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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.»
DOJ CALLS FOR TIPS ON EMPLOYERS FAVORING FOREIGN WORKERS IN HIRING PRACTICES
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.
TRUMP-BACKED HOUSING BILL CLEARS HOUSE AFTER GOP DEFIES SENATE PRESSURE CAMPAIGN
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.
GOP BILL TARGETS BLUE STATE FOR BILLIONS IN COVID-ERA UNEMPLOYMENT DEBT DUMPED ON BUSINESSES
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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Sen. Tom Cotton urged the Justice Department to investigate a covert campaign linked to China designed to «kneecap» America’s rapidly expanding artificial intelligence infrastructure in a letter obtained exclusively by Fox News Digital.
In the letter to Acting Attorney General Todd Blanche, the Arkansas Republican calls for federal investigators to examine whether foreign actors are attempting to shape U.S. public opinion and policy against data centers and AI development as Washington and Beijing compete for dominance in artificial intelligence.
As a network of organizations supported by far-left activist Jodie Evans (second from left) and her husband Neville Roy Singham (right) protest America’s AI development, data centers and other technology advancements, Sen. Tom Cotton (left) sends a letter to Acting Attorney General Todd Blanche, urging him to investigate the groups for possible violations of the Foreign Agent Registration Act (FARA). (Bill Clark/CQ-Roll Call, Inc via Getty Images, Chip Somodevilla/Getty Images, Dave Kotinsky/Getty Images)
«Recent reports show that Communist China is attempting to influence our policy and public opinion on data centers. The reason is obvious: they want to kneecap our processing power to win the AI race,» Cotton told Fox News Digital.
«Americans should decide their own future free of communist propaganda. I’m encouraging the Department of Justice to investigate,» Cotton said.
REPORT: CHINESE PROPAGANDA, SINGHAM NETWORK, FOREIGN DARK MONEY LINKED TO CAMPAIGNS AGAINST DATA CENTERS
The Bitcoin Policy Institute released a report alleging that nonprofits aligned with Chinese interests are driving a campaign against U.S. data centers. (Bitcoin Policy Institute)
Cotton’s request follows the release of a report last week from the Bitcoin Policy Institute, a think tank based in Washington, D.C., alleging that Chinese state media, foreign-funded advocacy groups and a network of organizations funded by American tech tycoon Neville Roy Singham have spent years building opposition to U.S. data center construction and AI infrastructure projects.
Singham, an avowed Marxist and the founder of a Chicago-based company, Thoughtworks, that he sold in 2017, now lives in Shanghai, and has become a growing focus of congressional scrutiny and federal investigations. In March, as members of the Singham network were journeying to Havana to support the Communist Party of Cuba, Earlier this year, Fox News Digital published a five-part series documenting how Singham has funneled $278 million into a series of nonprofits, including groups at the heart of the protests against AI, data centers and technology firms in the U.S.
As Fox News Digital has reported, 501(c)(3) nonprofits from the Singham network, including CodePink, the People’s Forum, Tricontinental and BreakThrough News, have participated and led campaigns opposing AI development, semiconductor export controls and large-scale data center projects. Singham, a self-avowed communist, started pumping the money into the groups after his 2017 marriage to Jodie Evans, the co-founder of CodePink.
POWER COUPLE OF CHAOS: HOW A TYCOON AND ACTIVIST BUILT A ‘REVOLUTIONARY BASE’ AT THE HOUSE OF SINGHAM
For years, groups funded by Singham have worked closely with two self-described communist groups in the U.S. — the ANSWER Coalition and the Party for Socialism and Liberation — that have organized foot soldiers to protest major U.S. technology, defense and logistics companies, such as Palantir Technologies, Lockheed-Martin and Google, to try to name-and-shame the firms for doing business with the U.S. government on issues from immigration to global geopolitics where China has major interests, including in Israel, Iran, Venezuela, Cuba, South Korea and even Greenland.
Pro-China protestors have seized on high electrical costs associated with operating a data center. One of the key themes of new protests is the rising electricity bills that consumers have been seeing in recent months. Earlier this year, Cotton introduced a bill, called the «DATA Act of 2026,» that would lift regulatory controls to allow manufacturers, data centers and other energy-intensive industries to build new electricity systems separate from the consumer electrical grid.
