The HIRE Act or Halting International Relocation of Employment Act is a US bill proposal by Republican Senator Bernie Moreno on September 5, 2025 that could have a drastic effect on Indian students in USA if passed. This bill plans to impose a 25% excise tax on money paid by US companies to foreign companies for services. This proposal seeks to reduce outsourcing and create more jobs for Americans. As per the latest June 2025 US SEVIS Mapping Pool Data, the Ministry of External Affairs of Indian has stated that around 372,424 Indian students are currently enrolled in US universities and colleges.
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With the introduction of the HIRE Act 2025 proposal, Indian students could face significant uncertainties, including taxed OPTs, questionable post-study work options, decreased salaries, and many more. All these new challenges in US have made it quite difficult for international students to study and then work in USA. Read further to understand in depth about the implications of the HIRE Act 2025 for Indian students in USA, if passed.
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The new HIRE Act is a US bill proposal made on September 5, 2025, by the Republican Senator Bernie Moreno. The HIRE Act stands for the Halting International Relocation of Employment Act. The act aims to directly impact the current international labour in the US job market by limiting outsourcing jobs. According to the HIRE Act proposal, all US companies are required to pay a 25% excise duty on payments made for outsourced jobs for international students.
This HIRE Act proposal aims to create more jobs for ‘Americans’ by reducing the international labour services. Majorly, the act will impact directly to international students in the job market, particularly in the IT industry serving American clients. It is a financial burden for American companies to outsource jobs.
Indian students will be drastically impacted by the HIRE Act if the bill passes. Due to increased financial liability to American companies, outsourcing jobs to international students could take a back step. Not directly, but the implications will lead to more challenges for international students in US to find jobs. These ongoing changes in the policies in USA are going to impact Indian students as they are one of the biggest international communities in USA.
Possibly, international students might face difficulties in the US job market, including low salaries, fewer post-study job opportunities after graduation, strong H1B uncertainty, and increased tax liability. The major implications include the introduction of the Dignity Act (proposal), which can lead to thousands of dollars worth of tax liability on international students on OPT, and higher H1B visa fees with strict rules. With around 372,424 Indian students currently studying in US, it is crucial to understand the effects of the HIRE Act on international students, if passed. Here, these are:
American companies might take a step back to hire international students on OPT with the ongoing uncertainty under Trump’s administration. Simply, if hiring OPT workers imposes a higher liability on companies, they might not even be given the chance for a job.
With higher fees, increased scrutiny, and requirements to apply for H1B visas, many employers might not consider Indians for H1B at higher designations. One of the driving reasons of not offering H1B sponsorship is the introduction of a USD 100,000 fee for new H1B visa applications.
If the Dignity Act passes, it will impose a tax liability on OPT workers. With the HIRE Act crisis, along with the OPT tax break ending, international students can be negatively impacted. They can expect a reduction in their current income due to taxes, which is another challenge due to the ever-rising cost of living in US.
If the HIRE Act passes, it could potentially impact international workers even in cases where they are not working for an outsourcing company. If it becomes more expensive to outsource, companies might cut their budget for internships, fresher jobs, lower salaries, particularly for OPT workers or for H1B sponsorships.
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Frequently Asked Questions (FAQs)
The US Dignity Act is a proposal made by the Representatives María Elvira Salazar and Veronica Escobar to end the FICA (Federal Insurance Contributions Act) tax exemption for OPT workers in USA. All international students on the OPT program are exempt from tax liabilities related to Social Security and Medicare. However, if the Dignity Act passes, these students will be imposed with a total of 15.3% tax liability that includes 12.4% contribution to Social Security and 2.9% to Medicare.
No, the HIRE Act do no impose a direct tax liability on students on OPT or internships. It aims to impose a 25% excise tax on outsourcing payments by companies and not on OPT workers. However, they might get indirectly negatively affected by such changes in the US job market.
The HIRE Act is he current proposal by Republican Senator Bernie Moreno that seeks 25% excise tax on payments made by US companies for outsourcing services. It must not be tax-deductible. It is relevant for Indian students because higher financial liability on American companies for hiring foreign labour can lead to fewer job opportunities for them, lower salaries, and other challenges.
On Question asked by student community
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