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CPTDogNov 12, 2024 9:30:00 AM9 min read

How Trump's Policies Will Impact Indian Students on OPT, H-1B, and H-4 Visas in 2025 and Beyond

How Trump's Policies Will Impact Indian Students on OPT, H-1B, and H-4 Visas in 2025 and Beyond
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Introduction: For the thousands of Indian students studying in the U.S., recent political developments bring significant concerns. With Donald Trump's return to the White House, two primary issues could reshape the future for international students: potential changes to the Optional Practical Training (OPT) extension for STEM graduates and the possible shortening of student visa durations. Both of these changes could impact career prospects, financial planning, and the overall experience of studying in the U.S.

Table of Contents

  1. Trump’s Previous Impact on International Students
  2. Potential Changes to OPT and STEM OPT Extensions
  3. Higher Denial Rates for H-1B and H-4 Visas
  4. Possible Shortening of Student Visa Durations
  5. Trump’s Green Card Promise for Graduates
  6. Financial and Social Implications for Indian Students
  7. The Upside?
  8. What Indian Students Can Do?

A Look Back: The Impact of Trump’s Previous Term on International Students

In 2017, in the early months of Trump's presidency, uncertainty for international students was palpable. On a recruiting trip to India, Alan Cramb, president of Illinois Institute of Technology, fielded questions from worried parents who were no longer just concerned about tuition or housing but also about their children's future in the U.S. Trump’s inaugural promise of “America First,” coupled with early policies like travel bans and suspending the refugee program, made families question whether the U.S. was still a safe and promising option for international education.

This sentiment resonated across U.S. campuses. The Illinois Institute of Technology, where nearly half of the students were international, saw a 25% decline in international enrollments between 2016 and 2018. Many students, uncertain of their future in the U.S., began considering returning to their home countries after graduation. This shift was part of a broader trend: new international student enrollments in the U.S. declined for three consecutive years starting in 2016, with drops of 3%, 7%, and 1%, respectively.

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Potential Changes to OPT and STEM OPT Extensions

The OPT program is currently the main post-graduation work opportunity for international students in the U.S., allowing them to work for one year after graduation. STEM students (science, technology, engineering, and mathematics) benefit from a two-year extension, giving them a total of three years to gain work experience. This extension was recently upheld by the U.S. Supreme Court in October 2023, which reassured many students and universities.

However, during Trump’s first term, Stephen Miller, a senior advisor, attempted to restrict OPT and eliminate the STEM extension. Now that  Trump returns to office, this could be revisited, as Miller’s influence on immigration policy is likely to resurface. As immigration attorney Ashwin Sharma noted, “Dismantling the OPT pathway would disrupt individual careers and also erode the innovation pipeline that fuels American technological leadership.” With OPT and the H-1B visa pathway being critical for many students, any restrictive changes would significantly impact their U.S. career prospects.

Higher Denial Rates for H-1B and the Threat to H-4 Visas

Trump’s previous term substantially increased H-1B visa denials and Requests for Evidence (RFEs). From 2016 to 2020, H-1B denial rates rose to an average of 18%, compared to 3.2% under the Biden administration. The rate of RFEs also tripled under Trump, peaking at 34%. A return to such policies could make it more difficult for high-skilled immigrants, including international students, to secure employment in the U.S.

H-4 visa holders (spouses of H-1B workers) also face potential restrictions. The Obama-era rule allowing H-4 spouses to work was targeted for elimination by Trump officials, though it wasn’t ultimately rescinded. Now that Trump is re-elected, legal experts expect renewed attempts to restrict H-4 work authorizations, which would impact families relying on dual incomes.

Possible Shortening of F-1 Visa Durations

Currently, international students are allowed to stay in the U.S. as long as they maintain their student status, thanks to the "duration of status" policy, which provides flexibility without a set expiration. In 2020, the Trump administration proposed limiting student visa durations to four years, and in some cases, just two years. Analysis says it is most likely Trump will revisit this proposal now that he is back in the Oval Office.

Such a policy would not only increase administrative challenges but also add financial burdens for students who may need extensions to complete their studies.

Rajiv S. Khanna, an Arlington-based immigration attorney, commented on the proposal, saying, “For Indian and other international students, the proposed fixed tenure creates a problem. A four-year cap is definitely shorter than a PhD or even a bachelor’s degree course, as students may opt for an extra semester. For students already here, applying for extensions would increase expenses and, more importantly, add an additional element of uncertainty.”

This visa limitation proposal caused widespread concern. The Department of Homeland Security cited it as a way to combat visa overstays, yet colleges and universities saw it as another barrier for international students.

Trump’s “Green Card for Graduates” Promise

In a June podcast, Trump suggested that international students graduating from U.S. universities should receive green cards to stay in the country. While this sparked hope among some students, his campaign later clarified that this would only apply to “thoroughly vetted” graduates who wouldn’t displace American workers or lower wages. Many saw this as more of a campaign talking point than a concrete policy.

