Proposed OPT Fee to Reshape International Student Employment
The Trump administration has put forth a new proposal that could fundamentally alter the path to employment in the United States for international students. A steep $70,000 fee for the Optional Practical Training (OPT) program has been suggested, a move that would significantly increase the cost of remaining in the US post-graduation. This change is expected to have a particularly profound impact on students from countries like India and China, who form a large contingent of international students in US higher education and are crucial contributors to the American technology sector.
Optional Practical Training (OPT) allows eligible F-1 international students to gain practical work experience directly related to their field of study. It serves as a vital bridge for foreign graduates looking to start careers in key sectors such as technology, engineering, and finance, and often precedes applications for longer-term employment visas.
Understanding the New Fee Structure
Under the proposed rule, released by the Department of Homeland Security (DHS), universities and other institutions certified under the Student and Exchange Visitor Program (SEVP) would be required to pay $70,000 for an initial OPT recommendation for an F-1 international student. An additional $30,000 fee would apply to subsequent OPT recommendations, including extensions for Science, Technology, Engineering, and Mathematics (STEM) fields.
While the fee is technically charged to the educational institution, immigration law experts, such as Fragomen, suggest that universities would likely pass this cost on to students or their future employers. This contrasts sharply with the current USCIS employment authorization filing fee, which stands at $470 for online applications or $520 for paper filings. The proposed institutional fee would be more than 100 times the current standard filing cost.
Why the Administration is Proposing This Change
The Department of Homeland Security states its objectives for the new fee are to combat fraud, strengthen the integrity of the immigration system, and protect US workers. The department contends that the OPT program has grown substantially and has, in its view, become a conduit for what it describes as “cheap foreign labor.”
DHS argues that the substantial fee would encourage universities to conduct more rigorous reviews before recommending students for OPT. The department also highlighted the rapid expansion of STEM OPT, noting that in 2024, 165,524 F-1 students participated in STEM OPT, a figure nearly double the annual H-1B visa cap.
Potential Impact on International Students and Universities
A central question remains whether universities will be willing or able to absorb a $70,000 cost per student. DHS itself acknowledges that the proposed fee could lead to a substantial reduction in program participation. The agency’s regulatory analysis indicates it cannot confidently predict the exact decline in OPT engagement, considering scenarios where institutions might be less inclined to pay for students eligible only for the standard 12-month non-STEM OPT, but more willing for those qualifying for the two-year STEM extension.
This dynamic could make STEM graduates comparatively more attractive to institutions than students whose degrees only qualify them for the shorter OPT period. DHS estimates that these new fees could generate between $8.4 billion and $16.5 billion annually, with a central estimate around $12.4 billion, depending on participation levels.
Significant Implications for Indian Students
The proposed changes hold particular significance for Indian students, alongside those from China. These two nations collectively account for a large proportion of international students in US higher education and are primary sources of skilled professionals entering the American technology sector. For Indian students, OPT is especially critical as it provides a crucial period of US work experience after completing their degrees, often serving as a stepping stone toward longer-term employment options.
The financial implications of the proposed rule could force a re-evaluation for universities, employers, and students alike. If institutions pass the cost directly, a $70,000 charge could render some OPT opportunities financially unfeasible for international graduates. Conversely, if universities absorb the cost, they may become significantly more selective about which students they recommend for the program, potentially tightening access for many aspiring professionals.
Next Steps for the Proposed Rule
The proposal has not yet taken effect. The notice is scheduled for publication in the Federal Register on October 8, 2026. Following this, the public will have 30 days to submit comments on the rule. The Department of Homeland Security will then be required to review this feedback before issuing a final rule, which would precede the implementation of any new fees.