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EXCLUSIVE: ‘Phantom employees’ scandal spurs GOP crackdown on $36B incentive for companies to bypass Americans

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FIRST ON FOX: The discovery of 10,000 «phantom employees» exploiting a federal work program has helped spur Republicans to tackle the financial incentives behind a foreign worker pipeline costing Americans hundreds of thousands of jobs per year.
Under current federal law, hundreds of thousands of foreign students and employers participating in the Optional Practical Training (OPT) extension program are exempt from paying Social Security and Medicare payroll taxes, which companies are required to pay for domestic workers. This has led to the creation of a «significant financial incentive» for employers to hire foreign OPT workers over Americans.
Republican Rep. Glenn Grothman of Wisconsin introduced a bill Thursday, titled the «OPT Fair Tax Act,» that eliminates that incentive by requiring employers to pay the same Social Security and Medicare payroll taxes paid for American workers. By closing the loophole, Grothman believes the bill «helps create a more level playing field for American graduates entering the workforce.»
The congressman told Fox News Digital that «Americans should not be put at a disadvantage because Washington created a loophole that favors hiring foreign workers over qualified U.S. citizens.» He added that «too many young Americans graduating from our colleges and universities are forced to compete against a system that tilts the playing field against them.»
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Rep. Glenn Grothman, R-Wis., (center) dropped a bill Thursday to kill the financial incentives behind a foreign worker pipeline costing Americans hundreds of thousands of jobs after U.S. Immigration and Customs Enforcement (ICE) uncovered 10,000 «phantom employees» exploiting a federal work program. (Marvin Joseph/The Washington Post via Getty Images)
Grothman’s bill is the House companion to a Senate bill introduced by Sen. Tom Cotton, R-Ark., in September.
Though Cotton’s bill has not passed, OPT has faced increased scrutiny after Acting ICE Director Todd Lyons announced federal investigators uncovered more than 10,000 foreign students connected to «suspect employers» as part of a massive fraud scheme involving the program.
Lyons said that OPT, which lets international students on F-1 visas work temporarily in the country in jobs related to their field of study, had «ballooned into an uncontrolled guest worker pipeline with hundreds of thousands of foreign students working in the United States.»
He said that «as the program size exploded, so has the fraud.»
«Today, we are announcing we have identified over 10,000 foreign students who claim to be working for highly suspect employers, and that’s just among the top 25 OPT employers. This is only the tip of the iceberg,» he said.
The ICE director also said investigators uncovered what he referred to as «phantom employees,» who he said are foreign students who obtained work authorization through OPT but never actually showed up for work at the sites they claimed to work out of.
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Todd Lyons, acting director of Immigration and Customs Enforcement, arrives for the Senate Homeland Security and Governmental Affairs Committee hearing on oversight of ICE, Customs and Border Protection, and Citizenship and Immigration Services in Washington, D.C., on Feb. 12, 2026. (Tom Williams/CQ-Roll Call, Inc. via Getty Images)
Grothman told Fox News Digital that these findings «point to serious vulnerabilities within the OPT program.»
He said that «reports that thousands of foreign students in the OPT program were tied to phantom employees and suspicious employers should alarm every American,» adding, «Right now, the federal government has created a financial incentive to hire foreign workers over Americans.»
Grothman said the scale of the tax preference has been significant. He pointed to data gathered by the technology and industry think tank Institute for Progress, which found that between fiscal years 2017 and 2022, an average of approximately 330,000 students participated in OPT annually. The think tank also estimated that eliminating the tax exemption would increase federal revenue by between $27 billion and $36 billion over a 10-year period.
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A general view of the U.S. Capitol Building from the top of the Washington Monument in Washington, D.C., on May 2, 2026. (Ken Cedeno/Reuters)
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«Congress should be focused on opening doors for young Americans, helping U.S. graduates find good-paying jobs and ensuring employers are encouraged to hire Americans first. Not creating incentives for companies to bypass American talent,» he emphasized.
«The American people deserve to know how so many questionable employers were able to operate within the system for so long,» he continued. «Congress should be prioritizing American workers and restoring integrity to programs that have become increasingly vulnerable to abuse and exploitation.»
jobs, republicans, immigration, social security, congress, house of representatives politics
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World-famous Catholic shrine torched, ‘Devil in a skirt’ scrawled on Virgin Mary statue

