Dignity Act of 2025 could require international graduates to pay Social Security and Medicare taxes
A proposed immigration reform in the US Congress, the Dignity Act of 2025, could end the long-standing tax exemption for international students working under the Optional Practical Training (OPT) programme. If passed, the bill would require foreign graduates to pay Social Security and Medicare (FICA) taxes, a move that has sparked concerns among students, universities, and immigrant advocacy groups, reported gujaratsamachar.com.
Bill seeks to make F-1 visas dual intent, impose FICA taxes on OPT participants
The bill’s summary states that undocumented immigrants could earn legal status by passing background checks, paying back taxes, and meeting other requirements, including restitution payments.
-
Alongside these reforms, the legislation proposes changes to F-1 student visas—making them “dual intent” so students can apply for US permanent residency without proving plans to return to their home countries
OPT allows F-1 students to work in their field of study for up to 12 months, with STEM graduates eligible for a 24-month extension, bringing the total to 36 months. Currently, OPT participants are exempt from FICA taxes, which include Social Security at 6.2% (up to the $1,68,600 wage cap) and Medicare at 1.45% (no cap). Under the proposal, a graduate earning $176,000 would pay $10,453.20 in Social Security and $2,552 in Medicare contributions—totalling $13,005.20 annually.
If approved, the change would increase the financial burden on foreign graduates, who would still need to qualify for employment-based visas to remain in the US after OPT ends.