More widely, Senate and House lawmakers have launched inquiries into the nonprofits in the Singham network, while questioning whether the groups should be required to register as «foreign agents» under the Foreign Agents Registration Act, called FARA, which demands that entities or individuals working for the interests of foreign interests register with the U.S. Justice Department as foreign lobbyists.
«Alarming reports indicate that a network of foreign actors, led by the Chinese Communist Party (CCP), is attempting to manipulate U.S. policy and public opinion on data centers,» Cotton wrote in the letter.
AGITATORS UNITED BY CHINESE MONEY, HATE FOR AMERICA TARGET DATA CENTERS, EXPERTS WARN
Climate activists, anti-Israel protesters and other activist movements with very different agendas have become strange bedfellows united by a shared disdain for America and funding from China, according to experts who warn the trend is weakening the United States amid a rapidly accelerating AI race. They are seen as part of a «red-green-green alliance,» an ideological overlap between three elements: communist movements, characterized by the color red; Islamist activism, described as green; and environmental protest groups, symbolized as green.
Cotton argued that America’s position in artificial intelligence will have sweeping implications for the country’s economic strength, military capabilities, diplomatic influence and national security. He warned that foreign adversaries shouldn’t be allowed to exploit public concerns over energy use, utility costs and water consumption to slow U.S. technological development.
The Bitcoin Policy Institute report, «Foreign Influence in the Campaign Against American AI,» alleges that three separate streams of influence — Chinese state media, the Singham network and foreign-funded advocacy organizations — have increasingly aligned around efforts to block or delay new AI-related infrastructure in the United States.
LAWMAKERS RAISE ALARM OVER NEVILLE ROY SINGHAM’S $278M NETWORK SPREADING CCP PROPAGANDA IN THE U.S.
After their wedding in early 2017, Singham and Evans have transformed far-left protests in the United States, creating a machine that sounds the alarm for new protests from clear command-and-control centers within the Singham network, churns out pre-printed protest signs, shares common messaging and galvanizes around common themes that support China and condemn «AmeriKKKa,» as an «imperiaist nation,» borrowing on Russian and Chinese propaganda.
According to the report by the Bitcoin Policy Institute, the Singham network «has spent nearly five years producing parallel domestic content opposing U.S. AI infrastructure, AI labs, and AI export controls.»
The report argues that the campaign against American AI infrastructure creates a strategic advantage for Beijing at a time when China is aggressively investing in its own AI capabilities.
«While Beijing’s state media warns American audiences that data centers are environmentally and economically dangerous, the Chinese state subsidizes up to half of the energy costs of its own AI data center operators,» the report states.
KEVIN O’LEARY WARNS CHINA ‘KICKING OUR HEINIES’ IN AI RACE AS REGULATORY ROADBLOCKS STALL US
The issue has become increasingly prominent as policymakers, investors and technology leaders warn that the U.S. risks falling behind China if it fails to rapidly expand the computing infrastructure needed to power next-generation AI systems.
One of the most vocal advocates for expanded AI infrastructure has been billionaire investor Kevin O’Leary, who has argued that data centers, power generation and advanced computing capacity are now strategic assets in the global competition for artificial intelligence leadership.
The broader concern raised by Cotton, O’Leary, the Bitcoin Policy Institute and others is that pro-China campaigns opposing U.S. AI infrastructure are advancing narratives that ultimately benefit Beijing as the U.S. States and China battle for technological and economic supremacy.
BERNIE SANDERS’ PLANS TO SCHMOOZE WITH TOP BEIJING AI EXPERTS IGNITES BACKLASH: ‘HOLY SH–‘
Earlier this year, Sen. Bernie Sanders (I-VT) and Rep. Alexandrio Ocasio-Cortez (D-NY), both leaders in the Democratic Socialists of America, organized an event on the «existential threat of AI.» The event featured speakers closely affiliated with the Chinese Communist Party, including Zeng Yi of the Beijing Institute of AI Safety and Governance and Xue Lan, a counselor to China’s State Council and chairman of China’s national AI governance committee. Sanders, Ocasio-Cortez, Yi and Lan didn’t respond to requests for comment.