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A man has been arrested after one of the world’s most famous Catholic pilgrimage sites was vandalized and partially set on fire, with a statue of the Virgin Mary defaced and the words «Devil in a skirt» scrawled across its pedestal in black, according to reports.
Bosnian police arrested a suspect Tuesday in connection with the overnight vandalism and arson at the Shrine of Our Lady in Medjugorje, according to Vatican News.
Authorities have not released the man’s identity as investigators work to determine a motive and whether he was responsible for other incidents reported at the shrine that same night, the outlet said.
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Police were first called around 4:30 a.m. on July 27 after the face and hands of the statue of the Virgin Mary on Apparition Hill, also known as Podbrdo, were found covered in black paint. (Associated Press)
Police were called around 4:30 a.m. on July 27 after the face and hands of the statue of the Virgin Mary on Apparition Hill, also known as Podbrdo, were found covered in black paint.
The pedestal at the foot of the statue was spray-painted with the English phrase «Devil in a skirt,» while other graffiti and the statue’s hands were painted black.
An outdoor altar nearby was also set on fire near St. James Church, the outlet said.
Surveillance footage reportedly at that location showed a man pouring what investigators believe was gasoline onto the altar before setting it ablaze. The fire was extinguished.
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Police were first called around 4:30 a.m. on July 27 after the face and hands of the statue of the Virgin Mary on Apparition Hill, also known as Podbrdo, were found covered in black paint. (Associated Press)
The two attacks came just days before Medjugorje’s annual youth prayer festival, which is expected to draw more than 50,000 pilgrims from around the world.
In a statement Tuesday, the Medjugorje Parish Office condemned the vandalism and urged Catholics to respond with «prayer, fasting, and forgiveness» rather than anger.
«It is with great sadness that we received the news of the act of vandalism,» the parish said.
Church officials also said cleanup and repairs began immediately so the damaged prayer sites could once again welcome pilgrims.
«The affected areas are being cleaned and restored as quickly as possible,» the parish said, thanking volunteers for helping preserve the shrine as «a place of encounter with God, a place of peace.»
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Church officials also said cleanup and repairs began immediately so the damaged prayer sites could once again welcome pilgrims. (Associated Press)
Rather than calling for retribution, the parish urged the faithful to pray for those responsible.
«We pray for the conversion of the hearts of those who committed this act,» the statement said, asking that God «touch them with His grace and lead them on the path of goodness.»
The parish also appealed for peace, encouraging Catholics «not to return evil for evil,» but instead to bear witness through «love, forgiveness and hope.»
Despite the attack, officials said the shrine remains open, and its regular schedule of Mass and prayer services will continue as planned.
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Located about 85 miles southwest of Sarajevo, Medjugorje became one of the world’s best-known Catholic pilgrimage destinations after six children and teenagers reported seeing apparitions of the Virgin Mary there in 1981.
The Vatican gave the green light for Catholics to continue flocking to Medjugorje offering its approval for devotion at one of the most contested sites of Roman Catholic practice in recent years, The Associated Press reported Tuesday.
roman catholic, religion, vandalism
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Honduras: ENEE advierte que se agota el tiempo para rescatar la estatal mientras Congreso aplaza reforma eléctrica

El gerente de la Empresa Nacional de Energía Eléctrica (ENEE), Guillermo Peña Panting, alertó este martes que el tiempo para rescatar financieramente a la estatal se reduce mientras la reforma al sector eléctrico continúa en discusión en el Congreso Nacional, escenario que, según afirmó, prolonga las pérdidas económicas y retrasa inversiones consideradas indispensables para modernizar el sistema energético del país.
El funcionario sostuvo que, aunque las conversaciones entre las diferentes fuerzas políticas han permitido avanzar en el análisis de la iniciativa, la empresa necesita que las decisiones se adopten con prontitud para poner en marcha cambios estructurales que permitan reducir pérdidas, fortalecer la infraestructura y atraer nuevas inversiones al sector.
«Esperamos que siga la conversación y que se presente el momento para la aprobación. Vemos que hay un espacio para seguir mejorando y tenemos que esperar; ese es el camino, el diálogo abierto y la confianza fortalecida“, manifestó.

De acuerdo con Peña Panting, la estatal enfrenta importantes desafíos financieros que requieren una reorganización del sector eléctrico para habilitar nuevos mecanismos de inversión, especialmente en las áreas de transmisión, distribucióny generación de energía.
El gerente explicó que la separación de las unidades operativas permitiría que cada una pueda gestionar proyectos con mayor agilidad, además de concentrar esfuerzos en la reducción de pérdidas técnicas y no técnicas que afectan las finanzas de la empresa.
Asimismo, sostuvo que contar con un sistema energético más eficiente contribuiría a mejorar la competitividad del país y facilitaría la llegada de nuevas inversiones nacionales y extranjeras.
«Al no haber una oferta energética competitiva en el país se limita la posibilidad de inversión“, afirmó.

El titular de la ENEE recordó que la empresa registra pérdidas cercanas a 40 millones de lempiras diarios, por lo que actualmente se ejecutan medidas para disminuir gastos, reorganizar las finanzas y reducir el endeudamiento.
No obstante, advirtió que esas acciones administrativas no serán suficientes si no se aprueba una reforma integral que permita transformar el funcionamiento del sector eléctrico.
«Si no tomamos las decisiones difíciles vamos a seguir en este problema, y lo que seguirá creciendo no es solo la deuda, sino también la presión para las finanzas públicas del Estado“, expresó.
Mientras el proyecto continúa en discusión legislativa, la estatal asegura que mantiene trabajos de mantenimiento de líneas, reestructuración de circuitos y otras acciones operativas orientadas a mejorar la calidad del servicio y disminuir las pérdidas.
Por su parte, el jefe de bancada del Partido Liberal, Jorge Cálix, reconoció que la reforma energética es necesaria para Honduras, pero afirmó que su bancada no respaldará el proyecto sin antes analizarlo a profundidad y presentar una contrapropuesta.
El congresista sostuvo que los liberales apoyarán únicamente aquellas disposiciones que consideren beneficiosas para la población y propondrán modificaciones en los aspectos que, a su juicio, puedan mejorarse.
«No vamos a salir corriendo, sabemos que es un tema urgente, pero justamente por eso lo vamos a hacer despacio y con buena letra“, declaró.

