The U.S. Department of Homeland Security proposed on Wednesday, October 7, 2026, to charge $70,000 for each foreign student's first round of Optional Practical Training (OPT) and $30,000 for every subsequent one — a massive jump from the roughly $500 students pay today. Under the rule, SEVP-certified schools would have to pay the fee before recommending a student for work authorization, and U.S. Citizenship and Immigration Services would not approve any OPT application without it. DHS says the fees are meant to combat fraud and protect American workers from what it calls a "pipeline for cheap foreign labor." The proposal is open for public comment from October 8 through November 9.
What the DHS $70,000 OPT fee proposal would change
OPT is the temporary work authorization that lets F-1 students take jobs tied to their field of study, during their degree or for a limited time after it. Students can get up to 12 months per education level, with a 24-month extension for STEM graduates, according to the DHS announcement.
Today, enrolling costs roughly $500, Reuters reported. Under the new plan, the school pays $70,000 for an initial recommendation and $30,000 for each later one — before a school official files it in the SEVIS system, and USCIS would refuse authorization without payment. The fee isn't tied to any employer, and the money goes to the U.S. Treasury. A student using initial OPT plus a STEM extension would face a combined $100,000 burden, as Bloomberg Law calculated.
Who pays the DHS OPT fee — universities, students or employers?
Legally, the schools. The proposal puts the payment duty on SEVP-certified institutions at the moment they recommend a student. But the rule also says schools may pass the cost to students or employers, the South China Morning Post reported — and that changes everything. American universities recruit heavily overseas, and foreign students are a major tuition source, while tech companies hire many international graduates for technical roles, the Associated Press noted. Schools may absorb the fee, add it to student bills, ask employers to cover it — or quietly stop recommending students for OPT at all.
Why DHS says the fee is needed
The department's argument is blunt. "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," a DHS spokesperson said. "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."
DHS said its Student and Exchange Visitor Program has found schools, school officials, employers and students running schemes to exploit the rules, including problematic worksites and "pay-to-stay" visa arrangements. Homeland Security Secretary Markwayne Mullin called the program "flooded with participants seeking to exploit the program for improper purposes," and warned that "without the fees proposed in this rule, it cannot operate OPT consistent with its focus on preventing fraud and may shut down the program entirely," Newsmax reported. The cases cited include a Chinese businesswoman who sold bogus employment verification documents for OPT — one person she helped was later convicted of acting as an agent of the Chinese government — plus ICE visits that turned up shell companies and evidence of international financial fraud. Steep fees, the department argues, will force schools to be far more selective about whom they recommend.
Why it matters: the STEM pipeline at stake
OPT is huge, and it's concentrated in the fields American employers say they can't fill. Roughly 418,000 students — more than a quarter of all F-1 students — held work authorization through the program in calendar year 2024, according to Bloomberg Law. More than 165,000 foreign students worked in science, technology and engineering jobs under OPT that year — nearly double the number admitted under the H-1B guest-worker visa, the Washington Times reported. Nearly 62,000 Chinese students took part in OPT in the 2024–2025 academic year, per the Institute of International Education's Open Doors report, cited by the South China Morning Post. For many, OPT is also the bridge to an H-1B visa and eventually a green card — a path tech companies depend on, Reuters noted.
That's why educators are alarmed. "International students don't take opportunities from Americans, they create them," said Fanta Aw, chief executive of NAFSA, the association of international educators. She added that OPT lets students gain practical experience while filling shortages in high-demand STEM fields — and that "driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development and global leadership." NAFSA said it will file detailed comments opposing the rule.
Backlash and the expected court fight
Critics don't just oppose the fee — they doubt it will survive. "This proposed rule isn't going to fare well in the courts, just as the 100k H-1B fee and other restrictionist policies have been struck down," Doug Rand, director of the Talent Mobility Fund, wrote on LinkedIn, Reuters reported. Bloomberg Law called legal challenges "virtually certain" once the rule is finalized — and the track record backs that up. In August, DHS proposed a $103,265 fee for new H-1B workers, weeks after a federal court blocked a separate H-1B charge. USCIS Director Joseph Edlow told Senate lawmakers at his confirmation hearing last year that he wanted to eliminate all post-graduation OPT, while a 2023 federal court ruling rejected a lawsuit that sought to kill the program outright after business groups defended it as a critical STEM pipeline.