Cotton noted in his letter that Lan is affiliated with Tsinghua University, an institution frequently scrutinized by U.S. officials because of its role in China’s military-civil fusion strategy.
As reported, last fall, during a conference of the «Global South Academic Forum,» which Fox News Digital first reported, Singham publicly praised the Chinese Communist Party and Chinese President Xi Jinping’s global campaign for a «new world order.»
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artificial intelligence, national security, congress, investigations, xi jinping
INTERNACIONAL
Irán respondió a los ataques de Estados Unidos con bombardeos a países de la región y la tregua quedó en jaque
La tregua en la guerra en Medio Oriente quedó en su punto más endeble, luego de un nuevo recrudecimiento en los bombardeos entre Estados Unidos e Irán. A tal punto que Teherán afirmó este miércoles que va a revisar la continuación de las negociaciones con el Gobierno de Trump; y el portavoz del Ministerio de Exteriores iraní, Ismail Bagaei, aseguró que el proceso diplomático necesita un clima de estabilidad.
El martes, las fuerzas norteamericanas atacaron varios puntos del sur iraní como represalia por el supuesto derribo de un helicóptero, y bombardearon sistemas de defensa aérea, estaciones de control terrestre y radares de vigilancia ubicados cerca del estrecho de Ormuz, utilizando municiones de precisión lanzadas desde cazas de la Fuerza Aérea y de la Armada.
Los intercambios de fuego se produjeron un día después de que un helicóptero de ataque AH-64 Apache del Ejército de Estados Unidos se estrellara cerca del estrecho de Ormuz después de chocar con un dron iraní, según un funcionario estadounidense, que habló bajo condición de anonimato para comentar una investigación en curso. No estaba claro si la colisión fue intencional.
“La operación fue una respuesta proporcional a los recientes ataques contra fuerzas de Estados Unidos y buques comerciales internacionales que transitan por aguas regionales”, dijo el Comando Central.
Por su parte, autoridades iraníes afirmaron que en los ataques estadounidenses fueron destruidas varias torres de comunicaciones y dos desalinizadoras en la zona de Sirik, lo que ha dejado sin agua potable a 20.000 personas.
La Guardia Revolucionaria anunció que respondió a esos ataques con bombardeos contra 21 objetivos militares estadounidenses en todo Oriente Medio, un extremo negado por Washington. Entre los objetivos se encontrarían bases estadounidenses en Jordania, Kuwait y Baréin.
Jordania dijo el miércoles que derribó cinco misiles entrantes, que Irán dijo que tenían como objetivo la Base Aérea Muwaffaq Salti. Esa base aérea ha albergado aviones de combate F-35 estadounidenses y otras aeronaves. Baréin y Kuwait dijeron que interceptaron fuego entrante, sin dar más detalles.
Se trata del que es quizás el mayor intercambio de ataques entre Irán y Estados Unidos desde el inicio del alto el fuego el 8 de abril, y se produce en medio de las negociaciones para alcanzar algún tipo de acuerdo para reabrir el estrecho de Ormuz.
Es la segunda ocasión en la semana que los ataques de ida y vuelta pusieron a prueba el alto el fuego después de que Irán e Israel se atacaran mutuamente el lunes, y volvió a plantear la pregunta de cuánta presión puede soportar el acuerdo antes de que se quiebre.
Aunque el presidente de Estados Unidos, Donald Trump, ha insistido en que las negociaciones con Irán para poner fin a la guerra están avanzando, ha alternado repetidamente entre expresar ese optimismo y advertir que estaba listo para volver a una guerra total.
Irán, por su parte, ha demostrado resiliencia pese a haber enfrentado semanas de intensos bombardeos, apostando a que su capacidad de cerrar de manera efectiva el estrecho de Ormuz, un paso crucial para el petróleo y el gas natural del mundo, le da una fuerte carta de negociación.
Ambos países parecen estar buscando una manera de poner fin al conflicto, si pueden lograr venderlo como una victoria en casa. Pero el primer ministro israelí, Benjamin Netanyahu, parece decidido a perseguir objetivos mucho más difíciles: el colapso del gobierno teocrático de Irán, la eliminación de su programa nuclear y la destrucción del grupo político y militar Hezbollah, aliado de Irán, en Líbano.
