypass to still hire foreign workers

The Optional Practical Training (OPT) program has long been a gateway for foreign students, particularly from countries like India, to gain work experience in the U.S. after graduation. However, critics argue that it has become a turnaround that U.S. tech giants use to continue sourcing foreign skilled workers, bypassing the intent of the H-1B visa program and suppressing wages for American workers in the process.

OPT: A Loophole for U.S. Tech Giants

The Trump administration’s latest H-1B visa policy, which imposes a hefty $100,000 annual fee on foreign workers seeking entry into the U.S., has sparked debate about the effectiveness of current immigration programs. While the policy is intended to curb the influx of foreign workers, experts point out that the real loophole lies in the OPT program, which allows international students to work in the U.S. for up to three years after graduation, without the same restrictions and costs tied to the H-1B program.

Tech giants like Google, Microsoft, and Amazon have increasingly relied on OPT to maintain their foreign workforce, especially in high-demand STEM fields like software engineering and data science. These companies often hire students directly from universities on OPT status, sidestepping the expensive and cumbersome H-1B visa process. By doing so, they secure foreign talent at a fraction of the cost, as OPT workers are not subject to the $100,000 fee that will apply to H-1B visa holders under the new policy.

In a now locked post on X, U.S. Tech Workers posted, “If the Trump administration truly wants to help American tech workers and STEM graduates, it needs to end the OPT program, which was created entirely through regulation. Otherwise, it isn’t serious about fixing this issue.” The worker emphasised that while the new H-1B fee hike may curb some foreign labour inflow, the continued use of OPT by U.S. tech firms will allow them to maintain their foreign workforce without addressing the core problem.

The Growing Dependence on OPT

The growth of foreign STEM workers in the U.S. has been significant, with the number of foreign workers in critical sectors doubling between 2000 and 2019. The OPT program has played a pivotal role in this shift. According to the American Immigration Council's fact sheet titled "Foreign-born STEM Workers in the United States.", the foreign share of the workforce in computer and math occupations grew from 17.7% in 2000 to 26.1% in 2019. This surge is largely attributed to the abuse of OPT, which allows companies to hire foreign students who may not have had the chance to stay in the U.S. otherwise.

By hiring OPT workers, U.S. tech giants gain access to a highly skilled labor pool without the constraints of the H-1B visa system. The post by US tech workers pointed out that companies like Google and Microsoft avoid the H-1B visa fee by sourcing their foreign workers through OPT, which bypasses the challenges of the H-1B lottery system. This practice, however, also undercuts American workers, particularly recent graduates, who face higher unemployment rates in tech fields.

However, this practice of hiring OPT workers has led to accusations that U.S. tech companies are using foreign labor as a way to keep costs down while displacing American workers.