House GOP Bill Targets Tax Break After ICE Flags OPT Fraud
On Thursday, May 21, 2026, Rep. Glenn Grothman introduced the OPT Fair Tax Act in the House to end the payroll-tax exemption for employers of Optional Practical Training workers.[1]
Acting ICE Director Todd Lyons said investigators tied more than 10,000 foreign students to suspect OPT employers, including "phantom employees" who never showed up for claimed jobs.[1] Lyons called OPT an "uncontrolled guest worker pipeline" and warned fraud appears to be rising as hundreds of thousands of foreign students work in the United States.[1]
Sen. Tom Cotton introduced a similar Senate proposal in September.[1] Grothman's House bill mirrors Cotton's measure and GOP backers said the newly disclosed ICE findings gave the proposal fresh momentum.[1]
Fox framed the move as a GOP crackdown on a roughly $36 billion incentive that critics say lets companies bypass American workers.[1]
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📌 Key Facts
- On Thursday, May 21, 2026, Rep. Glenn Grothman introduced the OPT Fair Tax Act in the House.
- The bill would end the current exemption from employer Social Security and Medicare payroll taxes for workers on Optional Practical Training visas.
- Acting ICE Director Todd Lyons said investigators found more than 10,000 foreign students tied to suspect OPT employers, including "phantom employees" who never showed up for the jobs claimed.
- Lyons characterized OPT as an "uncontrolled guest worker pipeline" with hundreds of thousands of foreign students working in the U.S. and rising fraud.
- The House bill mirrors a Senate proposal introduced by Sen. Tom Cotton in September but adds momentum after the newly disclosed fraud findings.
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