Los ataques de EE.UU. e Irán sacuden Oriente Medio desde que Trump y Netanyahu comenzaron la guerra con ataques contra Irán el 28 de febrero.
Los mediadores, encabezados predominantemente por Pakistán, llevan semanas tratando de cerrar un acuerdo. Si bien Trump, receloso de los altos precios del combustible y de las próximas elecciones al Congreso en noviembre, parece buscar una victoria rápida, también está haciendo exigencias que serán difíciles de aceptar para Irán.
Mientras tanto, Irán ha seguido insistiendo en que cualquier acuerdo para poner fin a la guerra también debe poner fin a los combates entre su aliado Hezbollah e Israel. En cambio, Israel ha intensificado su campaña militar contra el grupo político y militar.
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EXCLUSIVE: Serbian President Vučić says support for US ‘surged’ under Trump, invites him to visit Belgrade
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Serbian President Aleksandar Vučić says relations between Serbia and the United States have undergone a dramatic transformation under President Donald Trump, a shift he says has changed public perceptions in a country where memories of the 1999 NATO bombing campaign remain deeply rooted.
In an exclusive interview with Fox News Digital, Vučić praised Trump’s approach to the Balkans, arguing that the administration’s focus on economic cooperation rather than political pressure resonated with many Serbs. «President Trump and his team so far were working very diligently and dedicatedly on the Western Balkans,» Vučić said, adding that many Serbs view his administration very differently from previous U.S. governments.
«If you ask people in Serbia just to make a comparison between Clinton and Trump’s administration, or Democrats to Republicans, you wouldn’t believe it,» Vučić said. «It would be 90 to 10 or 95 to 5.»
FORMER TRUMP ADVISORS WAGE BALKAN CAMPAIGN AS MAGA MOVES INTO EUROPE
Serbia’s President Aleksandar Vučić addresses the 78th session of the United Nations General Assembly on Sept. 21, 2023. (Richard Drew/AP Photo)
The comparison is particularly striking in Serbia, where many still associate the United States with NATO’s 1999 bombing campaign during the Kosovo conflict, launched to stop Serbian forces’ crackdown on ethnic Albanians in Kosovo and which remains one of the most consequential events in modern Serbian history.
Vučić said he recently extended an invitation to Trump to visit Serbia and predicted the American president would receive an enthusiastic welcome.
«I hope that we’ll be able to host him,» Vučić said. «More people will be ready to greet him and wait for him than he might even expect…I dare to say even more than hundreds of thousands of people.»
The Serbian president said the improving relationship between Washington and Belgrade is increasingly centered on economics, investment and technological cooperation, and mutual conservative values.
According to Vučić, Serbia and the United States are preparing to launch a strategic dialogue that will focus on energy, infrastructure, artificial intelligence, defense cooperation and investment opportunities. Among the projects under discussion are energy infrastructure, liquefied natural gas cooperation, data centers and advanced computing technologies.
EUROPEAN LEADER PRAISES TRUMP’S ‘PEACE THROUGH STRENGTH’ FOR KEEPING COUNTRY SAFE FROM CONFLICT
U.S. President Donald Trump speaks during a meeting with Serbia’s President Aleksandar Vučić and Kosovo’s Prime Minister Avdullah Hoti at the White House in Washington, U.S., Sep. 4, 2020. (Leah Millis/Reuters)
The growing relationship comes as Serbia seeks to position itself as a regional economic hub while continuing its long-standing ambition of joining the European Union.
Vučić pointed to preparations for Expo 2027 in Belgrade with nearly 150 participating countries, as evidence of Serbia’s growing international profile and economic ambitions.
Vučić, who has served as Serbia’s dominant political figure since becoming prime minister in 2014 and president in 2017, pointed to the country’s economic growth as evidence of its transformation. «Our GDP was 32 billion (euros) when I became the prime minister,» Vučić said. «This year it’s going to be over 100 billion euros., which is $120 billion.»
President Donald Trump and the President of Serbia Aleksandar Vučić ( Credit: Al Drago for The Washington Post via Getty Images ; Mehmet Ali Ozcan/Anadolu via Getty Images)
Vučić’s relationship with Trump dates back to the president’s first term, when the White House brokered a series of economic normalization agreements between Serbia and Kosovo. Rather than focusing first on the politically explosive question of Kosovo’s status, the Trump administration emphasized infrastructure projects, transportation links and investment aimed at improving ties between the two sides.
