DHS proposes $70,000 fee on universities for international student work authorization
The Department of Homeland Security introduced a regulatory proposal charging certified colleges $70,000 for initial Optional Practical Training permits and $30,000 for extensions.
Proposed fee restructuring for OPT
The US Department of Homeland Security posted a regulatory notice on Wednesday proposing substantial fees for international graduates seeking work authorization. Under the plan, certified educational institutions must pay $70,000 for each initial recommendation under the Optional Practical Training (OPT) program. Schools would face an additional fee of $30,000 for any subsequent recommendation, including program extensions. Under existing regulations, foreign students on F-1 visas typically pay an application fee between $500 and $520 directly to the government, while universities face no recommendation charges. The OPT system permits graduates to work for up to 12 months in fields related to their studies, with an extension of 24 months available to graduates in science, technology, engineering, and mathematics (STEM). Students may also work up to 20 hours per week while academic terms are in session. Because the proposed fees target certified institutions rather than students directly, the cost burden could transfer to participating students through institutional charges.
- Current student application fee
- 500 $
- Proposed initial institutional fee
- 70000 $
- Proposed extension fee
- 30000 $
Administration justification and legal pushback
The Department of Homeland Security presented the measures as an effort to counter fraud, preserve the integrity of immigration procedures, and shield domestic workers from wage competition. The agency argued that the training pathway had transformed into a source of cheap foreign labor for employers, stating that foreign graduates must demonstrate their worth directly to employers. Advocacy organizations and legal representatives disputed the proposal's legality immediately following the announcement. Doug Rand, director of the Talent Mobility Fund, argued that the proposal would encounter decisive obstacles in federal court.
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.
Legal opposition follows a September 2026 federal court ruling that halted an earlier administration attempt to cap foreign student stays at four years without individual authorization.
- Donald Trump suggests automatic green cards for foreign college graduates during campaign
- Federal court halts administration rule capping foreign student stays at four years
- Department of Homeland Security publishes proposed $70,000 OPT institutional fee
Economic impact on universities and employers
The OPT program frequently serves as a bridge for graduates transitioning to H-1B work visas, supplying skilled personnel to American technology companies and financial institutions. For decades, the pipeline has allowed engineers and scientists, particularly from India and China, to transition from American university degrees into corporate employment. The Trump administration has separately sought to raise fees on the H-1B program, contrasting with Donald Trump's 2024 campaign suggestion that foreign graduates receive automatic permanent residency. International students also represent a critical revenue source for US colleges and universities through tuition payments. NAFSA, the association representing international education professionals, cautioned that the fee increase would curtail talent flows into key industries. Fanta Aw, executive director of NAFSA, warned of broader consequences for the domestic economy.
Turning away international student talent, perspectives, and aspirations will only negatively impact U.S. innovation, economic growth, workforce development, and global leadership.
According to NAFSA data, international students and their families contributed $42.9 billion to the US economy and supported more than 355,000 jobs during the 2024–2025 academic year.
Procedural steps and comment periods
The published rule must complete a period of public review before the administration can formalize the requirements. Official notices describe differing timelines for this stage, ranging between 30 and 60 days for public comments. Following final publication, the Department of Homeland Security indicated it would observe a 60-day implementation delay to permit educational institutions, employers, and students to adjust to the rules. Trade groups, higher education associations, and business federations are preparing litigation against the rule, which could alter the enforcement schedule before any mandates take effect.