Financial and Social Implications for Indian Students

According to the Open Doors Report for 2022-23, there are currently around 270,000 Indian students in the U.S., with nearly 69,000 participating in OPT programs. However, America’s share of global international students has been declining, from 28% in 2001 to just 21% last year, as other countries capitalize on U.S. policy uncertainty. Canada, the U.K., and Australia have all introduced clear residency pathways, making them more attractive to international students.

International students contribute billions to the U.S. economy. In 2018 alone, they added roughly $41 billion, supporting thousands of jobs. Since 2016, however, the decline in new international student enrollments has cost the U.S. nearly $12 billion and over 65,000 jobs, according to NAFSA. For colleges and companies that rely on international talent, the broader impact is hard to quantify. As Cramb of IIT put it, “What we are doing is taking away a richness to the education experience for everyone.”

The Upside?

While the political landscape is uncertain, international students in the U.S. may continue to face challenges in securing work opportunities and maintaining their status. With a Trump administration on the horizon, policies around OPT, student visas, and immigration could again come under scrutiny. For Indian students and others seeking education and career growth in the U.S., staying informed and consulting with immigration experts will be crucial in navigating the changes ahead.

Perspectives on the future are not uniformly pessimistic. While some worry about the potential financial strain on higher education and a possible decline in campus diversity, others are more optimistic. A recent survey by Intead and Studyportals found that a sizeable portion of international students are now less concerned about the U.S. political climate than before. 30% of surveyed students indicated they would be more likely to study in the U.S. under a Trump administration, citing a belief in stronger career prospects and economic growth under his policies. Nevertheless, 44% preferred a democratic presidency, while 42% said it wouldn’t affect their decision.

Furthermore, The Economic Times reported that the Trump administration could introduce policies aimed at lowering taxes, reducing regulations, and easing restrictions to stimulate business. Karthikeyan K, Director of Permanent Recruitment at Adecco, suggests that such policies could have a positive impact on India’s job market by creating opportunities in sectors like IT, pharmaceuticals, and manufacturing. However, he also cautioned that labor standards might be deprioritized in favor of geopolitical goals, potentially impacting the value of labor and the demand for contingent services.

What This Means for International Students

International students studying in the U.S. should stay optimistic yet prepared, ready to adapt to any changes that may come. With resilience and strategic planning, they can continue pursuing their educational and career goals, contributing to the U.S. innovation landscape.

The future of U.S. immigration policies and their impact on international students may hinge on a balance between conservative anti-immigration sentiments and the country’s economic demands. Many Indian students and tech professionals feel hopeful about Trump’s return to office, seeing potential advantages in the strong relationship between Indian Prime Minister Modi and Trump. Some believe this rapport could give Indian tech workers an edge over immigrants from other countries. Others argue that Trump’s economic focus may work in favor of high-skilled immigrants, especially since sectors like technology and engineering rely heavily on international talent.

For students navigating this challenging landscape, finding ways to remain legally employed is essential. The limited availability of H-1B visas—currently with a selection rate of about 25%—creates significant uncertainty. Recent news about billionaire Elon Musk’s potential issues with U.S. citizenship, reportedly due to past misuse of an F-1 visa, underscores the importance of adhering strictly to immigration rules. Even minor missteps can have long-term consequences, highlighting the unforgiving nature of the U.S. immigration system.

How to "Stay Legal and Employed" Through the Turbulence?

One option for international students to maintain legal employment status while continuing their studies is Day 1 CPT. Day 1 CPT programs allow students to work in their field of study from the start of their program, providing immediate work authorization. This can be a lifeline for students who face uncertainty with the H-1B lottery or want to accumulate work experience in the U.S. without relying solely on OPT.

Day 1 CPT offers unique advantages, especially in uncertain times:

  1. Immediate Work Authorization: Unlike OPT, which may have delays, Day 1 CPT enables students to start working as soon as they enroll, ensuring they can continue their careers and earn income without gaps.

  2. Flexible Program Structure: Day 1 CPT programs are often offered by hybrid or executive programs, designed for students who wish to balance work and study. This structure can be especially valuable for those who need work experience to stay competitive in the U.S. job market.

  3. Extended Employment Options: With H-1B visa limitations, Day 1 CPT provides an alternative path for those who want to stay employed in the U.S. for longer, without relying solely on the annual H-1B lottery.

While Day 1 CPT is a valuable option, students should carefully choose accredited institutions and ensure their programs comply with F-1 regulations to avoid immigration issues. Remaining legally employed and in good standing with the U.S. immigration system is critical, especially under a conservative administration that may prioritize stricter immigration policies.

If you are interested in learning more about these Day 1 CPT programs, book a consultation with our experts. CPTDog was founded by international students for international students, our consultations are 100% free. 

 

 

 

 

 

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CPTDog

A former international student turned entrepreneur with 12 years of experience navigating the immigration journey from F1 to Green Card.

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