In September 2020, Vučić and then-Kosovo Prime Minister Avdullah Hoti signed U.S.-brokered economic agreements at the White House that included commitments to expand rail and highway connections and promote investment. Trump described the deal as a breakthrough achieved by focusing on «job creation and economic growth» rather than longstanding political disputes.
PRESIDENT ALEKSANDAR VUČIĆ: EUROPE VILIFIES TRUMP, BUT WE IN SERBIA SEE A FRIEND
Serbian poster supporting Donald Trump near a portrait of the Serbian former Prime Minister and now president, Aleksandar Vučić in Mitrovica, Kosovo. (Getty Images)
Asked whether he would consider recognizing Kosovo, which declared independence from Serbia in 2008 and has been recognized by the United States under President George W. Bush and most European countries, if doing so unlocked Serbia’s economic future and accelerated its path toward membership in the European Union, Vučić pushed back on the premise, arguing that economic cooperation and improved relations should come before discussions about political status.
«I’m not saying that I’m ready to violate my constitution… I have always been open to talks or compromising solutions, I have always been open to developing great economic ties and no doubt much better political ties. But I was not speaking about recognition of someone’s independence,» he said.
While Serbia continues to pursue membership in the European Union, the country has also maintained ties with Russia and China, a balancing act that has drawn scrutiny amid Russia’s war in Ukraine and growing geopolitical tensions worldwide.
Secretary of State Marco Rubio shakes hands with Serbian President Aleksandar Vučić as they meet on the sidelines of the United Nations General Assembly in New York City, U.S., September 23, 2025. (Charly Triballeau/Pool via Reuters)
Asked whether Serbia could continue navigating between East and West in an increasingly divided world or would eventually need to choose a side, Vučić rejected the notion that countries must choose between competing geopolitical camps. Instead, he pointed to both his own visit to China and Trump’s engagement with Beijing as examples of what he described as pragmatic diplomacy focused on national interests.
«President Trump didn’t go there because of his vanity,» Vučić said of Trump’s visit to China. «He brought with him all the leading people of the United States of America for making better businesses, for earning more money for their companies.»
KOSOVO ACCUSES SERBIA OF ‘TERRORIST ATTACK’ RESEMBLING RUSSIAN ACTIONS IN UKRAINE
BELGRADE, SERBIA – FEBRUARY 03: Aleksandar Vučić (L) President of Serbia talks with tennis player Novak Djokovic (R) of Serbia after their meeting on February 3, 2022 in Belgrade, Serbia. (Photo by Srdjan Stevanovic/Getty Images)
Vučić said he adopted a similar approach during his own visit, arguing that leaders should prioritize economic opportunities for their citizens rather than ideological alignments. «I’m coming from a small country. I was asking for more investments and was fighting for the interests of my people,» he said.
The Serbian president said the same pragmatic approach should guide efforts to resolve ongoing conflicts in both Ukraine and the Middle East.
«It’s always better to have thousands of days of negotiations than one day of war,» he said.
Asked about tensions involving Iran and the wider conflict in the Middle East, Vučić reiterated Serbia’s support for Israel, a position that increasingly distinguishes Belgrade from some European governments.
«I am the president of the country that is one of the very rare countries in Europe that is not hesitating to cooperate and collaborate with Israel,» he said. «And it is proud to say this publicly and openly.»
Vučić warned about what he described as rising antisemitism around the world.
«From time to time, I’m very much afraid to see a lot of antisemitic slogans and antisemitic banners,» he said.
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Serbian President Aleksandar Vučić (R) and Israeli Prime Minister Benjamin Netanyahu (L) meet at the Presidential residence ahead of the World Holocaust Forum on January 22, 2020 in Jerusalem. (PhKobi Gideon / GPO / Handout/Anadolu Agency via Getty Images)
«The Serbian president said Serbia has resisted those trends and pledged that it would continue to do so under his leadership.»
«It does not happen in Serbia, and it won’t happen as long as I’m the president.»
the balkans, donald trump, russia, ukraine
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