WASHINGTON, D.C. – FWD.us President Todd Schulte issued the following statement today after the Department of Homeland Security (DHS) published a Notice of Proposed Rulemaking (NPRM) to establish a $70,000 tax on Optional Practical Training (OPT):
“This policy, if implemented, would be a dramatic, self-defeating step to forfeit the United States as a destination in the global race for talent. By drastically raising the cost of OPT, America is intentionally pricing itself out of the global market for top talent, especially in STEM fields. The average American may not understand how critical OPT is for America’s ability to lead for years to come, but we should be clear how devastating this step would be.
“DHS is proposing to charge U.S. colleges and universities $70,000, per student, to simply start the OPT process, and an additional $30,000 for each extension, including the 24-month STEM extension.
“DHS claims that the tax could generate $12.8 billion annually for the government’s coffers—none of which would be used to administer OPT or enforce laws protecting the program’s integrity. Generating these sorts of taxes is Congress’ responsibility, not federal agencies. This is a clear overreach of DHS’ authority.
“DHS also states clearly that the goal of the absurdly high charge is to discourage universities and students from participating in OPT. As with the H-1B taxes and related policies, it is clear that the goal is not actually to generate revenue, it’s to kill the program.
“Leaders in both parties in Congress need to see clearly what is happening. All Americans will suffer for it.”
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