The United States (U.S) Department of Homeland Security (DHS) announced a Notice of Proposed Rulemaking that would impose a $70k fee on participation in Optional Practical Training (OPT), a program allowing F-1 nonimmigrant (foreign) students to gain temporary work experience related to their field of study.
Under the proposal, Student and Exchange Visitor Program (SEVP)-certified schools would pay $70k for initial OPT recommendation of foreign students and $30k for any subsequent OPT recommendation (including STEM extensions).
The fees represent an increase from the current roughly $500 application-related costs typically paid by students.
Collected fees would be deposited in the U.S Treasury. The proposal is not yet in effect and requires public comment, review, and finalization before implementation.
In a statement by DHS, the agency described the fee as a response to fraud and abuse of the visa programme, which it called a “pipeline for cheap foreign labour.”
It reads: “The public has 60 days to comment on the proposal before DHS can finalize it and put it into effect.
“The proposal also could face legal challenges from higher education groups or business associations that could delay it.
“Under the proposed rule, schools would pay $70,000 for each student’s initial application for the programme, while a $30,000 fee would apply to each renewal.”
Background on Optional Practical Training
Pan-Atlantic Kompass reports that OPT is a longstanding feature of the F-1 student visa system. Eligible students may engage in pre-completion OPT (while still enrolled, often limited hours) or post-completion OPT after graduating.
Standard post-completion OPT lasts up to 12 months at each educational level. Graduates with degrees in science, technology, engineering, or mathematics (STEM) fields may qualify for an additional 24-month extension, allowing up to 36 months total in some cases.
The work must be directly related to the student’s major. Designated school officials (DSOs) recommend students via the Student and Exchange Visitor Information System (SEVIS), after which students apply to U.S Citizenship and Immigration Services (USCIS) for an Employment Authorization Document (EAD).
Participation has been significant. Recent figures indicate hundreds of thousands of international students have used OPT annually (estimates ranging from roughly 294,000 to over 400,000 in recent years). Chinese students alone accounted for nearly 62,000 participants in the 2024–2025 academic year, according to Institute of International Education data. Many use OPT as a bridge to longer-term status such as H-1B visas.
Details of the Proposed Rule
– Who pays: SEVP-certified schools must pay the fee before a DSO recommends a student for any type of OPT in SEVIS. USCIS would not grant employment authorization without confirmation of payment.
– Amount structure: $70,000 for the first OPT recommendation after the rule takes effect (regardless of whether it is pre- or post-completion); $30,000 for each subsequent recommendation. A student pursuing both initial OPT and a STEM extension could effectively trigger $100,000 in fees.
– Scope: Applies to recommendations for any OPT; the fee is not tied to a specific employer.
– Recoupment: Some analyses note that universities would be permitted to recover the costs from the student or prospective employer, though the official DHS announcement focuses on schools as the payers.
– Purpose of funds: Support program oversight and ensure compliance with the intended temporary training purpose of OPT.
DHS linked the proposal to identified fraud and abuse, including problematic worksites and “pay-to-stay” schemes, as participation has grown. The agency stated the fees would encourage schools to exercise greater oversight and selectivity.
Official Explanation
DHS framed the measure as necessary “to combat fraud and abuse, strengthen the integrity of the immigration system, and protect U.S workers.”
A department spokesperson stated: “Optional Practical Training was never meant to be a back door into the American workforce, a subsidy for cheap labor, or a prize for those who game the system. DHS is upskilling OPT to require foreign students to justify their worth to employers. American workers should not have to compete against a program that has been turned into a pipeline for cheap foreign labor.”
The proposal’s $70k fee on foreign students aligns with broader Trump administration efforts to tighten employment-based immigration pathways, including prior attempts at high fees on H-1B visas.
Potential Impacts
Universities that enroll large numbers of international students, many of whom pay full tuition and form a key revenue stream, could face multimillion-dollar costs if they continue recommending OPT at current volumes.
A school recommending 100 initial OPT participants would face $7 million in fees alone under the proposal.
Tech, engineering, finance, and other industries that recruit international graduates via OPT for entry-level or specialized roles may see reduced talent pipelines.
Critics, including student advocacy groups such as NAFSA, argue that international students and OPT participants often create jobs and contribute to innovation, and that the fees could deter top global talent from studying in the United States, potentially shifting them to competitor countries. Supporters view the change as leveling the playing field for American workers and curbing perceived abuse of a temporary training program.
Next Steps in the Rulemaking Process
Public comments on the proposed rule are accepted from October 8 through November 9, 2026 (approximately 30 days after publication in the Federal Register).
A separate 60-day period applies to the Paperwork Reduction Act information collection aspects. Comments can be submitted via Regulations.gov under the relevant docket.
After the comment period, DHS will review submissions and may revise the rule before issuing a final version. One report indicated a potential 60-day delayed effective date after finalization to allow preparation time. Legal challenges from universities, industry groups, or immigrant advocates are widely anticipated if the rule is finalized in its current form.
The proposal remains subject to the full administrative rulemaking process and does not immediately alter current OPT eligibility or procedures. Students, schools, and employers should monitor the Federal Register and official DHS/ICE SEVP communications for updates.
