WASHINGTON — In a major policy shift, the U.S. Department of Homeland Security (DHS) announced a proposed rule on the 7th (local time) that would impose hefty new fees totaling nearly $100,000 on international students participating in the Optional Practical Training (OPT) program.

According to the proposal, F-1 visa holders applying for initial OPT will face a $70,000 fee, while subsequent extensions will cost an additional $30,000. Under the regulation, these fees must be paid by the sponsoring academic institution; if left unpaid, the U.S. Citizenship and Immigration Services (USCIS) will deny the student’s employment authorization.

Program Overview and Rationale

OPT allows international students who have completed undergraduate or graduate degrees at U.S. universities to work in their field of study for up to one year without a separate work visa. Students in Science, Technology, Engineering, and Math (STEM) fields are currently eligible for extensions of up to three years.

DHS stated that the measure is designed to curb the influx of low-wage labor and protect job opportunities for U.S. citizens. A DHS spokesperson emphasized that the OPT program should not become a backdoor into the U.S. labor market, a subsidy for cheap labor, or a reward for program abusers.

The proposal stems from investigations by Immigration and Customs Enforcement (ICE) through the Student and Exchange Visitor Program (SEVP), which uncovered various cases of fraud and abuse within the system. SEVP reported cracking down on fraudulent schemes, including "pay-to-stay" arrangements, lax workplace oversight, and complicit designated school officials (DSOs), employers, and students amid growing enrollment in the program.

DHS hopes the new rule will compel universities to exercise stricter oversight and screening when recommending F-1 students for OPT, thereby preventing fraud and reinforcing program integrity.

Next Steps and Industry Reaction

The proposed rule is open to a 60-day public comment period before a final decision is made and implemented. However, the Associated Press (AP) noted that potential legal challenges from universities or business associations could delay its enforcement.

The AP reported that the policy is expected to significantly impact U.S. colleges—which heavily rely on international students for tuition revenue—as well as tech companies and other industries that frequently hire international graduates for skilled positions.

Doug Rand, a former USCIS senior adviser under the Biden administration, criticized the plan to the AP, suggesting that the exorbitant fees could be invalidated in court and arguing that international students should not face prohibitive financial barriers to working in the United States.

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