Colleges would have to pay the federal government $70,000 for every international student who stays to work in the U.S. after graduating, under a DHS proposal published October 8. A separate $30,000 fee would apply each time a school recommends the same student for a subsequent work authorization period.
More than 294,250 students participated in Optional Practical Training (OPT) in the 2024-25 academic year, according to Politico. Under existing regulations, schools could recommend F-1 students for OPT without paying any fee to the government; the only existing charge was a separate fee paid by the student, not the institution. DHS said that without the proposed fees it cannot operate OPT consistent with its fraud-prevention focus and may shut down the program entirely.
NAFSA CEO Fanta Aw said the proposal would add uncertainty for international students and argued OPT supports STEM labor needs, U.S. jobs, innovation and economic growth; NAFSA said it would prepare comments opposing the proposal's provisions.
The Presidents' Alliance on Higher Education and Immigration deputy director Zuzana C. Wootson called the fees prohibitive and said they could harm students, institutions, employers and communities by reducing international enrollment and access to graduates in STEM, health care and research.
On the other side, DHS said the fee would "incentivize educational institutions to exercise greater oversight and selectivity when recommending students for OPT, thereby reducing fraudulent authorizations and curbing 'visa mill' activities."
Under the proposal, a school certified by the Student and Exchange Visitor Program (SEVP) would pay $70,000 per F-1 student before a Designated School Official issues an initial OPT recommendation, and $30,000 for any subsequent OPT recommendation for the same student, including the 24-month STEM OPT extension.
U.S. Citizenship and Immigration Services would be barred from granting employment authorization if the school had not first paid. Refunds would be available only at SEVP's discretion and only before the employment authorization document is issued; once issued, no refund would be available under any circumstances.
DHS's own figures show how far participation has outpaced earlier projections: actual 2024 STEM OPT participation reached 165,524, against DHS's earlier estimate of up to 92,000 participants by 2026. DHS estimates 2,478 schools would be regulated, of which 1,389, or approximately 56 percent, are small entities. DHS considered but rejected an exemption for small institutions, stating that fraud could continue if they were excluded.
DHS estimates the proposed fees would generate between $8.4 billion and $16.5 billion in annual fee transfers, with a primary estimate of $12.4 billion per year. Politico reported a current fee of about $500, which makes the proposed $70,000 initial institutional fee approximately 140 times that amount.
Once a final rule is published, a 60-day transition period would begin during which all OPT recommendations, including STEM OPT extensions, would be subject to the $70,000 initial fee; the $30,000 subsequent fee would apply only after that transition period closes. No effective date has been set because this remains a proposed rule.
Comments on the proposed rule must be submitted via regulations.gov, docket ICEB-2026-0100, by November 9, 32 days after the rule's October 8 publication; comments on the associated information collection are due by December 7.
Access the Legis1 platform for comprehensive political news, data, and insights.
Spot something wrong? Report an issue with this article
