Today, Congressman Glenn Grothman (R-WI) introduced the OPT Fair Tax Act, legislation that will close a perverse loophole that harms American workers. Under current law, foreign workers in the Optional Practical Training (OPT) program are exempt from paying Social Security and Medicare payroll taxes, creating an incentive to hire these foreign workers over American citizens. The OPT Fair Tax Act will ensure that OPT employment is treated the same as other employment under federal payroll tax law.
End the FICA payroll tax exemption for foreign workers in the Optional Practical Training program so OPT employment is treated the same as other employment under federal payroll tax law.
Occurrences
Grothman Introduces OPT Fair Tax Act to End Tax Loophole Favoring Foreign Workers Over American Graduates
introduced the OPT Fair Tax Act, legislation that will close a perverse loophole that harms American workers. Under current law, foreign workers in the Optional Practical Training (OPT) program are exempt from paying Social Security and Medicare payroll taxes
Evidence
Grothman said he introduced the OPT Fair Tax Act on May 21, 2026. The release states that under current law, foreign workers in Optional Practical Training are exempt from Social Security and Medicare payroll taxes, and that the bill would ensure OPT employment is treated the same as other employment under federal payroll tax law by ending the FICA exemption.
IRS Publication 519 says that nonresident alien students admitted in F-1 status who are allowed to work for practical training are generally not subject to Social Security or Medicare taxes unless they are considered resident aliens. That reflects the exemption still being in force in current IRS guidance.
Assessments
Grothman took concrete legislative action by introducing the OPT Fair Tax Act on May 21, 2026, and the bill directly matched the promise to end the FICA payroll tax exemption for Optional Practical Training workers. But the evidence shows only introduction, not enactment, and current IRS guidance still indicates that qualifying F-1 practical training wages generally remain exempt from Social Security and Medicare taxes for nonresident aliens. In a federal promise context, that is a serious attempt without the promised policy outcome being delivered.