US universities to face fresh J-1, OPT scrutiny? What Trump admin's latest warning mean for international students

The U.S. Labor Department may add higher education to its review of employment-based immigration programs.

The US Department of Labor's Inspector General, Anthony D'Esposito, has signaled that universities could become the next focus of the Trump administration's expanding investigation into employment visa programs, questioning whether colleges are using J-1 exchange visitors and Optional Practical Training (OPT) workers to reduce labor costs instead of hiring Americans.

International students face fresh uncertainty as US Labor watchdog turns attention to J-1 and OPT workers. (Unsplash)

In a post on X, D'Esposito wrote: "Are universities saving tens of millions of dollars by using J-1 and OPT workers instead of American workers? And are those programs being used the way the law intended?" He tagged the White House Fraud Task Force and suggested the issue was "worth investigating."

The remarks do not announce a formal investigation, but they represent the clearest indication yet that higher education may be added to the Labor Department watchdog's broader review of employment-based immigration programs.

Why J-1 and OPT are under scrutiny

The J-1 visa allows foreign nationals to participate in approved exchange programs, including research, teaching and academic training. OPT permits eligible F-1 international students to work in the US for up to 12 months after graduation, with STEM graduates able to qualify for a 24-month extension under existing rules.

The Department of Homeland Security's new fixed-term admission rule is set to take effect on September 15, 2026. DHS says the rule will replace the longstanding “duration of status” system for F-1 students and J-1 exchange visitors with fixed periods of admission and new extension-of-stay requirements.

The administration was weighing a $100,000 fee for international graduates seeking to work through Optional Practical Training (OPT). The fee is still under consideration and is not currently an active OPT requirement.

Part of a wider immigration enforcement push

D'Esposito's comments follow the Labor Department's ongoing probe into alleged H-1B and PERM visa fraud. Since taking office in January 2026, the Inspector General has expanded investigations into employer visa abuse, with officials saying dozens of subpoenas have already been issued in related cases.

For Indian students, the largest international student group in the United States, the scrutiny is particularly significant. According to the Institute of International Education’s Open Doors 2025 report, 363,019 students from India studied in the US in 2024/25, making India the country’s leading source of international students.

The latest development is significant because many graduates rely on OPT as the primary pathway to gain US work experience before transitioning to H-1B status. Any future policy changes targeting university hiring or OPT enforcement could therefore have wide-reaching implications, though no new rules have been announced.