A growing body of data and litigation highlights how employment authorization for foreign spouses and students intersects with U.S. hiring practices, wage dynamics, and job competition.
By yourNEWS Media Newsroom
Federal immigration programs that authorize employment for foreign spouses and students have become a focal point in debates over labor market competition, wage pressure, and hiring standards in the United States, as new data and legal challenges draw attention to how these policies operate alongside broader economic conditions.
Employment-based immigration pathways such as H-4 spousal work authorization, Optional Practical Training (OPT), Curricular Practical Training (CPT), and the H-1B visa program collectively allow millions of non-citizens to participate in the U.S. workforce. Critics argue that several of these programs permit employment without requiring employers to demonstrate that qualified U.S. workers are unavailable, a safeguard that exists in other areas of labor and immigration law.
A recent WND report noted that the number of students graduating with STEM degrees already exceeds the number of available STEM jobs, even as business groups continue to advocate for expanded access to foreign labor. Federal policy, the report said, has increasingly enabled employers to rely on temporary foreign workers rather than domestic hiring.
One area drawing renewed scrutiny involves employment authorization for H-4 visa holders, who are spouses and unmarried children under 21 of H-1B workers. A federal lawsuit, Doe v. DHS, filed Jan. 8, challenges a Department of Homeland Security rule that ended automatic extensions of Employment Authorization Documents for certain H-4 spouses. While the plaintiffs argue the change disrupts household finances, the case has also highlighted the structure of H-4 work authorization itself.
Unlike the H-1B program, H-4 employment authorization does not require employers to conduct labor market recruitment, test for the availability of U.S. workers, certify prevailing wages, or file job-specific labor condition applications. The policy was created through administrative action in 2015, expanding the authorized labor pool without adding statutory labor protections. Analysts at policy organizations have argued that this framework allows employers to hire H-4 workers without the labor market checks required in other employment-based visa categories.
Similar structural issues apply to OPT and CPT, which allow foreign students to work in the United States during or after their studies. Under these programs, employers are exempt from paying Social Security and Medicare payroll taxes, and no labor market test is required before hiring. These exemptions can reduce labor costs by more than 15 percent compared with hiring U.S. workers. Academic research cited by Georgetown University has found that OPT workers often earn less than similarly situated American workers, suggesting wage substitution rather than labor shortages.
While the H-1B program includes wage attestations, it has also been associated with labor arbitrage models, particularly in technology and staffing sectors. Policy reviews and public reporting have documented cases in which H-1B workers are paid below local median wages and employed in arrangements that later shift work offshore, reducing long-term domestic job creation.
Data released by U.S. Citizenship and Immigration Services provides a broader view of how employment authorization has expanded. Between fiscal year 2022 and the third quarter of fiscal year 2025, USCIS approved more than 9.3 million employment-related applications. This period coincided with widespread layoffs across the U.S. economy.
Of those approvals, 7,216,116 were Employment Authorization Documents issued under Form I-765, which covers categories including H-4 spouses, OPT, CPT, Temporary Protected Status, parole-based authorization, and adjustment-of-status applicants. Another 2,110,994 approvals were employer-sponsored nonimmigrant worker petitions filed under Form I-129, which include H-1B, L-1, O-1, TN, and E-3 visas.
The data shows that approximately 77 percent of employment-related approvals during the period were open-market EADs, while 23 percent were job-specific nonimmigrant petitions. Within the EAD category, about two-thirds fell under “All Other” classifications, encompassing H-4 spouses, OPT, CPT, TPS, and parole-based authorizations.
Economists note that increasing labor supply during periods of reduced demand can intensify competition for available jobs and place downward pressure on wages. Because most EAD categories do not require employers to demonstrate that U.S. workers were unavailable, critics argue that these programs can alter labor market dynamics without the checks built into other hiring systems.
Lawmakers including Sen. Chuck Grassley have warned that employment-based visa programs should not be used to displace American workers or suppress wages, citing enforcement gaps and limited transparency. Additional reporting has examined how some hiring models rely on closed recruitment networks and layered subcontracting arrangements that restrict open competition.
As courts and policymakers consider ongoing litigation and potential reforms, the cumulative effect of employment authorization programs remains central to the debate. The USCIS figures underscore that work authorization operates as an interconnected system, with combined impacts on wages, job access, and labor standards that continue to shape discussions over workforce protection and immigration policy.
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