Policy primer: DHS proposes implementing extremely high fees to participate in OPT
Schools administering OPT and STEM OPT may soon be responsible for paying tens of thousands of dollars in fees for each student interested in participating in the program. The Trump administration argues that the fees would reduce fraud and abuse in international student employment.
/ Article OCT 09, 2026 Schools administering OPT and STEM OPT may soon be responsible for paying tens of thousands of dollars in fees for each student interested in participating in the program. The Trump administration argues that the fees would reduce fraud and abuse in international student employment.
Associate Director of Public Policy Research and Analysis , AIP Research A view of a small college class from the front of the room. Photo by Vitaly Gariev on Unsplash. On October 8, the Department of Homeland Security (DHS) published a proposed rule to add fees of either $70,000 or $30,000 for each student who participates in Optional Practical Training (OPT) or STEM OPT.
OPT is an optional benefit of F-1 status that allows international students to gain work experience directly related to their field of study for up to 12 months. Students studying in STEM fields are eligible to extend their OPT work authorization for another 24 months for a total of three years of work experience.
This proposal is grounded in a completely different justification for the elevated fees than the arguments used to establish fees for new H-1Bs. This primer includes essential information about the proposed rule’s content, the administration’s justification, and what may happen next.
What is in the proposed rule? DHS is proposing to charge $70,000 for a student’s first approval for OPT. Any subsequent approvals, such as for a STEM OPT extension, would cost $30,000.
DHS also suggests in the proposed rule it could charge $70,000 for any initial period of OPT following a student’s change to a higher educational level. In other words, if a student engaged in OPT after completing a bachelor’s degree, then went on to complete a master’s degree and was interested in engaging in OPT again, DHS would consider charging the student $70,000 for their post-master’s OPT, as if they had never applied to OPT at all.
The amount of the fee is designed to align with the $100,000 fee for H-1Bs that has been blocked and vacated by the courts. DHS argues the proposed OPT fee is roughly on par with the cost of 1-2 years of tuition for foreign students and would ensure employers do not try to circumvent H-1B rules by using OPT as a replacement for foreign workers.
When are public comments due? Public comments are due Monday, November 9. The Federal Register webpage currently has an error stating that the comment period is 60 days.
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This is incorrect, and the comment period will last only 30 days from publication. Who pays the fee? Any school that wants to recommend an international student to DHS for participation in OPT would be responsible for paying the fee.
The proposed rule leaves it up to the school to determine how it will raise the necessary funds. Methods may include soliciting outside donations or requiring the international students applying for OPT to provide the money. A school would be able to request refunds for any students who are ultimately not approved by DHS for OPT.
Why does DHS argue these fees are necessary? DHS argues that, as the number of students participating in OPT increases, their officers are encountering more institutions, employers, and students “engaged in schemes to exploit the current OPT regulations for fraudulent purposes.” The agency explains the growth of OPT has outpaced its ability to effectively investigate potential cases of fraud.
DHS suggests some of the fraud and abuse relates to the fact that students on OPT are generally not subject to FICA, Social Security, or Medicare taxes, making them cheaper to employ than US citizens. The fees would allegedly “ensure that only highly qualified eligible F-1 students participate in OPT and the labor market [would not be] oversaturated with low-paid foreign workers.” The proposed rule argues that charging these fees would result in schools having a “direct stake in the integrity of OPT” and that they would therefore spend more effort to vet their students and only recommend the most promising ones.
Due to the cost, schools may then naturally recommend fewer students to participate in OPT, thus making it easier for DHS to “conduct more focused and efficient oversight” of suspicious cases. What will happen to international students who are already engaging in or have applied for OPT prior to the effective date?
If this proposal is implemented, no fees will be charged to students who were previously approved for and are already engaged in OPT; already received approval for OPT; or already received a recommendation from the Designated School Officer, the employee in charge of maintaining international students’ records in SEVIS.
How will student enrollment be affected by the proposed rule? The effects of this proposed rule on student enrollment are unclear. Many international students see OPT and STEM OPT as attractive options to gain work experience and build their professional careers in the US.
If DHS finalizes this fee, the extremely high cost would discourage schools, employers, and international students from pursuing this type of work experience and would likely result in overall lower enrollment of international students at US institutions of higher education. DHS argues that the costs of the proposed rule, if implemented, would be vastly outweighed by national interest to protect American workers.
How is this different than the proposed $100,000 fee for H-1Bs? The proposed $100,000 H-1B fee is intended to recover costs incurred by the administration of the immigration system. The money would be used by DHS, the State Department, and the Department of Labor.
As such, the H-1B fee is rooted in 8 USC 1356(m), which authorizes DHS to set fees at a level that recovers the full cost of providing immigration and naturalization services. On the other hand, this OPT proposed rule is based largely on 8 USC 1184(a), which authorizes DHS to set the time and conditions, unless otherwise described in law, for each nonimmigrant who enters the US to remain in the country.
DHS would not keep the funds collected from the OPT fees. The funds would instead be sent to the general Treasury fund to be used for any federal expenses, though DHS says it is “conceivable” that Congress could appropriate the money back to them to “enhance the integrity of the immigration system.” What are the implications for the OPT program?
Critics of OPT have argued that Congress has not specifically authorized it and that it therefore is a product of overreach by the executive branch. In proposing its new fee, DHS necessarily framed OPT as “a valid exercise of DHS’s statutory authority.” However, DHS includes two sentences in the proposed rule, suggesting that, without the fees proposed in the rule, DHS will be unable to prevent fraud and protect American workers, and may, therefore, “shut down the program entirely.” Given their potential to depress OPT participation, the fees could themselves leave the program diminished.
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