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Why US is cracking down on a post-study work programme that Indians depend on for H-1B visas

16 May 2026
2 min

Overview of the Current Situation

For many years, Indian students have pursued the American dream through a clear pathway involving a US degree, work under Optional Practical Training (OPT), and eventually, an H-1B visa leading to permanent residency. However, this route faces significant challenges due to recent developments surrounding the OPT program.

OPT Program and Its Importance

  • OPT allows international students on F-1 visas to work in the US post-graduation in their field of study.
  • Regular OPT permits 12 months of work, while STEM graduates receive an additional 24-month extension.
  • Indians constitute nearly half of all OPT participants.
  • OPT is crucial as it bridges American education with long-term US employment opportunities.

Recent Concerns and Allegations

The OPT program has come under scrutiny following allegations of systemic fraud. Acting Immigration and Customs Enforcement Director Todd Lyons labeled OPT as a “magnet for fraud,” with over 10,000 potential fraud cases identified. Issues highlighted include:

  • Shell companies and fake jobs.
  • “Pay-to-stay” arrangements.
  • International financial fraud networks.

This scrutiny is heightened by a weakened tech job market and immigration policy uncertainties, discouraging international enrollment in US universities.

Investigations and Legal Concerns

  • Federal investigations are targeting systemic abuses, where fraudulent employers “hire” OPT students to maintain legal status.
  • Immigration attorneys anticipate increased scrutiny, with Requests for Evidence (RFEs) for status change or extension applications.
  • Common issues include fake employment arrangements, shell companies, and non-physical worksites.

Impact on Indian Students and Employers

Legitimate Indian students now face heightened scrutiny, with increased demands for proving job legitimacy. Documentation such as job offers, employment agreements, and daily responsibilities proof is crucial.

  • Staffing consultancies and third-party placement companies may face close examination.
  • Particular concern for Indian IT firms regarding the legitimacy of employer-employee relationships and physical worksites.

Challenges for Laid-off H-1B Workers

Laid-off H-1B workers face difficulties in leaving and returning to the US, with changes in USCIS processing visitor status applications. New barriers include a significant fee on certain H-1B petitions for workers outside the US.

Advised Alternatives and Future Strategies

Immigration lawyers advise Indian students to reconsider the ROI of an American degree and suggest planning immigration strategies earlier. Potential alternatives include:

  • O-1 visas for highly skilled individuals.
  • Cap-exempt H-1Bs, EB-1A green cards, and EB-2 National Interest Waivers.

Williams particularly recommends the O-1 route, noting its high approval rating and year-round filing option.

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EB-2 National Interest Waiver (NIW)

A U.S. employment-based green card category for individuals with advanced degrees or exceptional ability who can demonstrate that their work is in the national interest of the United States, allowing them to bypass the labor certification process.

EB-1A green card

A U.S. employment-based green card category for individuals with extraordinary ability in the sciences, arts, education, business, or athletics, who have demonstrated sustained national or international acclaim.

Cap-exempt H-1Bs

H-1B visas that are not subject to the annual numerical cap (lottery system) and can be filed by certain employers, such as those affiliated with universities or non-profit research organizations.

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