Cálix explicó que la bancada consultó a especialistas internacionales de Guatemala, Panamá, Costa Rica y El Salvadorpara conocer experiencias sobre reformas energéticas antes de definir una postura definitiva.
Aunque ambas partes coinciden en la necesidad de transformar el sector eléctrico, mantienen diferencias sobre la velocidad con la que debe aprobarse la iniciativa.
Mientras la ENEE sostiene que cada día de retraso incrementa las pérdidas económicas y dificulta el rescate financiero de la empresa, el Partido Liberal insiste en que una o dos semanas adicionales de análisis permitirán construir una propuesta más sólida y evitar decisiones apresuradas que puedan afectar a los consumidores y al sistema energético nacional.
Corresponsal:Desde Tegucigalpa, Honduras
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GOP governor survives challenge from Bitcoin evangelist in gubernatorial runoff

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South Dakota Gov. Larry Rhoden fended off a primary challenge from businessman and Bitcoin evangelist Toby Doeden on Tuesday, winning the first gubernatorial primary runoff in state history and advancing to the November general election.
The Associated Press called the race for Rhoden within minutes of final polls closing. He had received 70.5% of the vote compared with Doeden’s 29.5% at the time it was called, with approximately 25% of the expected vote counted.
The election marked the first time South Dakota voters were asked to settle a gubernatorial nomination through a primary runoff. State law requires a runoff between the two leading candidates when no contender for governor, U.S. Senate or U.S. House receives at least 35% of the primary vote.
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South Dakota Governor Larry Rhoden (left) and primary challenger Republican candidate for governor Toby Doeden (right) (Toby Doeden for South Dakota/Getty Images)
The head-to-head contest followed a four-way June primary in which Doeden finished first with 30.6% of the vote and Rhoden placed second with 25.2%, leaving both short of the 35% needed to secure the nomination outright. Rhoden became governor in early 2025 after Kristi Noem left to join the Trump administration, while Doeden entered the race as a businessman and political newcomer.
Doeden also built a public profile as a Bitcoin evangelist. He said he began investing «very, very heavily» in the cryptocurrency around 2020 after devoting roughly 500 hours to researching it, eventually converting nearly all the cash reserves from his companies that he did not expect to need into Bitcoin.
«I will buy bitcoin forever, every single day,» Doeden previously said on his podcast, according to the South Dakota Searchlight. «We mine bitcoin, we buy bitcoin.»
Doeden also supported legislation that would have allowed the South Dakota Investment Council, which manages public employee pension funds and other state investments, to invest in Bitcoin. He went further by calling for South Dakota to establish a state Bitcoin reserve – a move state investment and budget officials opposed.
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Tuesday’s winner advances to face former Democratic state Sen. Dan Ahlers in November. South Dakota has not had a Democratic governor since Harvey Wollman left office in 1979, and no Democrat has been elected to the office there since Richard Kneip won re-election in 1974. Wollman became governor automatically as lieutenant governor when Kneip resigned.
In the run-up to Tuesday’s primary runoff, property taxes were among the defining issues of the campaign. Doeden campaigned on eliminating property taxes, while Rhoden’s campaign portrayed Doeden’s proposal as fiscally reckless, arguing it could leave local governments and schools with a major funding shortfall.
Meanwhile, Rhoden’s campaign highlighted other tax relief measures that the governor signed back in March, which Rhoden’s campaign website describes as the «largest» property tax cut in the state’s history.

South Dakota Governor Larry Rhoden speaks during a rally at Mount Rushmore National Memorial on July 03, 2026 in Keystone, South Dakota. (Chip Somodevilla/Getty Images)
During the race, Doeden portrayed Rhoden as part of South Dakota’s entrenched political class, declaring after the June primary that «the career politicians told me» an outsider could not break through against three longtime officeholders.
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Rhoden pushed back on the attack, saying Doeden was trying to «make hay» out of calling him a career politician and describing that characterization as «such a warped viewpoint,» during an interview with the South Dakota Public Broadcasting network. Rhoden argued that his years in the Legislature gave him practical experience writing laws and then returning home to live under them.
President Donald Trump did not publicly weigh in with an endorsement in the runoff, according to a review by Fox News Digital. Trump thanked Rhoden by name during his July 3 remarks at Mount Rushmore but did not mention the governor’s race. Doeden, meanwhile, campaigned as a «fierce Trump supporter» who said he would help implement the president’s «America First agenda.»
south dakota, gubernatorial, state and local primaries, elections, politics
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