Bill · S. 2940· Senate(119-S-2940)
OPT Fair Tax Act
- Introduced
- 9/30/2025
- Last activity
- 9/30/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Tom Cotton
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the OPT Fair Tax Act, proposes amendments to the Internal Revenue Code of 1986 and the Social Security Act. It aims to change how employment is treated for specific nonimmigrants. Specifically, it targets F-1 visa holders who are participating in optional practical training. The bill would ensure that such service is not covered under certain existing tax and social security provisions. These changes would take effect for services performed in calendar months starting after the bill is enacted.
Yes· 3 of 4
Does this strengthen Social Security?+2
The bill increases funding for the Social Security system by requiring contributions from F-1 visa holders in optional practical training.
Does this reduce what the federal government owes?+2
The bill increases federal revenue by applying Social Security and FICA taxes to F-1 visa holders in optional practical training.
Would retired people be better off under this?+1
The bill increases the total pool of contributions into the Social Security system.
The opposite· 3 of 7
Would immigrants be better off under this?-4
Nonimmigrant F-1 visa holders will face increased financial burdens due to the requirement to pay social security and payroll taxes.
Would people in their twenties and thirties be better off under this?-3
F-1 visa holders participating in optional practical training are typically young adults who will now see a reduction in take-home pay due to new tax obligations.
Would Asian Americans be better off under this?-3
Since many F-1 visa holders are of Asian descent, this bill disproportionately affects this demographic through new taxation.
Who it would affect, and how
Potential Positive Impacts for People
- Changes to tax and social security obligations: By amending Section 3121(b)(19) of the Internal Revenue Code of 1986 and Section 210(a)(19) of the Social Security Act, the bill alters how service performed by F-1 visa holders in optional practical training is treated regarding taxes under the Federal Insurance Contribution Act and the Social Security Act (Section 2).
Potential Negative Impacts for People
- Exclusion from certain tax and social security protections: The bill amends the Internal Revenue Code of 1986 and the Social Security Act to ensure that service performed by an alien on an F-1 visa participating in optional practical training is no longer included in the current descriptions of employment for these acts (Section 2(a) and Section 2(b)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Retirees+1Good For Immigrants-4Good For Asian Americans-3Good For Students-3Good For Young Adults-3Good For Business Owners-2Good For Low Income Households-2
- Social Issues And Justice
- Improves Social Security+2
- Economy And Finance
- Reduces National Debt+2Improves Fiscal Responsibility+1Increases Corporate Taxes-2
- 9/30/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.