There's irony here, too. During the 2024 campaign, President Donald Trump vowed to make it easier for foreign students to stay, even suggesting automatic green cards after graduation, according to Reuters. Two years later, his administration is pricing the work-training program beyond the reach of most students and schools. Whether the courts let it stand will decide which vision wins.
What happens next
For now, nothing is final. DHS will accept public comments from October 8 through November 9, then review them and may revise the rule before publishing a final version. If it goes ahead, the rule would take effect 60 days after publication — existing OPT approvals and recommendations issued before that date would not trigger the fee, though later requests could.
What follows the comment window is anyone's guess. Higher-education groups and business associations are expected to file detailed objections, and lawsuits are widely predicted, given that a federal court blocked a similar immigration fee effort this year. But if the fee survives, the era of a $500 ticket to work in America after graduation is over — and schools will have to decide who really pays.
Key Takeaways
- DHS proposed on October 7, 2026, to charge $70,000 for initial OPT and $30,000 for each subsequent authorization, up from roughly $500 today.
- SEVP-certified schools must pay before recommending students for OPT; USCIS will deny work authorization without payment — but schools may pass the cost to students or employers.
- The department cites fraud, "pay-to-stay" schemes and shell-company worksites, calling OPT a "pipeline for cheap foreign labor."
- About 418,000 students held OPT work authorization in 2024, including nearly 62,000 Chinese students — a pipeline tech companies rely on for STEM talent.
- NAFSA and education groups oppose the rule; legal challenges are considered virtually certain, echoing the court battles over H-1B fees.
- Public comments run October 8 to November 9; the rule would take effect 60 days after any final rule is published.
Frequently Asked Questions
What will the $70,000 OPT fee mean for international students?
If finalized, it would make post-graduation work dramatically more expensive. Students themselves don't pay the fee — schools do — but universities could pass the $70,000 charge (plus $30,000 for renewals) on to students or employers, or simply stop recommending students for OPT, shrinking the program sharply.
Who pays the DHS OPT fee — universities, students or employers?
The legal obligation falls on SEVP-certified schools, which must pay before a designated school official recommends a student for OPT in SEVIS. However, the proposed rule explicitly allows schools to pass the cost to students or employers. In practice, the burden could land on any of the three.
When does the public comment period for the OPT fee end?
DHS will accept public comments from October 8 through November 9, 2026. After the window closes, the department will review all properly submitted comments and may revise the rule. Only then can a final rule be published, with effectiveness 60 days after publication.
Can universities pass the $70,000 OPT fee to students?
Yes. The proposed rule states that schools may pass the cost to students or employers, according to DHS. Universities that recruit international students heavily for tuition revenue face a choice: absorb the fee, add it to student bills, ask hiring employers to cover it, or recommend fewer students for OPT.
Will the DHS OPT fee be challenged in court?
Almost certainly. Reuters reported the rule is likely to face swift legal challenges, and Bloomberg Law called challenges virtually certain. A federal court already blocked a separate H-1B charge this year, and a 2023 ruling rejected a lawsuit seeking to end OPT — precedents both sides will cite.
How does the OPT fee compare to the H-1B fee proposals?
In August, DHS proposed a $103,265 fee for new H-1B workers, weeks after a court blocked an earlier H-1B charge on hires from outside the U.S. The key difference: H-1B fees fall on employers, while the OPT fee falls on schools — with permission to pass it to students or employers.
Sources
- Reuters: Trump administration plans to charge international students $70,000 for work authorization
- DHS: DHS Proposes Fees for Foreign Student Work Program to Protect American Jobs
- South China Morning Post: US proposes US$70,000 fee for foreign students to work after graduation
- Bloomberg Law: DHS Proposes New $100,000 Fee on Foreign Grad Work Program
- Newsmax: DHS Fee Targets 'Pipeline for Cheap Foreign Labor'
- Gulf News (AP): Trump Administration Proposes $70,000 Fee for International Students in OPT Program
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