NRI PULSE STAFF REPORT
WASHINGTON, D.C., October 7, 2026 — The Trump administration is proposing a dramatic new fee on a program that allows international students to work in the United States, potentially putting the cost of post-graduation employment out of reach for many foreign students.
Under a proposed rule released Wednesday by the Department of Homeland Security, colleges and universities would be charged $70,000 for each F-1 international student they recommend for Optional Practical Training, or OPT, and $30,000 for any subsequent OPT recommendation, including a STEM OPT extension.
That means a student who receives an initial OPT recommendation and later applies for a STEM extension could potentially trigger $100,000 in fees.
The proposal does not technically require the student to pay the government directly. The fee would be imposed on the Student and Exchange Visitor Program-certified school making the OPT recommendation. However, DHS explicitly says schools could offset the cost by passing the financial obligation on to F-1 students, other students or employers.
Schools would also be allowed to decide not to recommend a particular student for OPT rather than pay the fee.
The proposal, scheduled for publication in the Federal Register on Oct. 8, is not yet in effect and will be subject to a 30-day public comment period. If DHS ultimately adopts the rule, it proposes an effective date 60 days after publication of the final rule.
OPT is one of the most important pathways into the U.S. workforce for international students. It allows F-1 students to obtain temporary employment directly related to their field of study. Eligible students generally can receive up to 12 months of OPT, while graduates in qualifying science, technology, engineering and mathematics fields can seek a 24-month STEM extension.
For many international graduates, particularly those seeking careers in technology and other STEM fields, OPT also serves as a bridge between graduation and longer-term employment status such as an H-1B visa.
The proposed $70,000 charge would apply the first time a school recommends a student for any type of OPT, whether before or after graduation. Any later OPT recommendation would carry the $30,000 fee. Changing employers by itself would not trigger another fee.
The proposal could have significant implications for students from India, one of the largest sources of international students and skilled foreign workers in the United States. Reuters noted that international graduates, particularly from India and China, have long used practical training and subsequent H-1B employment to move from American universities into the U.S. workforce.
DHS cites fraud and impact on U.S. workers
DHS says the proposed fees are intended to combat fraud and abuse in the OPT program, strengthen immigration enforcement and protect American workers.
The department cited investigations involving shell companies, nonexistent workplaces and so-called “pay-to-stay” arrangements in which students appeared to have employment on paper but were not actually working at legitimate job sites. DHS said a recent investigation identified more than 10,000 F-1 students participating in OPT who were working for employers the agency considered highly suspect.
The proposed rule also cites cases involving residential addresses being listed as workplaces, companies sharing addresses and employers claiming large numbers of foreign student workers who could not be found at the listed worksite.
DHS said 194,554 F-1 students received employment authorization for pre- or post-completion OPT and reported working for an employer in 2024, up from 160,627 in 2023.
The administration also argues that OPT can disadvantage American workers. DHS says some F-1 students are exempt from Social Security and Medicare payroll taxes under certain circumstances, potentially making them less expensive for employers than comparable U.S. workers.
Education advocates dispute the administration’s broader characterization of OPT and argue that international graduates contribute needed skills to the U.S. workforce. Fanta Aw, CEO of NAFSA: Association of International Educators, told The Associated Press that OPT enables students to gain hands-on experience and helps fill labor shortages in high-demand STEM fields.
Universities could pass the cost on
One of the most consequential provisions is DHS’s acknowledgement of what universities could do with the new expense.
While the regulation places the legal obligation to pay on the educational institution, DHS says schools could pass the financial burden to international students, spread it among their broader student population, or seek payment from employers.
The rule would also give universities a financial reason to become more selective about whom they recommend for OPT. DHS says a school could simply decline to make an OPT recommendation for a student it does not consider a strong candidate rather than pay the fee.
DHS argues this would encourage institutions to scrutinize OPT participation more closely. Critics, however, warn that fees of this magnitude could make practical training unaffordable and reduce the attractiveness of American universities to international students.
The proposal would apply prospectively. Students already participating in approved OPT, already approved before the rule’s effective date, or who received their school’s OPT recommendation before that date would not trigger the new initial fee. A later OPT or STEM OPT request made after the rule takes effect, however, could be subject to the new fee structure.
The proposal comes as the Trump administration pursues broader changes to employment-based and student immigration programs. It is expected to draw intense scrutiny from universities, employers and immigration advocates before any final rule is issued.
